First Judgment Following Introduction of Respect at Work Reforms

A recent final judgement in Mejia v Capital City Cafe-Bar [2026] has highlighted the significance of the Respect@ Work Reforms introduced into the Fair Work Act 2009, and the implications of contravening these provisions. The applicant was a young casual hospitality worker who alleged that the café's sole director sexually harassed her at work by engaging in unwelcome physical conduct, including hugging and kissing her without her consent. 

By the time the matter came before the Court, the company had entered liquidation, leaving the sole director as the primary respondent. The director admitted both the employment contraventions and his involvement in the sexual harassment.

The Court considered:

  • whether the director's conduct constituted sexual harassment under s 527D of the Fair Work Act;

  • the appropriate compensation for the applicant's non-economic loss;

  • the appropriate civil penalties for the sexual harassment and other Fair Work Act contraventions.

The Court held that the admitted conduct amounted to sexual harassment "in connection with work" in breach of s 527D.

The Court noted several aggravating factors:

  • the applicant was a young migrant worker in a vulnerable position;

  • the conduct occurred in the workplace by a person in authority;

  • the power imbalance increased the seriousness of the misconduct.

Although the harassment involved a single incident, the Court found it was sufficiently serious to warrant substantial compensation and penalties. The Court also gave limited weight to the director's apologies, finding they appeared motivated, at least in part, by a desire to avoid the consequences of his conduct rather than genuine remorse.

The Court ordered:

  • $50,000 in compensation for the applicant's non-economic loss arising from the sexual harassment;

  • $9,390 in civil penalties for the breach of s 527D;

  • $30,610 in penalties for underpayment and record-keeping breaches.

Key Takeaways:
The case establishes several important principles:

  • a single incident of sexual harassment can justify substantial compensation;

  • individual directors and managers can be personally liable under the Fair Work Act where they are involved in the contravention;

  • the new Fair Work Act sexual harassment provisions provide an additional avenue for employees to obtain compensation and civil penalties, alongside remedies available under anti-discrimination legislation

Tina Cooper