Workplace Sexual Harassment Prevention: What Australian Employers Must Do in October 2026

From October 2026, Australian employers face a transformed legal duty to prevent workplace sexual harassment. This isn’t a minor compliance update — it’s a fundamental shift in liability that puts the onus directly on you to take proactive, documented action.

If your business has 5 or more employees, or if you’re a larger employer, these new obligations are non-negotiable. Failing to meet them can result in FWC orders, damages claims, and reputational harm. This guide walks you through what’s changing, what you must do, and how to build a defensible harassment prevention program.

What’s Changing in October 2026?

The Fair Work Act is being amended to impose a positive duty on all employers to take all reasonable steps to prevent sexual harassment by employees and third parties (clients, contractors, customers). This is a departure from the old reactive model, where employers were primarily liable after harassment had already occurred.

Key changes include:

• Positive duty to prevent — not just respond. You must act before an incident happens.
• Third-party harassment — you’re liable for harassment by clients, contractors, and visitors, not just staff.
• Individual director and officer liability — section 527D of the Fair Work Act creates direct liability for individuals managing the organisation.
• Reasonable steps test — the law requires you to demonstrate what steps you took to prevent harassment. Ignorance is not a defense.
• Penalties up to $99,000 for contraventions, plus compensation claims from affected employees.

The legislation mirrors similar laws already in place in NSW and Victoria, and aligns with the Sex Discrimination Act’s duty to prevent sexual harassment.

Who Does This Apply to?

Technically, all employers. However, the reasonableness test considers your business size, resources, and industry. A small business of 5 employees will have different “reasonable steps” compared to a large corporate.

If you employ staff in NSW or Victoria, you’re already operating under stricter harassment prevention laws — October 2026 brings the rest of Australia to that standard.

What Are “Reasonable Steps”?

The Fair Work Commission and legal authorities have identified eight core components of a reasonable prevention program:

1. Clear Policy and Reporting Channels

You must have a written sexual harassment policy that defines prohibited conduct, explains the reporting process, and specifies what will happen after a complaint. The policy should be provided to all employees at induction and updated annually.

Key elements: contact person(s) for complaints, confidentiality commitments, no-retaliation clause, and multiple reporting options (manager, HR, external contact). Ensure employees know there’s no single “right” way to report — formal complaint forms, verbal reports, and anonymous reports should all be documented.

2. Induction and Training

New employees must understand what harassment is, what the workplace policy is, and how to report concerns. Don’t assume people know what “sexual harassment” means — give specific examples.

Annual refresher training is strongly recommended. Training should cover managers separately, focusing on their role in preventing harassment and responding appropriately to reports. For guidance on best practice training, refer to Fair Work Ombudsman resources.

3. Manager and Supervisor Accountability

Managers must be trained and empowered to identify potential harassment, respond to employee concerns, and escalate appropriately. Include sexual harassment prevention and response in manager performance objectives. Document their training and competency.

4. Incident Response Procedure

You need a documented process for receiving, investigating, and resolving complaints. The process should include:

• Timely acknowledgment of the complaint (within 5 working days is best practice).
• Immediate steps to protect the complainant (e.g., changing shifts, separating parties).
• A fair, impartial investigation conducted by trained personnel or external investigator.
• Support for both the complainant and respondent during investigation.
• Findings communicated within a reasonable timeframe (typically 4–8 weeks).
• Disciplinary action if misconduct is found, commensurate with the severity.
• Follow-up to ensure no retaliation occurs.

5. Record-Keeping

Document everything. Keep records of complaints, investigation reports, outcomes, and disciplinary actions. These records are your evidence of “reasonable steps” if the Fair Work Commission later investigates.

Ensure confidentiality — records should be stored securely and access limited to those with a genuine need to know.

6. Third-Party Management

If clients, contractors, or suppliers harass your employees, you must respond — even though you don’t have the same employment relationship with them. This might include:

• Communicating your workplace standards to clients and contractors.
• Addressing inappropriate behaviour immediately (e.g., asking a client to leave or reassigning work).
• Documenting the incident and your response.
• Supporting affected employees.

7. Periodic Risk Assessment

Annually or after significant incidents, assess your workplace for harassment risks. This includes reviewing your policy, training effectiveness, and complaint patterns. Are certain teams or roles at higher risk? Have new vulnerabilities emerged (e.g., remote work, new client base)?

8. Communication and Culture

Create an environment where employees feel safe reporting concerns. This means leaders openly supporting the policy, responding seriously to complaints, and demonstrating that harassment will not be tolerated. Zero tolerance doesn’t mean zero compassion — investigations must be fair, and support must be offered to both parties.

Practical Implementation: A 4-Week Action Plan

Week 1: Policy Review

Audit your current harassment policy. Does it address sexual harassment specifically? Does it explain the reporting process? Is it current with 2026 law? If you don’t have one, draft a policy using Fair Work Commission guidance or consult an employment lawyer. Budget 5–10 hours of HR time or $1,000–$2,000 for external review.

Week 2: Training and Induction

Update your induction checklist to include sexual harassment prevention training. Record who received training and when. Design a 30-minute manager training session covering complaint handling, investigation basics, and no-retaliation obligations. Roll this out to all managers within 4 weeks.

Week 3: Investigation Procedure

Document your complaint handling process step-by-step. Assign responsibility: who receives complaints? Who investigates? Who communicates findings? If your team lacks investigation experience, identify an external investigator or HR consultant on standby (cost: $3,000–$8,000 per investigation).

Week 4: Documentation and Communication

Set up a secure complaints register. Communicate your updated policy to all staff via email, team meeting, or staff handbook. Reinforce the no-retaliation message and provide contact details for reporting. Document all communications.

What If You Receive a Complaint?

Treat every complaint as serious. Within 48 hours, meet with the complainant confidentially to understand what happened. Explain the process and offer support (counselling, leave, role adjustment). Avoid asking them to investigate themselves or confront the respondent.

Begin a formal investigation within 5 working days. During the investigation, keep both parties informed, protect confidentiality, and prevent retaliation. Once findings are determined, communicate them promptly and take proportionate action (counselling, warnings, termination, or other remedies).

Keep records of the entire process. These are your proof of compliance if a dispute later arises.

Industry-Specific Risks

Some industries face higher harassment risk — hospitality, healthcare, customer service, construction, and education. If you operate in these fields, your “reasonable steps” should be more comprehensive, including:

• More frequent training.
• Explicit protocols for managing intoxicated or aggressive clients.
• Anonymous reporting options.
• Peer mentoring or buddy systems.

Potential Cost of Non-Compliance

The Fair Work Commission can issue penalties up to $99,000 for individuals and $198,000 for organisations. Beyond that, complainants can sue for damages under the Sex Discrimination Act, potentially claiming compensation for lost wages, emotional distress, and medical costs. A single unresolved complaint can cost $50,000 in legal fees, settlements, and lost productivity.

Investing in a preventive program now costs a fraction of defending a claim later.

Key Takeaways for Employers

October 2026 marks a shift from reactive complaint handling to proactive harassment prevention. You must have a documented policy, train managers and staff, investigate complaints fairly, and create an environment where harassment is not tolerated.

Start implementing these changes now. By October 2026, your workplace should have:

• A written sexual harassment policy distributed to all staff.
• Trained managers and supervisors.
• A documented complaint procedure.
• A secure complaints register.
• Evidence of risk assessment and prevention efforts.

If you’re unsure where to start, Fair Work Centre can help you design a compliant prevention program tailored to your business. Our employment lawyers have assisted hundreds of businesses in building defensible harassment prevention systems. A small investment now protects you from significant liability later.