Addressing Workplace Bullying: How Employers Can Prevent Claims and Build a Safe Workplace
Workplace bullying remains one of the most damaging — and most preventable — issues a small business can face. The good news? Employers who put the right processes in place, follow them consistently, and model respectful behaviour are far less likely to ever face a workplace bullying claim. This guide explains what workplace bullying actually is under Australian law, what it is not, and the practical steps you can take to protect your people and your business.
What is workplace bullying under Australian law?
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 — no matter how serious — does not meet the legal definition of bullying (although it may amount to harassment, discrimination, or another breach). The behaviour must be repeated. As the Fair Work Commission has confirmed, there is no set number of incidents required for behaviour to be “repeated,” and it does not have to be the same behaviour each time — but there must be more than one occurrence (Application by Singh [2015] FWC 5850; Re Ms SB [2014] FWC 2104).
The behaviour also has to be unreasonable — meaning behaviour that a reasonable person, having considered the circumstances, would see as unreasonable, including behaviour that is victimising, humiliating, intimidating or threatening.
Examples of workplace bullying
Depending on the context, bullying behaviour can include:
- aggressive, abusive or intimidating language or conduct
- belittling, humiliating or sarcastic comments
- spreading malicious rumours or making vexatious allegations against a worker
- victimising, singling out, ostracising or “freezing out” a worker
- deliberately withholding information needed to do the job
- setting unreasonable workloads, deadlines or work expectations
- practical jokes, “initiation” or exclusion from work-related events
- conducting a workplace investigation in a grossly unfair manner
Bullying can be psychological, physical, direct or indirect. It can be obvious, or it can be subtle and difficult to spot — which is exactly why clear processes and early intervention matter so much.
What workplace bullying is NOT: reasonable management action
This is one of the most misunderstood areas of HR — and one of the most important for any business owner or manager to get right.
Reasonable management action carried out in a reasonable manner is not bullying. Section 789FD(2) of the Fair Work Act makes this clear, and the Fair Work Ombudsman confirms it: managers have the right — and the obligation — to direct and manage work. Performance management, allocating work, giving fair and constructive feedback, counselling an employee about conduct, and following a fair disciplinary process are all legitimate management actions. When carried out reasonably, they are not bullying, even if the employee finds them stressful or upsetting.
We’ve written a dedicated companion article on this — “Managers Acting in a Reasonable Way — What Does It Actually Mean?” — which includes a side-by-side case study of what is and what is not reasonable. If you manage staff, it’s essential reading.
The Commission applies an objective test: was the management action reasonable, and was it carried out in a reasonable manner? Management action does not need to be perfect or ideal to be reasonable. As the Commission noted in the leading case of Re Ms SB [2014] FWC 2104, a course of action can still be reasonable even if particular steps along the way were not, and any “unreasonableness” must arise from the actual action — not merely from the worker’s perception of it.
The key takeaway for employers: get your process right, and you’re far less likely to face a claim
Here is the message we most want business owners to hear: the best defence against a bullying claim is rarely a clever legal argument after the fact — it’s having the right processes in place beforehand, following them every time, and demonstrating respectful behaviour from the top down.
The Fair Work Commission’s Stop bullying benchbook is full of decisions where applications were dismissed precisely because the employer could show that what occurred was reasonable management action carried out reasonably. In Application by E.K. [2017] FWC 3907, for example, the Commission found that a supervisor’s repeated discussions with an employee — which the employee perceived as bullying — were in fact reasonable management action carried out in a reasonable manner, and dismissed the application. The evidence, the documented process, and the manner of the conduct made the difference.
Conversely, where employers ignore grievances, depart from their own policies without good reason, or allow managers to act in a way that is unreasonable in manner (even where the underlying issue is legitimate), the risk rises sharply.
Practical steps to prevent workplace bullying
Drawing on Safe Work Australia’s guidance and our 12+ years of supporting small businesses, here’s how to take a genuinely proactive approach:
- Put a clear Bullying, Harassment & Discrimination policy in place — and make sure it actually reflects your workplace, not a generic template downloaded off the internet.
- Set the standard of behaviour through a code of conduct and lead by example. Culture is set at the top.
- Train managers so they understand the line between firm, fair management and conduct that could be seen as bullying.
- Implement clear reporting and response procedures so concerns are raised early — and act on them promptly and consistently.
- Document everything — performance conversations, complaints, investigations and the steps you take in response.
- Consult regularly with your team to identify risks before they escalate.
- Prioritise psychological health and safety — it’s now a clear WHS obligation, not a “nice to have.”
- Respond quickly. Early intervention is consistently the single most effective way to stop bullying before it causes harm or becomes a claim.
Where to get the right policies and support
You don’t have to do this alone. Fresh HR Insights can put the right foundations in place quickly and affordably:
- Bullying, Harassment & Discrimination and other workplace policies — tailored to your business, not generic downloads.
- Ongoing HR Support Packages — on-call HR, ER and IR advice from $295+GST per month, with no lock-in contracts, so expert help is always a phone call away.
- HR Audit — a health check of your policies, processes and documentation to identify and close gaps before they become problems.
