By Rose Byass

Bullying in workplaces is often thought of as overt aggression or harsh words. But in reality, the most insidious forms are psychological and systemic: coordinated exclusion, micro‑management, information withholding, and punitive processes designed to intimidate. Alarmingly, when victims finally speak up, organisations — particularly HR or Employee Relations teams — often act as though they are the victims, undermining real accountability.

Defining Workplace Bullying: It’s Not Just Yelling

Under the Fair Work Act 2009 (Cth) Part 6‑4B, bullying is:

“repeated unreasonable behaviour ... that creates a risk to health and safety.” 

Healthy management actions are lawful and reasonable; systemic bullying is neither. The definition includes:

“intimidation, coercion, threats, humiliation, shouting… isolation, freezing‑out, ostracism, mobbing…” 

That last trio—isolation, freezing‑out, ostracism—are hallmark tactics of systemic bullying.

When HR and ER Become the Culture’s Root Cause

🔍 From Safeguard to Gatekeeper

HR and ER teams are supposed to shield staff from harm. Yet in many cases, they:

• Downplay requests for assistance;
• Reframe serious allegations as “interpersonal conflicts”;
• Close investigations prematurely;
• Protect line managers by shifting blame to the victim.

This is no oversight. It is an institutional defence mechanism.

Structural Bullying by Design

A study from UniSA revealed:

“Organisational structures, not individuals, are to blame for workplace bullying … embedded in day‑to‑day practices.” 

When HR declines to escalate genuine complaints or reassign investigators, they become the catalyst for continued harm.Imagine: you report persistent public shaming, exclusion from key meetings, and micromanagement. Instead of pausing the process, HR allows line managers to continue. That’s not neutrality—it’s complicity.

Psychological Harm: A Hidden Cost

Safe Work Australia tracks claims involving mental stress. Their latest report shows:

• A worrying rise in claims linked to poor workplace culture 

Victims of systemic bullying often experience:

• PTSD, anxiety, depression;
• Absenteeism, diminished performance, isolation;
• Career derailment and lost income.

One calculation estimates that low psychosocial safety climates across Australia cost $6 billion/year in absenteeism and presenteeism 

The Real Cost of Psychological Harm: Statistics That Can’t Be Ignored

Recent data from Safe Work Australia highlights the devastating impact of workplace psychological harm. In 2021–22, 37% of all serious mental stress claims were directly linked to harassment and bullying. Workers who experienced psychological injury took a median time off work of 30.7 weeks, more than four times the recovery time for physical injuries. These injuries also cost employers significantly more—averaging $55,270 per claim, compared to $13,883 for physical claims. Psychological harm isn’t just a “soft” issue—it’s a leading cause of lost productivity, absenteeism, compensation claims, and long-term trauma. For the individual, the consequences are far more personal: PTSD, anxiety, depression, and sometimes total withdrawal from the workforce. And for employers, failing to address it is no longer just negligent—it’s increasingly legally and financially indefensible.

High‑Profile Australian Cases: Victims Who Took On Big Employers

Federal Court Awards $5.2M – TechOne Executive (Roohizadegan)

In 2020, a senior executive at TechOne faced bullying by Microsoft‑style management. His General Protections claim under the Fair Work Act succeeded—resulting in a $5.2 million judgment. The court emphasised that had proper investigations occurred, the outcome could have been avoided.

Hawkesbury Race Club – $2.25M for Bullying (2022)

The Federal Court found the CEO had engaged in escalating bullying that “effectively destroyed” the employee’s mental health, ordering $2.25M in penalties and compensation.

Victorian Supreme Court – $600K to Monash Law Book Employee

In Swan v Monash Law Book Co-operative, the court awarded nearly $600,000 because the employer failed to respond appropriately to five years of bullying.

General Protections Payout – $2.8M (Unknown Employer)

A Federal Court ruling ordered one of the largest ever pay-outs (~$2.8M) after an employee’s life was “destroyed” by CEO bullying.

Melb. Construction Worker – $1.36M (Winslow Constructors, VIC VSC 728)

F/S district court held a female labourer suffered psychiatric injury from systemic abuse and awarded $1.36M.

HR’s Role: Structural Bullying Enabler

In Anne Pilbrow [2020] FWC 2458, HR’s inaction after repeated bullying allegations was judged to exacerbate the problem. The Commission warned:

“failures by an HR department ... can place the organisation at substantial risk.” 

HR, in these cases, unwittingly becomes an arm of the bullying, denying procedural fairness—even when legal obligations under the Fair Work Act and WHS laws require intervention.

Legislative Framework: Australian Protections

• Fair Work Act 2009
  • Part 6‑4B (s.789FB–FI): FWC may issue orders to stop bullying 
  • General Protections (s.340): prohibits adverse action for exercising workplace rights.
• Work Health and Safety Act 2020 (WA) (and State equivalents): imposes a duty to eliminate psychosocial risks.
• Disability Discrimination Act 1992: requires reasonable adjustments for mental illnesses like PTSD.
• Victoria’s Brodie’s Law (Crimes Act): identifies serious bullying as a criminal offence punishable by up to 10 years jail.

These laws require proactive action. Passive procedures won’t suffice.

Why Cultural Safeguards Fail

Hands‑Off HR

HR rhetoric often ranges from “it’s only personality clash” to “management action was reasonable.” These labels obscure:

• Micro‑behaviour patterns,
• Cumulative psychological harm,
• Failure to prevent escalation.

Procedural Gaps

Bullying claims are often:

1. Downgraded,
2. Closed without findings,
3. Assigned to the same management,
4. Never properly escalated (lack of independence).

These failures are no accident—they are systemic, bureaucratic and legal blind spots.

Shifting the Blame: Corporate “Victimhood”

Organisations routinely:

• Claim policy compliance to dismiss their culpability;
• Emphasise “confidentiality” to shield culture from scrutiny;
• Portray complainants as trouble‑makers abusing procedure.

This narrative benefits management — and HR — while isolating victims.

Turning the Tide: Real Change Models

✔️ Independent Investigation Panels

Cases like TechOne and Hawkesbury highlight the value of third‑party or external investigators, ensuring structural neutrality, not internal bias.

✔️ Leadership Accountability

Research demonstrates that poor Psychosocial Safety Climate is higher in hierarchical, hostile environments. Leaders must be accountable for culture, not just compliance.

✔️ Empowered Employees

Victims must:

• Keep detailed evidence,
• Seek external legal advice early,
• Apply for anti‑bullying orders (FWC s.789FI),
• Use Workers’ Compensation for psychological injury.

✔️ Policy and Training Oversight

WorkSafe and Safe Work Australia stress:

• Clear policies,
• Mandatory investigations,
• CEO‑level support,
• Regular training and audits.

Time for Cultural Reckoning

Ostensibly line managers are blamed, but true accountability starts with HR and ER. Their failure to investigate, escalate, or shield staff signals not negligence — but collusion. Australia's legislative framework provides powerful levers for victims. Employers who pretend to be victims themselves are playing smoke‑and‑mirrors. The law is clear:

Systemic bullying is a breach of duty.
Inaction is complicity.
Denial of procedural fairness is not policy — it’s harm.

By rewriting workplace culture—starting with HR’s role in either protecting staff or perpetuating abuse—organisations can break the vicious cycle. And when they fail, Australian courts and tribunals are increasingly prepared to hold them accountable—personally and financially.

If you are a leader and require a cultural change in your organisation, call Robust Leaders for bespoke consultancy to disrupt toxic and rebuilt with focus.