The Federal Court’s recent decision in Magar v Khan [2025] FCA 874 marks a historic moment for workplace law, awarding $305,000 in damages — the highest sexual harassment payout ever ordered in Australia.
Why This Case Stands Out
- Highest damages awarded under the Sex Discrimination Act 1984 (Cth).
- Sex-Based vs Sexual Harassment: The Court explored the distinction:
- Sex-based harassment = demeaning conduct because of a person’s sex.
- Sexual harassment = conduct of a sexual nature.
While Ms Magar faced a workplace culture tolerant of sexist conduct, the sex-based harassment threshold was not met in her case.
- Toxic Workplace Culture: The Court accepted that sexist behaviour was normalised, with management disinterested in stopping it — creating an environment conducive to further harassment.
- Victimisation Finding: The Respondent’s defamation threats (via Concerns Notices) against Ms Magar after she raised her complaint formed the basis for the victimisation ruling.
- Evidence Without Corroboration: The hostile culture made it easier for the Court to accept allegations of sexual harassment, even with limited corroborating evidence.
Damages Awarded
- Sexual harassment: $160,000
- Victimisation: $10,000
- Aggravated damages: $5,000
- Past economic loss: $90,000
- Future economic loss: $40,000
Why It Matters to Employers
Since 2022, all employers have a positive duty under the Sex Discrimination Act to eliminate sexual harassment — regardless of business size. This case is a wake-up call: a safe and respectful workplace is NOT optional. It requires leadership, investment, and proactive action.
Need Support?
Drayton’s can help you:
- Finalise a Sexual Harassment Prevention Plan
- Update your Respectful Workplace Policies
- Stay compliant and protect your workplace culture
Contact Drayton’s today to safeguard your people — and your business.
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Have any questions or need more details?
Reach out to us. We’d love to hear from you!
Ross
Legal Practice Director, Drayton’s Law
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