'One-stop shop' for bullying and sexual harassment complaints in NSW public sector
Background
On 26 June 2025, the Industrial Relations and Other Legislation Amendment (Workplace Protections) Bill 2025 was passed by the NSW Parliament (Act), and was assented on 3 July 2025. The Act amends the Industrial Relations Act 1996 No 17 (NSW) (IR Act) and the Work Health and Safety Act 2011 (NSW) (WHS Act).
The Act establishes a new jurisdiction for workplace bullying and sexual harassment claims in the NSW Industrial Relations Commission (IRC) and clarifies the IRC’s powers during industrial disputes.[1] It also introduces measures to strengthen work health and safety protections, with a focus on ensuring public sector employers, unions and the regulator collaborate to prevent workplace injuries and deaths.[2]
The legislation was introduced to modernise the NSW industrial relations framework and builds on reforms already implemented in November 2023 by the Minns Labour Government.[3] It also puts into place recommendations from the Booth and Boland taskforce, which was set up to identify opportunities to retain public sector workers, including an extension to consultative bargaining.[4]
The Act originally intended to be paired with a Bill amending the NSW workers compensation scheme. It was proposed that a worker would be required to succeed in a bullying application in the IRC under the legislation before lodging a workers compensation application for psychiatric injury arising from that bullying. This gateway requirement would have made these claims subject to greater scrutiny and may have reduced the overall number of claims.
However, the proposed amendments were shelved in early June 2025 after strong objections from various public sector unions. The new jurisdiction of the IRC remains in place under the Act.
Key changes
New IRC process for bullying and harassment
- The Act adds a new chapter into the IR Act that provides the IRC with jurisdiction to conciliate, arbitrate and make orders concerning the bullying and sexual harassment of NSW public sector employees at work.[5]
- NSW workers who are not covered by the Fair Work Act 2009 (Cth) – such as most public sector and local government workers – can seek a stop bullying or harassment order. Breaching an order can result in a penalty amount of up to $18,870 for an individual or $93,900 for corporations.[6]
- Unlike the bullying jurisdiction in the Fair Work Act, the IRC can also award damages of up to $100,000 in addition to a stop order.
- These damages can be awarded against any individual said to have engaged in bullying or sexual harassment against the worker – not just the employer – as long as the person was interacting with the worker through their employment. This could include members of the public and contractors working in government projects.
- Employers may also be held legally responsible for sexual harassment by employees or agents unless they can show they took reasonable steps to prevent it. This is similar to existing rules under the Anti-Discrimination Act 1977 (NSW).
- These changes may draw in individuals or businesses outside the NSW government and escalate workplace disputes into complex legal proceedings involving multiple parties, including insurers.
- To prevent an applicant employee double dipping in compensation, the IRC must consider any other grievance or dispute process that has already been used. However, the wording is very general in its direction to the IRC.
- The Act also prevents applicants from bringing multiple claims under this new process and other anti-discrimination or sexual harassment legislation. However, it is not clear how this will interact with potential workers compensation claims or civil action against other parties.
Return to work disputes
Increased small claims cap
The Act increases the maximum amount payable to underpaid workers in small claims proceedings from $20,000 to $100,000.[9]
Expanded union powers
- Unions can now bring proceedings for any offence under the WHS Act if they have notified SafeWork NSW of their intention and SafeWork NSW either declines or does not bring proceedings within 12 months of being consulted.[10]
- Entry permit holders now have the right to conduct tests, take measurements, photos, videos and conduct air monitoring at a workplace if it relates to a suspected breach of the WHS Act.[11]
- Courts can also now order part of a fine or other penalty be paid to a union prosecutor.[12]
What this means for public sector agencies and local government employees
NSW public sector agencies, local government employers and businesses who interact with NSW public service agencies should take note of these changes.[13]
Now is the time to review:
- anti-bullying and harassment policies
- grievance handling procedures
- staff training programs
- payroll and pay practices
- return to work procedures
to ensure they are up to date and meet the Act's new requirements. [14]
This article was written with the assistance of Hannah Guy and Sarah Babic, Seasonal Clerks.
[1] Legislative Assembly Hansard Second Reading Speech, Industrial Relations and Other Legislation Amendment (Workplace Protections) Bill 2025 (‘Second Readings Speech’).
[2] Ibid.
[3] Ibid.
[4] Ibid.
[5] Industrial Relations and Other Legislation Amendment (Workplace Protections) Bill 2025, Schedule 1 [9] (‘Workplace Protections Bill 2025’); Explanatory note, Industrial Relations and Other Legislation Amendment (Workplace Protections) Bill 2025, 2 (‘Explanatory note’).
[6] Workplace Protections Bill 2025 (n 5) Schedule 1 [9].
[7] Workplace Protections Bill 2025 (n 5)Schedule 1 [2]; Explanatory note (n 5) 5.
[8] Second Readings Speech (n 1).
[9] Workplace Protections Bill 2025 (n 5)Schedule 1 [38]; Second Readings Speech (n 1).
[10] Second Readings Speech (n 1),22; Workplace Protections Bill 2025 (n 5) Schedule 3 [14].
[11] Second Readings Speech (n 1),22; Workplace Protections Bill 2025 (n 5) Schedule 3 [5].
[12] Second Readings Speech (n 1),22; Workplace Protections Bill 2025 (n 5) Schedule 3 [15].
[13] Second Readings Speech (n 1),22.
[14] Ibid.
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