She settled one claim and signed away another
From 2016 Wendy Leach worked in the electorate office of a federal senator, employed by the Commonwealth. She alleges that, up to October 2018, the senator sexually harassed her and discriminated against her because of her sex. On 29 October 2018 she was dismissed, and she lodged an unfair dismissal claim with the Fair Work Commission.
At the conciliation she raised the harassment, and was brought back, from time to time, to the question of her dismissal. The Commonwealth then made a settlement offer, telling her it would not stop a workers’ compensation claim. On 16 January 2019, with no lawyer acting for her, she signed a deed that released the Commonwealth from any claims arising out of, or related to, her employment.
She later complained of sexual harassment to the Australian Human Rights Commission and sued the senator and the Commonwealth in the Federal Court. She said she had understood the deed to settle only her unfair dismissal claim, and that it would be unfair for the Commonwealth to rely on its wide wording.
Justice Lee accepted she “did genuinely (but mistakenly) believe” she could still bring the claim, and that it was understandable how she came to think so. But her mistake was “entirely unilateral”. Nothing the Commonwealth’s representatives said had suggested the harassment claim would survive, they had no reason to know of her belief, and they had dealt with her carefully and fairly. The deed was enforced, and her case against the Commonwealth was dismissed with costs.
Her claim against the former senator himself was sent to another judge. Nothing in this decision found that the harassment did or did not happen.
Before you sign a settlement of any work claim, read the release closely and consider getting advice. A deed meant to end one claim can also end every other claim connected with the job, including one you have not yet made.
Costs were ordered against Ms Leach under the rules that applied at the time. From 2 October 2024, s 46PSA of the Australian Human Rights Commission Act 1986 (Cth) generally protects an applicant in a sex discrimination or sexual harassment case from paying the other side’s costs if the case fails, subject to exceptions. It does not apply to court cases started before that date.
A published decision of the Federal Court of Australia, retold in plain English. Lawcaptain did not act in this case. Every outcome depends on its own facts. General information, not legal advice about your situation.
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