Unacceptable workplace behaviour in the spotlight again

Rebecca.Michalak — Sat, 24 Sep 2011 22:20:56 +0000

Unacceptable workplace behaviour in the spotlight again : David Jones may have appeared to escape a former employees allegations of sexual harassment with only a reported $850K bill (plus costs) instead of $37m, but the market punished the company, wiping an estimated $81m off the value of its shares when the CEO ‘allegedly’ responsible for the misconduct stood down. Another Australian clothing giant is now under similar scrutiny, with an ex-senior executive of Pacific Brands recently lodging a $9m unfair dismissal and discrimination case against her former employer, highlighting the need for boards and managers to ensure they are risk managing more than just their legislated ‘physical’ safety obligations.

The retail industry may seem be in the hot seat at the moment, but it is by no means alone on this front. Many industries, including the legal profession, have somewhat notorious reputations for unnacceptable workplace behaviour and stress (for a recent example, see article below on issues with stress and mental health claims within legal aid in NSW).

These cases build on the now infamous Naidu multi-million common law and vicarious liability (amongst other things) case (see Naidu v Group 4 Securitas & Anor [2005] NSWSC 618; Naidu v Group 4 Securitas Pty Ltd & Anor [2006] NSWSC 144; and ISS Security Pty Limited v Naidu & Anor [2007] NSWCA 377), which set a range of new precedents for awarded damages, including exemplary damages, and brings the concept of psychological safety at work and the need to prevent unacceptable workplace behaviour and high levels of workplace stress to the fore.

Given this is one of our key areas of expertise, we will be closely following developments on this front, including the upcoming, and in some states already unfolding, changes expected as part of the national harmonisation strategy for OHS across Australia.

http://www.abc.net.au/am/content/2011/s3298136.htm

http://www.theaustralian.com.au/business-old/city-beat/david-jones-ceo-scandal-wipes-81m-off-companys-market-value/story-fn4xq4zx-1225881314209

http://www.proyectoaraucaria.cl/documentos/20101129122936squelch%5B1%5D.pdf

http://safeworkaustralia.gov.au/AboutSafeWorkAustralia/Pages/AboutSafeWorkAustralia.aspx http://www.smh.com.au/nsw/legal-aid-lawyers-buckle-under-work-stress-20110905-1ju9v.html

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Unacceptable workplace behaviour in the spotlight again