Lazy Sussan? (or why merely having a bullying policy is not enough!)

What's the issue?

A Supreme Court case in Queensland has highlighted the risks to businesses which do not properly implement effective bullying policies and procedures.

What happened?

In Keegan v Sussan Corporation (Aust.) Pty Ltd, a former assistant manager of the retail clothing company Sussan claimed $1.2 million in damages for a major psychiatric injury. The injury was alleged to have been suffered over 11 days due to bullying and harassment by her new manager.

The alleged bullying conduct included unwarranted criticism, being spoken to in an aggressive manner and deliberately excluding the employee from participation in business management matters.

Sussan's Queensland business manager, having been informed of the employee's complaints, did not implement the company's bullying and harassment policy which provided that "all complaints will be treated seriously and impartially, and investigated as confidentially as possible...". Instead, she only called the employee's new manager and told her of the complaints, directing the manager to be "more mindful" of how she dealt with the employee. In a subsequent conversation with the employee herself, the Queensland manager told her that she and her immediate manager would have to work their issues out themselves. This was against the company's specific policy.

What did the Court say?

The Supreme Court found that both managers had failed to properly address the employee's complaints and the adverse effect on her health. Sussan was liable for the actions of both managers and was found to have breached its duty of care to the employee. Accordingly, the Court awarded Ms Keegan over $237,000.00 for general damages and compensation for past and future economic loss.

Tips to avoid this happening to you!

This case demonstrates that merely having a bullying policy is not enough. It is essential that the policy is followed, or else the business will be at risk of claims. This doesn't mean that bullying complaints must always be upheld, however they should always be properly investigated.

Businesses also need to act when an employee is showing signs of distress caused by something that has occurred in the workplace. The risk of a claim will be higher if it can be shown that the business was aware of the effect the workplace environment was having on the employee.

If you need any advice on how to best protect your business from these kinds of claims, please feel free to contact Mitchell Zadow, Managing Principal and Accredited Specialist in Commercial Law, on (03) 8561 3318 or Samuel Ellemor, Senior Associate in Employment Law.

The information contained in this article is intended to be of a general nature only and should not be relied upon as legal advice. Any legal matters should be discussed specifically with one of our lawyers.

Liability limited by a scheme approved under Professional Standards Legislation.