Workplace Bullying: The Complete Guide for Australian Employers

Workplace bullying is one of the most damaging issues a business can face — and one of the most preventable. Workplace Bullying harms your people, drains productivity, and can expose you to serious legal and reputational risk. But here’s the encouraging part: employers who understand what Workplace Bullying actually is, put the right processes in place, and lead with respect are far less likely to ever face a claim.

This is your starting point. Below you’ll find the essentials every business owner and manager needs to know — and links to our in-depth guides for when you want to go deeper. Early intervention has always been critical in addressing Workplace Bullying, and it starts with getting the fundamentals right.

What is workplace bullying?

Under section 789FD of the Fair Work Act 2009 (Cth), a worker is bullied at work when:

  • an individual or group of individuals repeatedly behaves unreasonably towards a worker or group of workers at work, and
  • that behaviour creates a risk to health and safety.

Both elements must be present. A single incident — however serious — does not meet the legal definition of bullying (though it may still be unlawful as harassment or discrimination). The behaviour must be repeated and unreasonable, judged by what a reasonable person would consider unreasonable in the circumstances.

Bullying can be psychological, physical, direct or indirect. It can be loud and obvious, or quiet and subtle. Common examples include aggressive or intimidating conduct, belittling or humiliating comments, spreading malicious rumours, deliberately excluding someone, withholding information they need, or setting deliberately unreasonable workloads.

What workplace bullying is NOT

This is the part that catches many employers by surprise. Reasonable management action carried out in a reasonable manner is not bullying. Section 789FD(2) of the Fair Work Act makes this clear. Managing performance, allocating work, giving honest feedback, counselling an employee about conduct, and following a fair disciplinary process are all legitimate parts of running a business — even if the employee finds them uncomfortable.

The line between firm, fair management and bullying usually comes down to how action is carried out. Get the process and the manner right, and you’re well protected. We explain exactly where that line sits — with a clear side-by-side comparison and a real case study — in our dedicated guide linked below.

Why prevention matters so much

The single most powerful thing you can do about workplace bullying is to stop it taking hold in the first place. Beyond the human cost, bullying damages morale, increases turnover and absenteeism, and can lead to costly Fair Work claims, workers’ compensation claims and reputational harm. Employers also now have clear work health and safety duties to manage psychosocial hazards, including bullying.

The good news is that prevention is largely within your control. A clear policy, trained managers, consistent processes, and a respectful culture are your best protection — and they’re far cheaper than dealing with a claim.

How to prevent and respond to bullying — the essentials

  • Have a clear, tailored Bullying, Harassment & Discrimination policy — not a generic template off the internet.
  • Set the standard through a code of conduct, and model respectful behaviour from the top.
  • Train your managers so they know the difference between reasonable management and conduct that crosses the line.
  • Make it easy to raise concerns with clear reporting and response procedures — and act promptly and consistently.
  • Document everything — conversations, complaints, investigations and the steps you take.
  • Intervene early. The sooner you act, the easier it is to resolve — and the less likely it is to escalate into harm or a claim.
reasonable management action

Go deeper: our detailed guides

For the full picture, read our two in-depth companion articles:

Get the right support in place

You don’t have to navigate this alone. Fresh HR Insights gives small business owners affordable, on-call HR support — so expert help is always just a phone call away. Whether you need policies drafted, managers trained, or someone in your corner for a tricky situation right now, we’ve got you covered:

  • HR Support Packages  — ongoing, on-call HR, ER and IR advice from $295+GST per month, with no lock-in contracts. See all our packages and pricing.
  • Workplace Policies & Procedures  — bullying, harassment, discrimination and more, tailored to your business.
  • HR Audit — a health check of your processes and documentation so you’re protected before you ever need to be.

Got a question, or facing a tricky staff situation?

Book a free, no-obligation 30-minute discovery call and we’ll help you work out the right next step. For peace of mind in times of turbulence — you don’t have to do it alone.

Frequently Asked Questions: Workplace Bullying

What is the legal definition of workplace bullying in Australia?

Under section 789FD of the Fair Work Act 2009, workplace bullying is when an individual or group repeatedly behaves unreasonably towards a worker, and that behaviour creates a risk to health and safety. Both elements must be present.

Is a single incident bullying?

No. The behaviour must be repeated. A one-off incident, however serious, doesn’t meet the legal definition of bullying — although it may still be unlawful as harassment, discrimination or another breach, and should never be ignored.

Is performance management or discipline bullying?

No. Reasonable management action carried out in a reasonable manner is expressly excluded from the definition of bullying. Managing performance, allocating work and following a fair disciplinary process are legitimate — provided they’re reasonable and carried out reasonably.

Who can be a workplace bully?

Anyone — a co-worker, a manager, a group of people, or even someone external. The law focuses on the behaviour and its effect, not the person’s job title.

What’s the best way for an employer to prevent bullying?

Have a clear, tailored policy; train your managers; follow your processes consistently; document everything; respond to concerns early; and model respectful behaviour from the top. Prevention is far cheaper and more effective than dealing with a claim.

Do small businesses have to deal with bullying risk?

Yes. Every business, regardless of size, has work health and safety duties that include managing the risk of bullying and other psychosocial hazards. A clear policy is one of the simplest ways to meet that obligation.

What can an employee do if they’re being bullied?

Where possible, they should first use their workplace’s internal processes. If that doesn’t resolve it, an eligible worker can apply to the Fair Work Commission for an order to stop bullying (Form F72). The Commission prioritises these applications.

Where can I get help with bullying in my business?

Fresh HR Insights provides affordable, on-call HR support for small business owners across the Gold Coast, South East Queensland, Brisbane and Australia-wide. Book a free 30-minute discovery call and we’ll point you in the right direction.

Feeling out of your depth?

Bullying complaints are some of the hardest situations a business owner can face. The stakes feel high, the emotions run hot, and one wrong step can turn a manageable issue into a costly claim. If you’re staring at a complaint right now and not sure where to start — that’s completely normal, and you don’t have to work it out on your own.

Fresh HR Insights gives you an experienced HR expert in your corner, on call when you need one. We’ll help you respond calmly, fairly and properly — protecting your people and your business.

Book a free, no-obligation 30-minute discovery call and we’ll help you work out the right next step. For peace of mind in times of turbulence — you don’t have to do it alone.

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