Ignoring employee complaints of inappropriate behaviour proves costly!

An employer's failure to appropriately respond to an employee's complaints regarding inappropriate behaviour has proved costly with an award of $1.3 million in damages being made against it.

Background

Ms Mathews was engaged by Winslow Constructors (Vic) Pty Ltd (Winslow) as a labourer in about August 2008.

During her employment, Ms Mathews was subject to repeated and frequent inappropriate conduct including sexual harassment, bullying and abusive behaviour by fellow employees and subcontractors.

Ms Mathews was initially reluctant to lodge a complaint regarding the conduct given her immediate foreman was responsible for some of the inappropriate conduct. 

When Ms Mathews complained to the area site manager, he would respond with words to the effect of 'leave it with me'. 

In September 2009, Ms Mathews was transferred to another crew and the inappropriate behaviour ceased, until June 2010 when Ms Mathews was inexplicably moved back into the original crew and the sexual harassment, bullying and abuse recommenced. 

When Ms Mathew complained about being returned to the original crew, her foreman stated words to the effect of:

"You will work with whoever I f*&*%^g tell you to work with!"

On 1 July 2010, when Ms Mathews was going home for her lunch break, she was threatened by a co-worker that he would follow her home, rip her clothes off and rape her. Ms Mathews reported the incident to the person responsible for human resources at Winslow.

Later that day, Ms Mathews received a phone call from a private number calling her an abusive name. 

Ms Mathews has not worked since this date and has subsequently been diagnosed with a serious psychiatric illness that developed during and subsequent to her employment with Winslow. The medical evidence submitted into Court indicated Ms Mathews is unlikely to ever work again.

Ms Mathews commenced proceedings against Winslow alleging they were vicariously liable for the tortious acts of its employees and subcontractors and were negligent in failing to provide a safe working environment.

Finding

Mid-way through the hearing, Winslow admitted its negligence in the matter and accordingly there were no findings of liability made by the Court.

In considering damages, the Court awarded Ms Mathews a total of $1,360,027 for general damages, past economic loss and loss of earning capacity.

Lessons 

The case provides a salient reminder for employers to ensure:

• appropriate policies and procedures in place regarding inappropriate behaviour in the workplace including harassment, sexual harassment and bullying; 
• the policies and procedures include clear processes for the making of complaints;
• that 'checks and balances' are in place to ensure complaints are documented, promptly investigated and where required, appropriate remedial action implemented; and 
• that appropriate training (including induction) regarding appropriate workplace behaviours and the employers respective policies and procedures is undertaken.

If you would like to know more about this case or managing inappropriate behaviours in the workplace generally, please contact National Workplace Lawyers on  +61 2 9233 3989.

National Workplace Lawyers

Note — this is for information purposes only and does not purport to be comprehensive or to render legal advice.