Navigating the New Legal Landscape: What Recent Reforms Mean for Employers 

In today’s evolving regulatory climate, business owners and decision-makers with employees need to stay ahead of legal reforms, particularly in areas related to workplace discrimination, harassment, and employee safety. Recent changes in Australia’s legislative framework aim to strengthen protections for workers while increasing employer accountability. These reforms are crucial for businesses to understand, as they not only impact legal obligations but also shape workplace culture and operational risk. 

Understanding the New “Equal Access” Cost Protection Reform 

The final recommendation from the Respect@Work report has been passed by the Federal government. This reform shields claimants in unlawful discrimination and sexual harassment cases from adverse cost orders in all but a few exceptional cases. For businesses, this could lead to an increase in claims being pursued, as the financial risks for claimants are reduced, meaning more employees may feel empowered to take their cases beyond conciliation. 

Importantly, this reform applies not just to sexual harassment cases but also to claims involving discrimination based on race, age, disability, and other protected characteristics. This shift is designed to create a more equitable justice system and highlights the importance of having strong anti-discrimination measures in place in the workplace. 

Why Employers Need to Act Now 

Employers are now facing increased financial exposure due to these changes, which can directly affect litigation strategies and operational risk. Here are some key takeaways for business owners and decision-makers to consider: 

1. Preventative Frameworks Are More Important Than Ever 

The Respect@Work reforms and recent Work Health and Safety (Sexual Harassment) Amendment Regulation 2024 in Queensland reinforce the need for businesses to proactively address workplace harassment and discrimination. This means developing clear policies, conducting risk assessments, and fostering a culture where employees feel safe to report issues. 

2. Cost Implications of Legal Claims 

With the introduction of the “equal access” cost protection, the likelihood of employees pursuing claims in court has increased. Even if your business successfully defends a claim, under the new regime, each party typically bears their own costs, meaning employers will have to manage their legal expenses carefully. Consider early settlements as a practical way to mitigate costs and reduce reputational damage. 

3. Workplace Safety and Compliance Obligations 

Sexual harassment is now explicitly recognised as a workplace health and safety issue, carrying both psychological and physical risks. Duty holders (business owners, managers) are required to assess and manage these risks, ensuring their operations meet the expanded health and safety obligations. 

4. Increased Enforcement and Industrial Manslaughter Laws 

The introduction of industrial manslaughter offences in all Australian states and territories means employers must be proactive in addressing workplace safety. Failures in this area that lead to serious harm or death could now result in significant penalties, including imprisonment for individuals. Ensuring robust safety systems and regular audits is now more critical than ever. 

Practical Steps for Employers to Safeguard Their Business 

To navigate these changes, businesses need to adopt a proactive approach to compliance and risk management. Here are some practical steps to take: 

1. Create a Speak-Up Culture 

Establish clear processes that encourage employees to report harassment and discrimination, and ensure they know their complaints will be taken seriously. A positive, transparent culture helps reduce the risk of unlawful behaviour going unnoticed. 

2. Review Policies Regularly 

Update your workplace policies to reflect the latest legislative changes, including the new positive duty to prevent sexual harassment and other forms of discrimination. Policies should be comprehensive and easy for employees to understand. 

3. Invest in Comprehensive Training 

Train your workforce on issues such as bystander intervention, unconscious bias, and anti-discrimination laws. Managers, in particular, need to be equipped to lead by example and uphold company values related to workplace safety and equality. 

4. Engage in Early Conciliation and Settlements 

Early legal advice and proactive participation in conciliation processes can help mitigate the financial and reputational risks associated with prolonged litigation. Settling early could save both time and resources in the long run. 

5. Conduct a Gap Analysis 

Regularly assess your organisation’s compliance with respect to harassment, discrimination, and workplace health and safety laws. Address any gaps in training, policy, or procedure before they lead to potential legal claims. 

Why Compliance is Good for Business 

While the reforms may seem daunting, they present an opportunity to foster a more inclusive and productive workplace. By prioritising employee well-being and ensuring compliance with the latest laws, businesses can reduce the risk of costly litigation, attract and retain top talent, and enhance their overall reputation. 

At Connected Legal + Commercial, we specialise in employment law and workplace compliance, offering practical solutions to help businesses navigate these complex areas. From policy reviews to risk assessments and compliance audits, we can assist you in building a robust framework that protects both your employees and your business. 

Take action today to ensure your organisation is compliant with the latest legislative reforms and is prepared to face the challenges ahead. Proactive legal support can make all the difference in safeguarding your business from risk while fostering a positive and inclusive workplace culture. 

Need help with employment law or workplace safety compliance? 

Reach out to Connected Legal + Commercial for expert advice on navigating the latest changes and protecting your business from future claims.