Media | Article
Employers punished for workplace bullying
Thursday 4 March 2010
Melbourne Magistrates' Court Decision
On 8 February 2010, the Melbourne Magistrates' Court imposed fines totalling A$335,000 against four individuals, including the director of the company, and the company itself, in relation to the bullying and harassment of a teenage waitress who took her own life.
The Court heard that for over a year the café waitress was subject to relentless taunts, criticisms, name-calling, and on one occasion even had fish sauce poured over her clothes and hair. The Court found that the café was aware of the bullying, did nothing to stop it and had "tacitly approved" of the "persistent and vicious" bullying.
The café was fined A$220,000 on two charges for failing to provide and maintain a safe workplace and failing to properly train and supervise employees under the applicable occupational health and safety legislation. The company's director was personally fined A$30,000 and convicted of the same offences. The victim's three co-workers were fined a total of A$85,000 for failing to take care for the health and safety of a fellow worker.
NSW District Court Decision
In an earlier decision in November 2009, a Sydney bar worker was awarded more than A$500,000 in damages after being subjected to what the NSW District Court found was sustained intimidation, bullying and harassment by her supervisor for over two years.
The supervisor's conduct included repeatedly indicating to the worker that her job was precarious and that the club would "get rid of her", using "extremely vulgar language" both to the worker and in her presence, and placing the worker in "untenable situations" by pressuring and requiring her to bend or break liquor licensing rules on serving alcohol, gaming and sales. The supervisor also demanded that the worker resign from her union, and wrongfully implied that the worker was responsible for a A$2,000 shortage in the cash float when in fact there was no such shortage.
The Court heard that as a result, the worker developed a serious psychological condition rendering her a "hermit" who only leaves home in the company of her husband, and that it is most unlikely the worker will ever return to paid employment again. The Court awarded the worker approximately A$130,000 for past loss of earnings and superannuation, and approximately A$370,000 for future loss of earnings and superannuation.
Lessons for employers
While bullying currently has no legal definition, workplace bullying is unacceptable in any workplace. WorkCover NSW and WorkSafe Victoria have, however, adopted the view that workplace bullying can be defined as "repeated, unreasonable behaviour directed towards an employee or group of employees that creates a risk to health and safety". Employers have a duty at common law and under statute to provide a working environment that is safe and without risks to health. If this obligation is breached, employers and their directors may be liable for significant penalties and damages and resultant adverse publicity. Further, employers may face the day to day costs associated with failing to properly manage workplace bullying and harassment, such as increased absenteeism, loss of productivity, and increased turnover of staff.
Some steps employers can take to prevent workplace bullying and harassment, and to reduce their liability for such behaviour, include the following:
- Introducing robust policies and procedures prohibiting workplace bullying and harassment, providing confidential internal complaint and investigation processes, and making it clear that employees who are found to have engaged in bullying or harassment may be subject to disciplinary action
- Providing regular training to staff in relation to the employer's bullying and harassment policies and procedures so that they are aware of and understand their obligations
- Providing training to supervisors and managers in preventing and responding to bullying
- Monitoring employees' health and safety to act swiftly in response to any signs of unacceptable behaviour.
Middletons is able to work with employers to develop and implement appropriate policies, procedures and training programmes to address workplace bullying.
