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Sunday, November 23, 2025

New damages benchmark to deter workplace sexual harassment - Dentons

The Federal Court’s decision in Magar v Khan [2025] FCA 874 marks a pivotal moment in Australian employment law, reinforcing the community’s intolerance for workplace sexual harassment and sex-based discrimination. In awarding a record-breaking A$305,000 award of damages to Ms Magar, the Court not only recognised the profound psychological and economic harm suffered but also sent a clear message to employers: passive compliance is no longer acceptable. This case note explores the factual background, legal principles and broader implications of the judgment, including enforcement of the positive duty under the Sex Discrimination Act 1984 (Cth), the legal risks of victimisation and the heightened responsibilities owed to vulnerable employees.

The recent decision in Magar v Khan [2025] FCA 874 has sent a message to employers in Australia: ignoring sexual harassment and sex-based discrimination won’t be tolerated by Courts. The Federal Court’s ruling, which saw a record-breaking A$305,000 awarded to a young migrant worker, not only sets a new benchmark for damages but also provides critical lessons on an employer’s legal obligations and the real-world costs of a toxic and harassment filled workplace culture.

Case Note: The Facts of Magar v Khan [2025] FCA 874

The case involved Ms Magar, a young Nepalese student working at a prominent fast-food franchise, who was subjected to significant sexual harassment by her manager, the franchise-owner, Mr Khan, spanning across her...



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