When the risk sits at the top: $90,000 ordered against a café owner after unwelcome conduct
A Federal Circuit and Family Court decision has ordered a café owner to pay $90,000 in damages and penalties following an incident involving unwelcome conduct towards a worker. This case is one of the first to be decided under the new workplace harassment laws introduced in 2023.
It involved a café owner, a single incident, and no evidence of an ongoing problem, yet still resulted in serious consequences. The decision highlights that under the new rules, how employers build trust, respond to concerns and prevent issues matters more than intent or apologies after the fact.
What happened
The case involved a worker who described feeling unsafe following an incident at work. She was relatively new to the role and in a vulnerable position, which the Court took into account when assessing the seriousness and impact of the conduct.
While the Court accepted this was a single incident and noted there was no broader permissive workplace culture, the outcome was still significant, reinforcing that one incident can be enough to trigger serious consequences.
Why this decision matters for employers
- Trust and psychological safety are critical — especially in small workplaces
Even though this case involved conduct by the business owner, the broader lesson is about workplace culture. Employees need to trust that they can raise concerns safely, that issues will be taken seriously, and that behaviour will be addressed regardless of who is involved.
Where that trust doesn’t exist, employees are more likely to seek external pathways, increasing legal, financial and reputational risk for the business. This case shows that the absence of a “toxic culture” does not protect an employer if concerns are not handled properly.
- Remorse or an apology does not replace a proper process
Even where a person is remorseful or apologises for their conduct, employers still have an obligation to respond appropriately.
This includes:
- taking the concern seriously
- assessing risk and impact
- and, where warranted, conducting a full and proper investigation
Attempting to resolve matters informally, minimise behaviour, or rely solely on apologies can expose businesses to further risk, particularly if the employee feels unsafe, unsupported, or pressured to move on without the issue being properly addressed.
- Prevention must be visible, active and embedded
A key theme arising from this decision is the importance of preventative measures, not just policies that exist on paper.
Effective prevention includes:
- clearly communicating that certain behaviours will not be tolerated
- training leaders and employees on respectful workplace standards
- empowering bystanders to speak up or intervene safely
- ensuring managers and owners know how to respond when issues arise
These steps are not about assuming misconduct will occur. They are about setting expectations, reducing risk, and demonstrating that the business takes its obligations seriously.
What employers can focus on now
For most small and medium businesses, reasonable preventative steps include:
- clear, current behavioural standards and reporting pathways
- training that goes beyond “tick‑the‑box”, including manager and bystander training
- more than one avenue for employees to raise concerns
- a structured response process that does not rely on informal handling
A quick self‑check for leaders
If you can’t confidently say “yes” to these, it may be time to uplift your approach:
- Do employees trust that they can raise concerns safely?
- Do managers know how to respond when an issue is raised?
- Can we clearly explain what happens after a report is made?
- Are our expectations and standards actively reinforced?
If you’re looking to strengthen prevention measures and build a culture where employees feel safe raising concerns, Perks People Solutions can support you. Get in touch with our HR Consulting Team.
General information only — not legal advice
