The former employee, who cannot be named for legal reasons, sued Edson Group Pty Ltd for personal injury damages, alleging director Eduardo Duran sexually harassed her during her employment and that the company failed to provide a safe workplace.
Justice Verity McWilliam ruled in favour of the company on Tuesday, stating that in a negligence claim, more is required before a corporate defendant is made liable for the conduct of an employee, even if that employee is the boss or sole director.
The ruling, she said, was 'a product of the application of the legal principles applying to the torts that were pursued' and should not be taken as tacit approval of what occurred.
The woman began working for Edson Group in 2016 when she was under 18, across five separate periods until 2022. Her allegations centred on conduct during her first four periods.
During 2018, she said Mr Duran made sexualised comments including telling her he could see her underwear lines and that what she was wearing was distracting him. On another occasion she said he told her 'I can see up your skirt' after asking her to fix computer cables under a desk. Mr Duran denied making the skirt comment but accepted he may have said something about dressing more appropriately.
Justice McWilliam accepted the woman's account and found the comments left her feeling embarrassed and uncomfortable. The judge said Mr Duran's conduct during that early period was 'likely to have amounted to sexual harassment in the workplace', but it was not causative of any injury as required for a negligence claim.
The published decision also noted that during her employment, boundaries blurred as the pair socialised together, drinking alcohol and taking cocaine in the workplace.