Discrimination in the workplace is one of those issues that makes seasoned managers break into a cold sweat. It is uncomfortable. It is legally charged. And if you handle it poorly, the consequences can be serious not just for your organisation, but for you personally.
The good news? You do not need a law degree to get this right. What you do need is a clear understanding of your obligations, a practical process for handling complaints, and a genuine commitment to treating every person in your team fairly.
This guide walks you through exactly that in plain English, without legal jargon, with real references to Australian law, so you can act with confidence.
What Is Workplace Discrimination Under Australian Law?
Let us start with what discrimination means in a legal sense, because many managers confuse it with general unfairness or conflict.
Workplace discrimination occurs when a person receives unfavourable treatment because of a protected attribute, rather than because of their performance or conduct.
Under the Fair Work Act 2009 (Cth), employers cannot take adverse action against an employee or job applicant because of the following protected attributes:
- Race or colour
- Sex or gender identity
- Sexual orientation
- Age
- Physical or mental disability
- Marital or family status
- Pregnancy or breastfeeding
- Religion
- National extraction or social origin
- Intersex status
- Family or carer responsibilities
- Being subjected to family and domestic violence
Australia also has four separate federal anti-discrimination laws: the Racial Discrimination Act 1975, the Sex Discrimination Act 1984, the Disability Discrimination Act 1992, and the Age Discrimination Act 2004. Each state and territory adds its own layer of protection on top of these.
As a manager, you operate within all these frameworks simultaneously. That is a lot to keep track of, which is exactly why reliable training and systems matter so much.
Direct vs Indirect Discrimination: Know the Difference
This distinction trips up many managers, so it is worth spending a moment here.
Direct discrimination happens when someone treats a person less favourably because of a protected attribute. A classic example: not promoting an employee because she is pregnant or refusing to hire someone because of their ethnic background.
Indirect discrimination is trickier. It happens when a seemingly neutral workplace policy or practice puts people with a protected attribute at a significant disadvantage, even if that was never the intention.
For example, requiring all employees to work weekends without exception might seem fair on the surface. But if this disproportionately disadvantages employees who observe the Sabbath or other religious days of rest, it could amount to indirect discrimination unless the requirement is objectively justified.
The takeaway? Good intentions are not a defence. You need to actively examine your policies, not just your actions.
Why Managers Bear a Specific Responsibility
Here is something that surprises many people: managers can be personally liable for discrimination in some circumstances.
Under the Sex Discrimination Act 1984, particularly following the 2023 Respect at Work reforms, organisations now carry a positive duty to take reasonable and proportionate steps to eliminate sexual harassment, sex discrimination, and victimisation from the workplace. This is no longer reactive. You cannot simply wait for a complaint to arrive and then respond. You are expected to prevent it.
The Australian Human Rights Commission has released seven key standards that organisations must meet to discharge this duty. These include leadership responsibilities, meaningful training and education, robust policy frameworks, and genuine systems for monitoring and reporting.
As a manager, you are the frontline of that duty. When you turn a blind eye to discriminatory behaviour or, worse, participate in it, you expose yourself, your team, and your organisation to serious legal and financial consequences.
Breaches of the Work Health and Safety Act can result in fines of up to $3 million. Breaches of the Privacy Act can cost up to $1.7 million. Add the reputational damage, staff turnover, and legal fees, and the cost of ignoring discrimination becomes very real, very fast.
How to Respond When an Employee Reports Discrimination
This is where many managers stumble. Someone walks into your office and tells you they have been discriminated against. What do you do?
Step 1: Listen without judgment
Resist the urge to immediately fix, dismiss, or minimise. The first thing an employee needs is to feel genuinely heard. Thank them for coming to you. Make it clear you are taking them seriously.
Step 2: Take the complaint seriously, regardless of your initial reaction
You might personally think the complaint is exaggerated. That does not matter. Your job at this point is not to determine guilt; it is to begin a proper process. Dismissing a complaint without any investigation can itself become the subject of a formal claim.
Step 3: Document everything from the start
Write down what the employee told you, including dates, times, names, and specific incidents they described. Keep this documentation secure and confidential. These records matter enormously if the complaint escalates.
Step 4: Notify HR and leadership
Unless you are the HR manager yourself, loop in your HR team and relevant senior leadership immediately. In smaller organisations without a dedicated HR function, this might mean escalating directly to the business owner or seeking external HR advice.
Step 5: Protect the complainant from victimisation
This is critical and often overlooked. Under Australian law, an employee who raises a discrimination complaint has the right not to be treated adversely because of that complaint. If the complainant starts experiencing social exclusion, performance management that appeared out of nowhere, or changes to their role after speaking up, that is victimisation, and it is unlawful.
Step 6: Begin a formal investigation process
The investigation should be conducted by someone who has no personal involvement in the matter. The respondent, the person accused, must be given a fair opportunity to respond to the allegations. The process must be thorough, impartial, and documented at every step.
Step 7: Communicate the outcome appropriately
Both parties should receive an outcome, even if the details you share with each are limited by confidentiality. If the complaint is substantiated, take clear action. If it is not, document why and ensure both parties understand what happens next.
Common Mistakes Managers Make and How to Avoid Them
Treating the complaint as a personality conflict
Not every disagreement is discrimination, but not every discrimination complaint is just a personality clash either. Do not assume one or the other before completing a proper process.
Gossiping or sharing details with colleagues
Confidentiality is not optional. If the details of a discrimination complaint start circulating within the team, you have created new legal exposure and have almost certainly damaged workplace trust beyond repair.
Failing to act quickly enough
Delay sends a message. When employees see a complaint go unresolved for weeks or months, they conclude that the organisation does not really care. And sometimes, they are right.
Trying to mediate without proper authority
Informal resolution can work in some circumstances, but it should never be used as a shortcut to avoid proper investigation. If you push two employees to “shake hands and move on” without addressing the underlying conduct, you have not resolved anything; you have buried it.
Not keeping records
If a discrimination claim reaches the Fair Work Commission or the Australian Human Rights Commission, your documentation will be scrutinised closely. No records means no evidence of a fair process, and that works against you.
Building an Anti-Discrimination Culture as a Manager
Responding to complaints is reactive. The managers who do this well spend far more energy on prevention. Here is what building a genuinely discrimination-free team looks like in practice.
Set Clear Expectations from Day One
Your team should know exactly what behaviours are acceptable and what are not from the moment they join. This starts with a well-written, plain-English anti-discrimination policy. Not a 40-page legal document that nobody reads. A clear, accessible statement that people understand.
Model the Behaviour You Expect
Managers who make off-colour jokes, allow “banter” that targets someone’s background, or dismiss concerns with phrases like “she’s too sensitive” create a culture where discrimination thrives. Your team takes its cues from you. Lead accordingly.
Create Multiple Channels for Reporting
Some employees will not feel comfortable raising concerns directly with their manager, especially if the manager is part of the problem. Ensure your organisation has an HR contact, an anonymous reporting option, or access to an external whistleblower service so that people always have a safe path forward.
Review Your Processes Regularly
Recruitment criteria, performance review frameworks, promotion decisions, and roster structures can all contain hidden bias. Schedule regular reviews of your processes with fresh eyes. Ask yourself honestly: Does this policy disadvantage anyone based on a protected attribute?
Celebrate Genuine Diversity
This is not about themed cupcakes for cultural events (although, honestly, nobody complains about cupcakes). It is about making real space for diverse perspectives in decision-making, ensuring your hiring process actively reduces bias, and recognising the genuine value that different lived experiences bring to your team.
How Sentrient Supports Managers with Workplace Discrimination Training
Knowing what to do is one thing. Making sure every person in your organisation knows what to do is another challenge entirely.
This is where Sentrient comes in. Founded in Melbourne in 2016, Sentrient is one of Australia’s fastest-growing and most trusted workplace compliance training providers. Their platform is used by businesses across Australia and New Zealand, from small teams to large organisations.
Sentrient offers legally endorsed online compliance courses, written in partnership with Mills Oakley Lawyers in Australia and Simpson Grierson Lawyers in New Zealand. These courses cover the legislation for all states and territories, so whether your team is in Brisbane, Perth, or regional Victoria, the content applies to them.
For managers dealing with discrimination specifically, Sentrient offers dedicated courses on:
- Equal Employment Opportunity (EEO): covering federal and state anti-discrimination legislation
- Workplace Bullying: helping teams identify and report problematic behaviour
- Sexual Harassment: with a specific manager version that includes real-world case studies
- Diversity and Inclusion: going beyond legislation to build genuinely inclusive teams
- Work Health and Safety: including the legal obligations of managers in creating safe workplaces
Each course takes 15-20 minutes to complete. That is intentional. Sentrient’s research shows that most compliance training fails because it is too long, too complicated, and too disconnected from real workplace scenarios. Their approach achieves completion rates up to 220% higher than the industry average and a reported time saving of up to 67% compared to traditional compliance programs.
The platform can be deployed via Sentrient’s own Compliance Management System or its HR Platform or integrated into your existing Learning Management System (LMS) or HRIS via a SCORM-compliant connection.
For managers, there is value in the dedicated manager versions of these courses, which include scenario-based case studies, exactly the kind of practical preparation you need before a complaint lands on your desk.
Organisations that adopt regular compliance training through platforms like Sentrient are also three times more likely to build a high-trust organisation, according to Sentrient’s own data. That is not a small thing. Trust is the foundation of team performance, retention, and your ability to attract good people.
If your organisation does not currently have a structured anti-discrimination training program, Sentrient is an obvious place to start. You can request a free demo and explore the platform at no upfront cost.
What Happens If Discrimination Is Not Resolved Internally?
Sometimes internal processes fail, or an employee does not trust that the internal process will be fair. In those cases, Australian law provides several external avenues.
The Fair Work Commission (FWC) handles general protections claims, including adverse action taken for discriminatory reasons under the Fair Work Act. An employee can lodge an application with the FWC within 21 days of a dismissal, and the process can move quickly.
The Australian Human Rights Commission (AHRC) handles complaints under federal anti-discrimination legislation. A complaint to the AHRC must generally be lodged within 24 months of the alleged discrimination occurring.
State and Territory Anti-Discrimination Bodies, such as the Victorian Equal Opportunity and Human Rights Commission, the NSW Anti-Discrimination Board, or the Queensland Human Rights Commission, handle complaints under state-level legislation.
The cost reforms introduced in 2024 also gave complainants greater financial protection. If a complainant succeeds on any ground, the respondent may be required to pay the applicant’s costs. This has made it more accessible for employees to pursue legitimate claims.
As a manager, this means the stakes for getting it wrong have never been higher. A complaint that reaches any of these bodies reflects poorly on the organisation and can be costly financially, operationally, and reputationally.
A Quick Reference Checklist for Managers
Use this checklist as a practical starting point for managing discrimination in your workplace:
- You have read and understand your organisation’s anti-discrimination policy
- Your team completed EEO and anti-discrimination training in the past 12 months
- You have a clear process for receiving and documenting discrimination complaints
- You know who in your organisation handles formal HR investigations
- Your recruitment, performance, and promotion processes have been reviewed for potential bias
- You know the external bodies employees can contact if internal processes fail
- You have reviewed your workplace roster and operational policies for potential indirect discrimination
- You have completed a manager-specific compliance training course
If there are items on that list you cannot tick, that is your starting point. Not a judgment, a plan.
Frequently Asked Questions (FAQs)
What are the different types of workplace discrimination in Australia?
Australian law recognises two main types. Direct discrimination happens when someone treats a person less favourably because of a protected attribute for example, paying a woman less than a man for the same work. Indirect discrimination happens when a neutral-looking policy puts people with a protected attribute at a significant disadvantage, for example, requiring all staff to be clean-shaven, which may disadvantage Sikh employees. Both types are unlawful under the Fair Work Act 2009 and relevant anti-discrimination legislation across federal and state levels.
What should a manager do when an employee reports workplace discrimination?
Listen carefully and take the complaint seriously without making immediate judgments. Document everything, dates, specific incidents, and names of any witnesses. Notify HR or senior leadership immediately. Protect the complainant from victimisation. Begin a formal investigation conducted by someone without a conflict of interest. Provide both parties with an appropriate outcome at the conclusion of the process. Throughout, maintain strict confidentiality to protect everyone involved.
What are a manager’s legal obligations under Australian discrimination law?
Managers must ensure they do not take adverse action against an employee or job applicant because of a protected attribute. Under the positive duty introduced by the Respect at Work reforms, managers and organisations must also take proactive, reasonable steps to prevent discrimination and sexual harassment, rather than just respond to it once it occurs. The Australian Human Rights Commission has published seven key standards to guide organisations in meeting this duty, including meaningful training, clear policies, and active monitoring.
Can a manager be personally liable for workplace discrimination?
Yes, in some circumstances. Under federal and state anti-discrimination laws, individuals, including managers and colleagues, can be named as respondents in discrimination complaints, not just the employing organisation. Aiding or encouraging unlawful discrimination or failing to prevent it when you had the authority and obligation to do so can expose you to personal liability. This is one of the strongest reasons to take every complaint seriously and act within proper processes.
How do you investigate a discrimination complaint as a manager?
A proper investigation should be conducted by someone without a conflict of interest, ideally an HR professional or an independent external investigator, for serious complaints. Both the complainant and the respondent must have the opportunity to present their account. The investigator should gather and review any relevant documents, emails, rosters, or other records. Witness accounts should be taken separately. The process must be documented thoroughly at every step. Any findings should be communicated to the relevant parties with appropriate confidentiality protections in place.
What is the difference between direct and indirect discrimination in the workplace?
Direct discrimination is explicit; you treat someone less favourably because of who they are. Indirect discrimination is a structural workplace policy or rule that seems neutral on the surface but disproportionately disadvantages a group of people who share a protected attribute. Requiring fluent written English as a condition for a role that does not involve writing, for example, could amount to indirect discrimination based on national origin or disability. The key test is whether the requirement is reasonably justified given the genuine demands of the role.
What anti-discrimination training do managers in Australia need?
Australian managers should complete training that specifically covers their legal obligations under the Fair Work Act 2009 and relevant state anti-discrimination legislation; their duty to prevent and respond to discrimination; how to handle complaints properly; and how to recognise both direct and indirect discrimination. Manager-specific training through legally endorsed providers such as Sentrient is ideal, as these programs include real-world case studies tailored to management responsibilities. The Australian Human Rights Commission recommends that training be a regular, not one-off, part of organisational practice.
How do I create an anti-discrimination policy for my workplace?
An effective anti-discrimination policy should clearly state the organisation’s commitment to a fair workplace, list the protected attributes covered under Australian law, define what discrimination, harassment, and victimisation look like in practice, outline the process for reporting and investigating complaints, and set out the consequences for substantiated breaches. The policy should be written in plain language, reviewed by a legal professional, and communicated to every employee at induction and regularly thereafter. Platforms like Sentrient include ready-made policy templates that can be customised to suit your organisation.
Final Thoughts
Handling workplace discrimination as a manager is genuinely hard. There is no perfect script. The situations are often emotionally charged, the legal landscape is detailed, and the stakes are real.
But the managers who get this right share a few common traits. They take complaints seriously from the moment they are received. They act quickly, document thoroughly, and stay consistent. They invest in proper training for themselves and their teams. And they treat every person in their organisation as someone worth protecting.
If your organisation does not yet have a structured compliance training program, platforms like Sentrient make it genuinely straightforward to get started. Legally endorsed, regularly updated, and designed for real Australian workplaces, it is one of the most practical steps you can take toward building a workplace where discrimination simply has no room to grow.
Your team deserves that. And honestly, so do you.
