In a landmark ruling for Victorian workplace safety, the Magistrates’ Court handed down a $100,000 fine (plus costs) to an employer, Blisspell Pty Ltd (trading as Toy Networx), for failing to provide a safe and appropriate work environment.
While many businesses believe that a generic code of conduct is enough to protect them, this case proves that the absence of robust, actively implemented policies can lead to devastating financial and reputational consequences.
The Background
The prosecution followed allegations from an employee regarding a series of inappropriate behaviours by a company director. These included:
- Inappropriate and promiscuous remarks made in the workplace; and
- Text messages that intruded into the employee’s personal life and crossed professional boundaries.
The core of the legal failure, however, was not just the conduct itself, but the systemic failure of the employer to prevent it.
The Ruling
The Court found that Blisspell had essentially no formal processes in place to manage workplace behaviour. The Court rejected Blisspell’s defence that it held monthly communal meetings about workplace behaviour.
The Magistrate noted that informal meetings or “chats” are insufficient to control inappropriate behaviour, particularly where power dynamics (such as a Director to employee relationship) may prevent employees from speaking up.
Why This Matters: The Shift to Psychosocial Safety
Under the Occupational Health and Safety Act 2004 (Vic), an employer’s duty to provide a safe workplace includes psychological health. This case highlights that:
- Employers must have a clear, written policy defining sexual harassment and unacceptable conduct.
- There must be a safe, transparent way for employees to report grievances without fear of retribution.
- Simply having a document on a server is not enough. Employers must demonstrate they have trained managers and staff on these policies.
Strategic Takeaways for Your Business
To avoid a similar $100,000 penalty, we recommend that employers move beyond a “compliance-only” mindset:
- Ensure that your grievance procedures allow employees to report issues even if the alleged harasser is a high-ranking executive or director.
- Treat behavioural risks with the same seriousness as physical hazards (like machinery or falls).
- In court, if it isn’t documented, it didn’t happen. Keep records of training attendance and policy acknowledgments.
How Hart & Co Lawyers Can Help
The modern regulatory environment in Victoria leaves no room for “informal” workplace management. At Hart & Co Lawyers, we specialise in drafting bespoke workplace behaviour frameworks and providing the executive training necessary to ensure your leadership team understands their positive duty.
Protect your business and your people. For a comprehensive audit of your workplace policies, contact Roxanne Hart or Veronica Voulgaris today.
