22 min read
Human resources risks and liabilities
Last updated April 2025
This chapter explains when the actions of human resources professionals can give rise to legal liability and how to reduce the risks.
How can HR create legal liability for your business?
The human resources (HR) department is often responsible for making decisions and taking action on behalf of the business, e.g. performance management and dismissal. These types of actions can create legal liability for your business, and potentially the HR professional themselves, under:
- the Fair Work Act 2009 (Cth) (FW Act) (read more);
- health and safety legislation (read more);
- anti-discrimination legislation (read more);
- consumer law (read more);
- privacy laws (read more);
- long service leave legislation (read more);
- migration law (read more); and
- workers’ compensation legislation (read more).
Liability under the FW Act
Your business can be held liable if an HR professional breaches the FW Act, including: