ARTICLE · 14 OCTOBER 2012

Employer's textbook response avoids vicarious liability for sexual harassment

Clayton Utz

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A NSW employer recently avoided vicarious liability for sexual harassment because of its quick investigation response.

AustraliaEmployment and HR

Leigh Howard (Formerly With Clayton Utz)

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Employer's textbook response avoids vicarious liability for sexual harassment

Key Points:

A swift response places an employer in the best position to manage an investigation and should be part of any strategy to minimise any potential vicarious liability.

An employer has recently avoided vicarious liability for sexual harassment because of its quick investigation response. Hughes v Narrabri Bowling Motel Limited [2012] NSWADT 161 has reinforced the importance of a timely response to complaints.

What happened in Hughes?

In Hughes, an employee alleged that she was sexually harassed by the supervisor of a hotel business. One of the three allegations she made before the NSW Administrative Decisions Tribunal (ADT) was accepted, and the perpetrator was ordered to pay $7,500 damages.

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