A Wake-Up Call for Employers
In the case Magar v Khan [2025] FCA 874, the Federal Court awarded a landmark total of $305k to Ms Magar, representing the highest compensation ever awarded in a sexual harassment claim under the Sex Discrimination Act 1984 (Cth).
A young Nepalese woman, Ms Magar, has made legal history after the Federal Court awarded her $305,000 in damages, the highest sexual harassment payout ever ordered in Australia. The case involved repeated and escalating harassment by her manager at a Mad Mex franchise, where she worked casually while on a student visa. The Court found that Mr Khan, her manager, used his position of power to relentlessly target her with sexualised comments, lewd jokes, and inappropriate behaviour, including isolating her in his car and showing her pornography. The Court acknowledged that Mr Khan exploited her vulnerability as a young migrant with limited support networks.
What made this case particularly significant was the broader toxic workplace culture that tolerated and even encouraged sexist conduct. Senior staff at the franchise regularly made derogatory comments about women, and there was no meaningful intervention from management to stop it. Justice Bromwich concluded that this environment helped normalise inappropriate behaviour, allowing it to escalate into serious sexual harassment. The judgment paints a clear picture of how a hostile work environment isn’t always marked by a single incident, but can instead stem from a steady, unchecked erosion of dignity and respect.
In a landmark aspect of the ruling, the Court also found that Mr Khan unlawfully victimised Ms Magar by attempting to silence her through defamation threats after she tried to take her complaint beyond internal processes. These legal threats, issued through formal Concerns Notices, were deemed an attempt to pressure her into withdrawing her complaint, setting a powerful legal precedent that such tactics can constitute victimisation under the law.
Ms Magar’s experience left her deeply traumatised and unable to work for more than two years. Her case sheds light on the heightened risks faced by migrant women, who are statistically more likely to experience harassment but far less likely to report it. It also underscores the positive duty all Australian employers now have under the Sex Discrimination Act to prevent harassment and respond effectively. This ruling sends a clear message to business leaders: fostering a safe, respectful workplace isn’t optional, it requires ongoing leadership, investment, and action.
The damages awarded in this case included:
- General damages for sexual harassment: $160,000
- General damages for victimisation: $10,000
- Aggravated damages: $5,000
- Past economic loss: $90,000
- Future economic loss: $40,000
The law is clear. Since 2022, every employer, regardless of the size of their business, has a positive duty under the Sex Discrimination Act to eliminate sexual harassment.
Don’t Wait for a Claim! Finalise your Sexual Harassment Prevention Plan now & ensure you have up to date policies.
HR in Health are hear to assist in ensuring you are compliant with your legal obligations. To start with, you can purchase a Sexual Harassment Prevention Plan & Respectful Workplace Policies or become a member today.