Workplace Bullying vs Reasonable Management Action: Where's the Line? (2026)
Understand the critical legal distinction between workplace bullying and reasonable management action in Australia. Learn the FWC 5-factor test, stop-bullying orders under s789FC Fair Work Act, how to document bullying, and what management actions are legally protected.
The legal definition of workplace bullying in Australia
Under s789FD of the Fair Work Act 2009, a worker is bullied at work if an individual or group of individuals repeatedly behaves unreasonably towards them, and that behaviour creates a risk to their health and safety. Both elements must be present: the behaviour must be repeated (not a single incident) and it must be unreasonable. The Fair Work Commission has identified common examples of bullying behaviour: aggressive or intimidating conduct, belittling or humiliating comments, spreading malicious rumours, teasing or practical jokes, deliberately excluding someone from work activities, unreasonable work demands that set someone up to fail, withholding information necessary for effective work performance, and displaying offensive material. Importantly, the legislation explicitly provides that reasonable management action carried out in a reasonable manner is not bullying, even if the worker feels upset or stressed by it. This carve-out is the single most contested issue in bullying cases — employers routinely argue their actions were reasonable management, while workers argue they crossed the line. The distinction hinges on what is 'reasonable' in all the circumstances, which the FWC assesses on a case-by-case basis.
What counts as reasonable management action?
Reasonable management action includes a wide range of legitimate employer conduct: performance management and feedback (including negative feedback), issuing lawful and reasonable directions, setting performance goals and KPIs, allocating and re-allocating work, rostering and changing rosters for operational reasons, implementing organisational change, placing an employee on a performance improvement plan (PIP), investigating allegations of misconduct, taking disciplinary action (warnings, demotion, termination) where warranted, denying leave requests for legitimate business reasons, and restructuring that results in role changes. The key qualifier is 'carried out in a reasonable manner.' A manager can give tough feedback, but screaming abuse at an employee in front of their colleagues is not reasonable. An employer can restructure, but targeting one person's role as a pretext for personal animosity is not reasonable. The FWC examines both the substance of the action (was it a legitimate management decision?) and the process (was it done fairly, transparently, and with proper notice?). In Mac v Bank of Queensland [2015], the FWC held that even robust and challenging performance management was reasonable where it followed proper processes and was aimed at genuinely improving performance.
The FWC's 5-factor test for bullying applications
When a worker applies for a stop-bullying order under s789FC of the Fair Work Act, the FWC considers several key factors in determining whether bullying has occurred. First, was the behaviour repeated? A single incident, no matter how serious, does not meet the statutory definition — although a single incident can still constitute harassment, discrimination, or a breach of WHS obligations through other legal pathways. Second, was the behaviour unreasonable? The test is objective — would a reasonable person in the worker's position consider the behaviour unreasonable? Third, did the behaviour create a risk to health and safety? This includes both physical and psychological health. Fourth, was the conduct reasonable management action carried out in a reasonable manner? If yes, it is excluded from the definition of bullying. Fifth, is there a risk that the bullying will continue? The FWC can only make a stop-bullying order if it is satisfied the worker has been bullied and there is a risk the bullying will continue. If the worker has already left the workplace or the alleged bully has been removed, the FWC may decline to make an order on the basis that the risk has passed.
Examples: where the line falls in practice
FWC decisions illustrate the boundary. In SB v Mineral Resources Ltd [2023], the FWC found that a supervisor who repeatedly yelled at a worker in front of colleagues, made demeaning comments about their competence, and set unrealistic deadlines with the apparent intent to induce resignation had engaged in bullying — the conduct went beyond legitimate performance management. Conversely, in Roberts v VIEW Launceston [2015], the FWC found that a manager who placed an underperforming employee on a structured PIP, required regular meetings, and documented concerns was carrying out reasonable management action, even though the employee experienced stress. In CF v Company A [2023], a worker alleged bullying when their roster was changed and their preferred duties were re-allocated. The FWC held this was reasonable management action — employers have a legitimate right to organise work. However, the FWC has also found that repeatedly micromanaging a single employee to a degree not applied to peers, combined with social exclusion and public criticism, can cross the line from management action into bullying even where each individual action might seem minor in isolation.
How to apply for a stop-bullying order at the FWC
If you believe you are being bullied at work, you can apply to the Fair Work Commission for a stop-bullying order using Form F72. The application is free — there is no filing fee. You must be a worker who is currently employed at the workplace (including employees, contractors, subcontractors, outworkers, apprentices, trainees, students on work experience, and volunteers). You need to describe the bullying behaviour, when it occurred, who was involved, what steps you have already taken to resolve the issue, and why you believe there is a risk it will continue. Once lodged, the FWC will typically schedule a conference or hearing within 14 days — bullying applications are treated as urgent matters. The FWC can make any order it considers appropriate to prevent the bullying from continuing, except an order to pay compensation or an order to dismiss the bully. Common orders include directing the employer to implement or review its anti-bullying policy, requiring the employer to monitor the situation, and directing specific individuals to cease certain behaviours. Importantly, the FWC cannot award compensation for past bullying — only stop it going forward. For compensation, you would need to pursue a workers compensation claim or a general protections application.
How to document workplace bullying
Thorough documentation is essential if you want to pursue a bullying claim. Keep a detailed diary recording each incident: the date and time, what happened, what was said (as close to verbatim as possible), who was present, how it made you feel, and what you did in response. Save any written evidence — emails, text messages, Teams or Slack messages, performance reviews, letters, and memos. If the bullying involves exclusion from meetings or information, note the dates and what you were excluded from. Keep copies of your job description, roster, and any changes made to your duties. If you raised concerns with your manager, HR, or a colleague, record the date, who you spoke to, and their response. If you saw a doctor, psychologist, or counsellor about the impact, keep records of appointments and any medical reports. Witness statements can also be valuable — if colleagues observed the behaviour, ask whether they are willing to confirm what they saw. Store your documentation securely outside the workplace (for example, in a personal email account or cloud storage) so you retain access if you are suddenly locked out of work systems.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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