Psychosocial Hazards & Safety
Leadership & Management

Reasonable Management Action vs Workplace Bullying

Where Is the Line? Here is what employers and employees need to know.

Natalie Rouillon
May 27, 2026
5
min read
AI Summary
Key takeaways
  • Workplace bullying is repeated, unreasonable behaviour that risks health and safety
  • A single incident isn't bullying, though it may be harassment
  • Reasonable management action is excluded from the Fair Work Act's bullying definition
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Difference between reasonable management action and workplace bullying?

Reasonable management action is any lawful supervisory or management activity that has a genuine operational or performance-related purpose and is carried out fairly, consistently, in accordance with established workplace policies and in a reasonable manner.

It includes things like giving feedback, setting performance expectations, conducting investigations and making staffing decisions.

Workplace bullying is repeated, unreasonable behaviour directed at a worker or group of workers that creates a risk to their health and safety. The definition of bullying under the FairWork Act 2009 (Cth) specifically excludes “reasonable management action carried out in a reasonable manner.”

Purpose vs Manner

The difference between the two comes down to purpose and manner. A manager who sets a tight deadline is not automatically bullying. A manager who repeatedly sets impossible deadlines specifically to make one employee fail, then humiliates them publicly when they do, almost certainly is.

The action on the surface can look identical. What separates them is why it is happening and how it is being done - and that distinction determines which legal framework applies, what remedies are available, and whether an employer can successfully defend their position before the Fair Work Commission.

The same action, changing a roster, raising a performance concern, removing a responsibility, could be lawful management in one context and evidence of bullying in another. Purpose and manner are everything.

What does the Fair Work Act say about bullying?

Section 789FD of the Fair Work Act 2009 is the governing provision. It defines bullying as repeated unreasonable behaviour that creates a risk to health and safety and explicitly excludes reasonable management action carried out in a reasonable manner.

The Fair Work Commission applies an objective test, meaning it depends on how a reasonable person would view the behaviour in the circumstances, rather than the worker’s subjective feelings or whether they personally found it distressing.

Workplace bullyingRepeated pattern required Reasonable management actionLawful even if distressing
Verbal abuse, repeated insults, or ongoing inappropriate criticism Setting performance goals, standards, and deadlines
Deliberately excluding someone from conversations, meetings, or work activities Conducting performance appraisals and giving feedback, including negative feedback
Hostile or abusive emails and other written communications Placing an employee on a PIP where genuine concerns exist
Unreasonable demands or impossible deadlines set to make a specific person fail Rostering, allocating, or changing working hours for operational reasons
Unfairly allocating tasks or hours to target an individual Transferring a worker or restructuring a team for genuine business needs
Deliberately withholding information or resources needed to do the job Investigating allegations of misconduct
Undermining someone's reputation or performance with colleagues or managers Taking disciplinary action, including demotion or termination, where the process is fair and documented

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What employers should do?

Document everything

Every performance conversation, one on one meeting, written warning, roster change and disciplinary action should be documented with dates, the reason for the decision and the process followed.

Apply standards consistently

Inconsistent and unfair application of performance expectations in organisations, is one of the most common factors in relation to determining whether reasonable management action has taken place.

Train managers on manner of delivery

Many bullying claims arise from managers who lack the skills to deliver difficult feedback professionally and objectively. Targeted training can address this gap.

Provide safe channels for concerns

This should include both anonymous reporting mechanisms and access to EAP counselling. Having a Speak Up policy is also good practice.

Frequently asked questions

Is reasonable management action an example of bullying?

No. Reasonable management action is explicitly excluded from the legal definition of bullying under section 789FD of the Fair Work Act 2009. Performance reviews, disciplinary processes, PIPs, and restructuring are all lawful where they are grounded in genuine business reasons and carried out fairly and reasonably.

What may reasonable management action include?

Reasonable management action includes setting performance goals and deadlines, conducting appraisals, providing constructive feedback (including negative feedback), placing an employee on a Performance Improvement Plan, allocating and rostering work, implementing organisational change with consultation, investigating misconduct, and taking disciplinary action up to and including termination where justified.

Is reasonable management action bullying under the Fair Work Act?

No. The Fair Work Act 2009 explicitly states that reasonable management action carried out in a reasonable manner does not constitute bullying, even where the worker finds it distressing. The key question is whether the action was lawful, proportionate and delivered fairly.

Can a demotion be reasonable management action?

Yes, in certain circumstances. A demotion can constitute reasonable management action where it is carried out for genuine operational or performance-based reasons, follows a fair process, is implemented in a reasonable manner and is documented appropriately.

What is the difference between bullying and harassment?

Bullying requires repeated unreasonable behaviour. Harassment can arise from a single incident and is often linked to a protected attribute such as sex, race, disability, or age. Both are psychosocial hazards that employers must manage. They are governed by different legislative frameworks with different available remedies.

What are Stop Bullying Orders?

A stop bullying order is a formal order from the Fair Work Commission (FWC) that a worker can apply for when being bullied at work. The FWC must be satisfied bullying has occurred and there is ongoing risk — they don't award compensation, only address future risk.

This article is intended for general informational purposes only and does not constitute legal or WHS/OHS advice. If you are dealing with a specific workplace situation, please seek independent legal or HR advice.

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Written By
Natalie Rouillon
Head of Psychosocial Safety and Culture, Foremind

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Our last EAP was barely touched. Why would this be different?
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Most EAPs go unused because of how they're accessed, not because staff don't need them. Phoning a stranger, explaining yourself, then waiting weeks is enough to stop most people before they start. Foremind removes all three steps: staff see real counsellor profiles, pick someone themselves, and book the same day.

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If you already have a provider, the question worth asking is what your current utilisation is. Most traditional EAPs sit in low single digits, which means you're paying for cover your people aren't reaching. If yours is being used, staff can get seen quickly, and it covers your psychosocial obligations, there's no reason to move. If not, it's worth knowing what you're getting for the spend.

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Practitioners hold membership with the Australian Counselling Association, the Psychotherapy and Counselling Federation of Australia, or the Australian Association of Social Workers, along with a current Working with Children or Vulnerable People Check.

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How much does an EAP cost?
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Pricing is usually per employee per month, based on total headcount rather than how many people use the service. Costs vary widely depending on whether sessions are bundled in and whether compliance tooling is included.

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A more useful comparison is cost per employee who actually uses it. An EAP with 2% utilisation can work out several times more expensive per person helped than one that gets used. Foremind offers pay-as-you-go, inclusive session plans and compliance-inclusive plans, with discounted pricing for not-for-profits and charities.

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For full breakdown of our plans, see our EAP pricing page or request a quote for a tailored proposal.

What information does an employer receive about EAP usage?
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Nothing that could identify anyone. All counselling is completely confidential and all reporting is anonymous - you'll never see who booked, when, or what was discussed.

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What you do see is the aggregated picture: how many people are using it, what psychosocial risks are prevalent in the business, and which teams are under pressure. Enough to know the investment is working and where to act, never enough to identify a person. Reporting thresholds mean small teams can't be reverse-engineered from the data.

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Does having an EAP meet an employer's psychosocial duty of care?
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No. An EAP is a control measure, and a valuable one, but it only addresses harm after it has occurred. It doesn't identify hazards, assess risk, or evidence that controls are working.

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Australian WHS law requires you to identify psychosocial hazards, assess the risk, control it so far as is reasonably practicable, and review whether those controls are working — with documented evidence at each step. Offering counselling on its own leaves three of those four steps undocumented.

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Foremind covers both in one platform. See how the compliance side works in our product tour.

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