Employers that have an Equal Employment Opportunity (EEO) policy attract more diverse workers, promote a healthy workplace culture, and minimise liability in the event of a claim from an employee by taking all reasonable steps to prevent discrimination in the workplace.
An EEO policy is an important statement about your commitment to minimise and eliminate all forms of unlawful harassment, discrimination, and bullying in the workplace. Not only is such conduct against the law, but it can also create a hostile working environment, decrease productivity, and increase absenteeism.
The basic principle behind EEO is the idea that everyone should be treated fairly when they’re considered for various employment decisions.
Which laws protect people from discrimination?
In Australia, national and state laws cover equal employment opportunity and anti-discrimination in the workplace. As an employer, you must understand your rights and responsibilities under human rights and anti-discrimination laws.
In addition to the federal legislation, each state and territory in Australia has equal opportunity and anti-discrimination agencies with statutory responsibilities.
Commonwealth laws and state/territory laws generally overlap. However, the laws apply in different ways and employers must comply with all legislation.
The Australian Human Rights Commission (AHRC) administers and investigates complaints under federal EEO and anti‑discrimination legislation. If a person believes they have been discriminated against in a manner that is prohibited by this legislation, they can lodge a complaint with the AHRC.
Why employers need an EEO policy
An EEO policy should set out how the employer will comply with EEO obligations. The policy should be included in an employee handbook or policy suite and given to all employees as part of the onboarding process. An employer may also hold regular training sessions to ensure employees are aware of their EEO obligations.
Having clear procedures and rules is also a way to make managers and employees aware of acceptable workplace behaviour within your business. In any case of misbehaviour, it will be easier to point to the policy than to refer to a law the employee may not have heard of.
Where businesses do not comply with EEO, they risk having an employee make a claim for breach of discrimination laws. Non-compliant businesses may be held legally responsible for any discrimination, harassment or bullying that occurs in the workplace.
Australian Business Lawyers & Advisors (ABLA) senior associate Sam Cahill says it is best practice for a business to have a policy that clearly prohibits unlawful discrimination, vilification, and harassment at work.
“If an employee engages in unlawful discrimination, vilification or harassment, the business will be able to rely on its policy in taking disciplinary action against the employee, including potential termination of employment,” he said.
“If the business decides to terminate the employee’s employment, the business may be vulnerable to an unfair dismissal claim if it does not have a policy that clearly prohibits unlawful discrimination, vilification, and harassment at work."
Moreover, if a person who is a victim of discrimination, vilification or harassment makes a legal claim, the business may be able to rely on its policy to avoid liability under anti-discrimination law, according to Mr Cahill.
“To do this, the business would need to prove that it took all reasonable steps to prevent its employees from engaging in discrimination, vilification or harassment,” Mr Cahill said.
“This may be a very difficult task if the business does not have a written policy dealing with this issue.
"By not having a policy, a business is generally more exposed to liability under anti-discrimination law.”
Need further guidance on the EEO policy?
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