Management Liability Case Study – He Said, She Said

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Management Liability Case Study – He Said, She Said

Management Liability Case Study – He said, she said

An employee of a medium-sized IT company claimed that she was subjected to sexual harassment by fellow employees. She sought an apology from the employees who committed the alleged harassment as well as compensation for loss of earning capacity and reputation, emotional distress, depression, medical expenses and legal costs.

The parties were unable to settle the matter and a formal complaint was lodged with the Victorian Equal Opportunity and Human Rights Commission (VEOHRC). The VEOHRC rejected the claim as the alleged incident occurred more than 12 months prior to the complaint being lodged, and also determined that there was insufficient information to support the sexual harassment claim.

The insured and the claimant were able to reach an agreement at conciliation and the employee was awarded $28,000 in damages, which was paid by the insurer under the Management Liability policy.

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