The Federal Court found the employee was sexually harassed by her employer and victimised for complaining about his unlawful conduct
The Federal Court of Australia has ordered the owner of a fast-food franchise in Sydney to pay $305,000 in damages to a former employee after finding he sexually harassed and victimised her during her employment.
Justice Bromwich concluded that the manager engaged in repeated acts of sexual harassment, including making sexual comments, showing pornography, and touching the young worker with sex toys.
Most of the reported incidents took place on Sundays between mid-January and mid-February 2023, often while the employee was in or near the manager's car.
"I am therefore satisfied that [the employee's] allegations of sexual harassment arising from the Car Incidents on at least four of the five Sundays from 15 January 2023 to 12 February 2023 have been proven, again paying due regard to the seriousness of these allegations," Bromwich said in the decision.
"The content of [the employee's] evidence in relation to the Car Incidents makes it relatively easy to be satisfied that the conduct amounted to sexual harassment."
Impact of sexual harassment
The employee, a Nepalese national in her early twenties, began working at the store in September 2021 and was promoted to manager in March 2022.
According to the court, the harassment escalated in January 2023 after the employer noticed a bruise — a "hickey" — on her neck.
He publicly joked about her sexual activity and began subjecting her to increasingly invasive sexual comments and actions in his car, including showing pornographic videos and making crude enquiries about her sexual preferences.
By mid-February, the employee's mental health had deteriorated severely. On February 17, she boarded a bus to work but was unable to get off.
"I couldn't get out of the bus. It was like I knew something much more bad could happen," she said as quoted in the judgement.
"So, like, when the bus stopped at the bus stop, like, where I should have gotten off, I didn’t. I just stayed there and watched the bus stop pass by, and, like, I came back home."
Employer denies allegations
The employer denied all allegations of sexual harassment and claimed the interactions never occurred. His legal team argued that he was medically incapable of engaging in sexual conduct, citing various health conditions.
However, the Court found these claims unconvincing and irrelevant.
"[The employer's] evidence was that he did not have a sex drive, but there was nothing to suggest that he could not engage in other acts of a sexual nature that did not require a sex drive," the court said.
"His boasting to [the employee] about his exploits included describing acts which did not require him to perform sexually in a way that the medical conditions he described precluded, such as using sex toys or performing oral sex."
Bromwich further found that the timing and intent of the two "Concerns Notices" sent by the employer, through his lawyers, to the employee amounted to unlawful victimisation.
He said that the employer sent the Concerns Notices on the ground that the employee alleged that he engaged in acts that were unlawful.
"I find that [the employer], by sending each of, and both, of the Concerns Notices, committed acts of victimisation against [the employee]."
Aggravated damages awarded
As a result of the case, the court awarded $305,000 to the employee.
"I find that [the employee] was sexually harassed by [the employer] and victimised for complaining about his unlawful conduct. I am also satisfied that his conduct caused her to suffer loss and damage," the court said.
The award includes $160,000 in general damages for sexual harassment, as well as $10,000 for victimisation due to the retaliatory legal threats. It also included:
- $5,000 in aggravated damages, relating to how the employer conducted his defence at trial
- $90,000 for past economic loss
- $40,000 for future economic loss due to her continued psychological impairment
