Personal Liability under the Fair Work Act

The General Protections regime is set out in Part 3-1 of the Fair Work Act 2009 (Cth) (the Act), which aims to protect all individuals’ workplace rights. If an employer engages in conduct that amounts to “adverse action” against an employee, an employer may contravene this part of the Act. Adverse action includes actions like dismissing an employee, altering the position of an employee to their detriment or discrimination.

We have seen an increase in General Protections applications where the applicant is not only bringing a Fair Work Claim against their employer but singling out individuals in the organisation. These individuals are in roles such as owners, directors, managers and supervisors.

Section 550(2) of the Act states that an individual can be liable for a contravention committed by another party (the employer) if they have:

  1. Aided, abetted, counselled, or procured the contravention;
  2. Induced the contravention, whether by threats, promises, or otherwise.
  3. Been in any way, by act or omission, directly or indirectly, knowingly concerned in or party to the contravention; or
  4. Conspired with others to effect the contravention.

Personal liability arises when the individual has actively participated in or facilitated the contravention. The implications of personal liability are significant, as individuals found to have contravened the Act may incur financial penalty, reputational damage, or other consequences.