The Full Court of the Federal Court of Australia has recently handed down a decision in Richardson v Oracle Corporation of Australia[1] ordering an employer to pay $100,000 in general damages (pain and suffering and loss of enjoyment of life) to the victim of sexual harassment who suffered from a psychological injury.
The Facts
It was found that Ms Richardson, had been the victim of sexual harassment by a co-worker on 11 separate occasions which involved unwelcome and humiliating verbal advances, and comments and slurs of a sexual nature.
The employer, Oracle, was found to be liable for the conduct of the coworker and ordered to pay $18,000 in general damages to Ms Richardson.
The Appeal
Ms Richardson appealed the decision to award her $18,000 arguing that the damages were ‘manifestly inadequate’ and out of touch with community expectations and standards.
The Full Court increased the general damages award to $100,000!
The Findings
Justice Kenny made a number of comments with respect to the inadequacy of compensation in past sexual harassment claims. Her honour discussed the disparity in the compensation for pain and suffering awarded in sexual harassment cases compared to other cases where individuals suffer comparable personal loss such as in personal injury cases. Her honour concluded that the amount of general damages awarded up to this time in sexual harassment cases do not accord with the communities ‘estimation of the value to be placed on these matters.’
What this means moving forward
This case heralds a new era in the area of sexual harassment where employers may find that victims of alleged sexual harassment are less inclined to accept offers of settlement for modest sums. Employers must be aware that they may be held vicariously liable for sexual harassment by their employees. Employers must ensure that proper processes and procedures are in place for the training of employees with respect to their rights and that a complaints process is implemented that can handle complaints quickly and fairly. Victims of sexual harassment must still lodge a complaint with the Australian Human Rights Commission which may involve conciliation between the parties before an action may be commenced in the Federal Court.
This provides the parties the opportunity to settle the matter outside of court without the need to incur legal expenses. If you are a victim of sexual harassment and would like to discuss making a complaint please contact your preferred solicitor at our firm.
Likewise, if you are an employer and are not sure if you have adequate systems in place to deal with sexual harassment complaints please contact us and we will be able to review your practices and help implement new procedures, if necessary. We can also assist you to deal with any complaints that are made. [1] [2014] FCAFC 82
