Federal Court Orders Customers to Pay $116,000 for Harassing Storage Facility Worker
A landmark ruling under new workplace laws has directly held customers liable for sexual harassment, delivering a powerful message about accountability beyond the employer-employee relationship.
"The worker's evidence was harrowing and conveyed isolation and degradation." – Judge Salvatore Vasta
The Federal Circuit and Family Court of Australia has ordered a major customer and a contractor to pay tens of thousands of dollars in compensation and penalties for sexually harassing a gay male worker at a self-storage facility.
The Ruling and Penalties
Judge Salvatore Vasta found that the worker was subjected to a pattern of sexualized and homophobic comments by two men who were not his employers. The court has ordered:
- $90,000 in compensation, for which both men are jointly liable.
- $13,000 in penalties owed by each man individually.
A First Under New Law
This case is believed to be the first of its kind since a 2023 amendment to the Fair Work Act, which explicitly covers sexual harassment by any perpetrator, including customers and third parties. Previously, legal avenues for holding non-employer harassers directly accountable were more limited.
Key Legal Context
- The provision now makes perpetrators directly accountable regardless of their relationship to the workplace.
- Businesses still retain a duty to protect workers from customer harassment, but can now point to this direct customer liability.
- Separate avenues for redress also exist under the Sex Discrimination Act for third-party harassment.
Reactions from Legal Experts
- Lawyer Justin Penafiel, who represented the worker, stated the decision "underscores serious financial consequences for customer harassment."
- Employment lawyer Yuva Harish from Inner City Legal Centre called the decision an important development for workplace protections, particularly for LGBTQ workers.
The Worker's Experience
The court noted that the worker's evidence was "harrowing" and conveyed a deep sense of isolation and degradation. The worker reported that his initial complaints were not addressed, a failure that the court weighed in its decision.