NSW Workplace Bullying Fines 2026: $99K/Breach

In March 2026 the NSW Government introduced the Work Health and Safety Amendment (Workplace Bullying) Bill 2026 to the Legislative Assembly. It passed its first reading on 13 March 2026 and is currently before a parliamentary committee. If passed in its current form, it will fundamentally change how workplace bullying is dealt with in New South Wales.

The key change: workplace bullying would become a specific enforceable provision under the Work Health and Safety Act 2011 (NSW), with criminal penalties attached. At present, bullying is dealt with primarily through general WHS duty of care provisions and via Fair Work Commission stop-bullying orders. The new bill adds a dedicated offence with dedicated fines.

What the bill does:

• Inserts a new offence of "failing to prevent workplace bullying" into the NSW WHS Act
• Creates tiered penalties for individuals and corporations
• Gives SafeWork NSW inspectors specific power to investigate bullying complaints as WHS breaches
• Requires employers with 20+ employees to have a documented bullying prevention policy
• Creates a mandatory reporting pathway for serious bullying incidents
• Establishes a new SafeWork NSW Bullying Complaints Unit to triage and investigate reports
• Provides for victim compensation and workplace remediation orders

It's worth naming what this is not. It is not a replacement for the Fair Work Commission's stop-bullying order jurisdiction (Part 6-4B of the Fair Work Act). The FWC pathway continues alongside the new SafeWork NSW pathway. Workers will effectively have two options: the civil FWC stop-bullying order process, and the new criminal WHS enforcement process. We'll come back to that choice later.

The bill was introduced against the backdrop of recent high-profile cases and sustained pressure from the NSW Council of Civil Liberties, Unions NSW, and the Australian Institute for Industrial Psychology. Similar bills have been floated in Queensland and Victoria but neither has advanced as far as NSW.

The dollar amounts are what have driven headlines, and they're genuinely significant. The bill sets penalties based on NSW WHS Act Category 3 offence levels, indexed to penalty units.

Tier 1 — Failure to have a compliant bullying prevention policy (employers 20+):

• Individual (e.g., director or nominated officer): up to 50 penalty units ($5,525)
• Corporation: up to 250 penalty units ($27,625)

Tier 2 — Failure to respond to a reported bullying incident:

• Individual: up to 100 penalty units ($11,050)
• Corporation: up to 500 penalty units ($55,250)

Tier 3 — Engaging in or permitting workplace bullying (the major offence):

• Individual: up to 180 penalty units ($19,886)
• Corporation: up to 900 penalty units ($99,432)

Tier 4 — Reckless conduct causing serious psychological harm:

• Individual: up to 1,000 penalty units ($110,500) and/or 2 years imprisonment
• Corporation: up to 5,000 penalty units ($552,500)

A penalty unit in NSW is currently $110.50 and is indexed annually on 1 July. The bill explicitly ties the fines to penalty units rather than dollar amounts so that they adjust with inflation automatically.

Importantly, the tiered structure means an employer can face multiple fines for a single incident. A company that fails to have a compliant policy, then fails to respond to a complaint, then permits ongoing bullying could face Tier 1 + Tier 2 + Tier 3 penalties concurrently. That maxes out at $99,432 + $55,250 + $27,625 = $182,307 per course of conduct. And that's before any Tier 4 charges if psychological harm results.

The individual penalties matter just as much. Directors, managers and named officers can be personally liable. This changes the calculation for how senior people deal with bullying complaints in their teams. "I wasn't aware" or "HR was handling it" may no longer be a safe response.

Australia already has a workplace bullying remedy through the Fair Work Commission. So why introduce a new NSW framework? The answer is that the two systems do fundamentally different things, and a lot of workers and employers have found the existing FWC process inadequate.

Existing system: FWC stop-bullying orders (Part 6-4B, Fair Work Act 2009)

• Civil remedy only
• No fines or criminal penalties
• Available while the worker is still employed in the workplace where bullying occurred (you lose jurisdiction once you resign)
• The FWC can make orders requiring the employer/bully to stop specific behaviours
• Decision usually issued within 2-3 months of application
• Requires the worker to prove repeated unreasonable behaviour creating a risk to health and safety
• Very few applications succeed: fewer than 10% of applications result in an order being made
• No compensation or monetary remedy
• Limited to preventing future behaviour: cannot address past harm

Proposed NSW system: WHS enforcement

• Criminal remedy (prosecutable offences)
• Significant fines and, in serious cases, imprisonment
• Jurisdiction continues even after the worker has left employment
• Investigation led by SafeWork NSW (not the worker)
• Lower evidential threshold: WHS-style "reasonably practicable" test rather than FWC's higher "serious risk" threshold
• Remediation orders can require compensation, counselling costs, and workplace reforms
• Addresses past harm, not just future prevention
• Deterrent effect through fines that hit the employer's bottom line

The practical difference is enormous. Under the current FWC system, a bullied worker who has been driven to resign has no remedy at all through stop-bullying orders (the FWC loses jurisdiction once they leave). Under the NSW bill, that worker can make a complaint to SafeWork NSW, which can investigate regardless of whether the worker is still employed at the workplace, and can pursue the employer for significant fines.

Workers will be able to choose which pathway to use, or pursue both simultaneously. The FWC stop-bullying order is fast and useful for workers who want to stay in the job. The SafeWork NSW pathway is slower but more powerful, particularly for workers who have already left or who want to see real consequences for the conduct.

The bill adopts the existing Safe Work Australia definition of workplace bullying, which is the definition used across Australian WHS law and by the Fair Work Commission. So this isn't a new test. It's an existing test with new consequences.

Workplace bullying is: "repeated, unreasonable behaviour directed towards a worker or group of workers, that creates a risk to health and safety."

Breaking that down:

• Repeated: A single incident is usually not bullying, no matter how unpleasant. The behaviour must be ongoing or part of a pattern. One heated argument over a project deadline is not bullying. Three months of being undermined in team meetings is.
• Unreasonable behaviour: Conduct that a reasonable person, taking into account the circumstances, would see as unreasonable. This is a broad concept and deliberately so. It includes verbal abuse, intimidation, humiliation, public criticism, exclusion, setting impossible deadlines, withholding information needed to do the job, and sabotaging someone's work.
• Directed at a worker or workers: Either individually or as part of a group.
• Risk to health and safety: This includes psychological injury, not just physical. Anxiety, depression, stress-related illness all count.

What is NOT workplace bullying:

• Reasonable management action, carried out in a reasonable way. This is the big carve-out. Performance managing someone, giving critical feedback, allocating work, disciplining for misconduct. All of these are legitimate even if the employee finds them stressful
• A single incident of conflict, disagreement, or frustration
• Differences of opinion or constructive criticism
• Consequences of genuine operational decisions (e.g., restructures, role changes)

The "reasonable management action" defence is where most workplace bullying cases are won and lost. Employers will almost always argue that the conduct complained of was reasonable management action. The question for investigators and courts is whether the manner of that action was reasonable, not just whether the action itself was within management's rights. A manager who has the right to performance manage someone, but does so through public humiliation, loud outbursts, and sarcastic emails, is not engaged in reasonable management action.

If the bill passes in its current form, the reporting pathway will be as follows. SafeWork NSW has confirmed that it's already scoping up the Bullying Complaints Unit and expects to be operational within 60 days of the bill becoming law.

Step 1: Document everything. Before you report, gather your evidence. Dates, times, what was said, who witnessed it, what you did in response, how it affected you. Keep emails, text messages, and any written records. Note any impact on your health: GP visits, time off work, medications.

Step 2: Internal reporting first (unless unsafe). Where possible, raise the issue internally first through your employer's bullying policy or HR process. SafeWork NSW will want to see that you gave the employer an opportunity to respond. If it's not safe to raise internally (e.g., the bully is your manager and HR is unresponsive, or you've already tried and been ignored), you can skip this step.

Step 3: Submit a complaint to SafeWork NSW. Under the proposed system, you'll be able to lodge a complaint via:

• Online portal at safework.nsw.gov.au (new dedicated form)
• SafeWork NSW phone line (13 10 50)
• In-person at any SafeWork NSW office
• Via a union representative

Step 4: Investigation. SafeWork NSW inspectors will assess the complaint and decide whether to investigate. Serious matters will be allocated to specialist bullying investigators. The inspector can enter the workplace, interview witnesses, and require documents. The employer is legally required to cooperate.

Step 5: Outcome. The possible outcomes include:

• No further action (if complaint doesn't meet threshold)
• Informal resolution with employer agreement
• Improvement notice issued to employer
• Prohibition notice (for imminent serious harm)
• Prosecution in the NSW Industrial Relations Commission or District Court
• Remediation order (compensation, workplace reforms, counselling costs)

Critical point: you don't have to choose between the SafeWork NSW pathway and the Fair Work Commission stop-bullying order. You can pursue both if you're still employed at the workplace. Just be aware that the two processes may run on different timetables and can sometimes complicate each other.

If you're an employer in NSW, the time to prepare is not when the bill commences. It's now. Here's what the new framework will effectively require.

1. Documented bullying prevention policy. Required for employers with 20+ employees. The policy must:

• Define workplace bullying in line with the statutory test
• Set out reporting mechanisms (including anonymous options)
• Describe the investigation process
• Identify the responsible officer(s)
• Include consequences for substantiated bullying
• Be accessible to all staff (in their language where required)
• Be reviewed annually

2. Training. Managers and supervisors will be expected to have documented training on recognising and responding to bullying. Generic "respect at work" training will likely not be sufficient on its own: specific bullying recognition and response training will be expected.

3. Reporting pathway. The bill requires employers to establish an internal reporting pathway that does not rely solely on reporting to the alleged bully's direct supervisor (which happens more often than you'd think).

4. Investigation capability. Employers will need to be able to investigate complaints promptly. This might mean internal HR capability, external investigators on retainer, or both. The bill imposes a 21-day initial response obligation.

5. Record-keeping. All complaints, investigations, and outcomes must be documented and retained for a minimum of 7 years. SafeWork NSW will be able to request these records during inspections.

6. Cultural review. Smart employers are already conducting workplace culture reviews in anticipation of the bill. An external audit can identify hot spots before they become prosecutable breaches. Industries with historical bullying issues (hospitality, construction, emergency services, law, medicine) are particularly exposed.

The compliance investment is not trivial for small and mid-sized businesses. Expect to budget $5,000-$20,000 for initial policy, training and investigation readiness for a 20-50 employee business. For large employers (500+) the budget is typically $50,000-$200,000 including external cultural review.

Set against the maximum fine of $99,432 per Tier 3 offence, plus potential Tier 4 exposure to $552,500 and personal director liability, the investment pencils out.

Let's set realistic expectations on the timeline. Bills in the NSW parliament can move quickly or glacially depending on political will and committee workload. Here's the current picture.

Where the bill is now:

• 13 March 2026: First reading passed in Legislative Assembly (DONE)
• Currently before the Standing Committee on Law and Justice for consideration
• Committee report expected by 15 May 2026
• Second reading debate scheduled for June 2026 session

Expected path forward:

• May 2026: Committee report with recommendations
• June 2026: Second reading and consideration in detail
• July-August 2026: Legislative Council (upper house) consideration
• September 2026: Assent and gazettal if passed
• January 2027 (expected): Commencement of policy and training requirements (transitional 6-month period)
• July 2027: Full enforcement of fines and criminal penalties

There are three main variables that could speed up or slow down this timeline.

Opposition amendments: The NSW Liberal Party has indicated broad support for the bill's principles but is pushing for several amendments, including a higher threshold for Tier 3 prosecution and a carve-out for small businesses (under 10 employees). If the government accepts these, the bill could pass quickly. If not, it could get bogged down in committee.

Business lobbying: Business NSW, the Australian Hotels Association (NSW) and the NSW Business Chamber have all expressed concerns about the compliance burden on small business. Expect significant lobbying around exemptions and higher thresholds for smaller employers.

Union pressure: Unions NSW is pushing for the bill to be passed in its current form and for commencement to be accelerated to Q3 2026. The NSW Nurses and Midwives' Association, ASU and United Workers Union have all made submissions supporting the bill.

Net assessment: expected commencement Q3 2026 for the policy requirements, with full enforcement from mid-2027. Workers who are currently experiencing bullying should not wait for the bill to become law: the existing Fair Work Commission stop-bullying order pathway and common law damages claims remain available now.

Use our unfair dismissal calculator to assess whether your situation might also qualify for a constructive dismissal or general protections claim.