Office gossip is now against the law. (But you didn’t hear that from me)

2 weeks ago 4

Opinion

November 19, 2025 — 5.00am

“You didn’t hear this from me…” is how it typically starts. Who isn’t drawn in by the hint of secrecy of a big piece of juicy gossip in the workplace? Who can resist the promise of a brief escape from the monotony of office life? But beware, these conversations about the performance or behaviour of a colleague, the kind that once may have been dismissed as harmless chit-chat, are increasingly the cause for court action.

In recent years, states including NSW have introduced laws to prevent “psychosocial hazards” – things like bullying, excessive workload, trauma exposure and malicious gossip or rumours – that won’t just be a matter for HR. From December 1, Victoria will adopt similar regulations relating to “personal or work-related interactions … that may … cause an employee to experience one or more negative psychological responses, creating a risk to their health and safety.” Failure to address breaches could lead to prosecution and fines.

Worker wellbeing is a growing concern for organisations with increases in psychosocial risk claims and work absences due to stress and exhaustion.

A growing number of claims in this area signals what appears to be a shift in workplace culture, away from resilience and towards heightened sensitivity to interpersonal dynamics. The old view that “sticks and stones may break my bones, but names will never hurt me” has been replaced by a modern view that even comments made behind someone’s back, and outside their presence, can cause psychological harm and lead to workplace incapacity.

Court cases linking workplace gossip and rumour to psychological injury have shown that employers can be held liable for traumas sustained by employees.

In 2017, a long-serving Woolworths employee successfully claimed compensation for psychological injury after workplace gossip and rumours spread during an internal investigation into allegations that he had been stealing items from the supermarket. Although he was ultimately found not guilty and the investigation was found to be “reasonable management action”, the NSW Workers Compensation Commission held that the gossip and ostracism from co-workers, who thought he was guilty and continued to ask why he had not been dismissed, were the cause for the employee’s psychiatric harm.

Medical evidence indicated that persistent questioning by co-workers about false allegations was the predominant cause of his injury, leaving him feeling hounded and ostracised in a “pack of dogs” environment.

In another case from 2023, a laboratory technician at a pathology clinic won a workers’ compensation claim alleging she suffered a psychiatric injury after being bullied and harassed over unfounded rumours spread by others that she was having an affair with her supervisor. That supervisor had confronted her and asked if she was telling people that he was her boyfriend and she had contracted a sexually transmitted disease from him. Her supervisor also assumed responsibility for conducting disciplinary meetings about the rumours, creating further stress and conflict.

The cases demonstrate that workplace gossip poses a real legal risk and that employers have a duty to act when it is persistent, especially if it involves harassment and discrimination.

Workers should remember that gossip is like tearing open a pillow on a windy day – once the feathers are scattered in the wind, you can never gather them back. But there are good reasons why gossip shouldn’t be outlawed. Gossip is more than idle chatter: it is an evolved social tool that helps maintain social cohesion. Research by British anthropologist and primate behaviour expert Robin Dunbar suggests up to two-thirds of everyday conversation is devoted to discussing social relationships – who is doing what, with whom, and why. In his paper Gossip in Evolutionary Perspective, he argues this functions like social grooming among primates: strengthening bonds, building trust, and allowing people to monitor reputations and cooperative behaviour within a group.

We seldom get to choose our coworkers, and the workplace inevitably brings together a mix of diverse and often clashing personalities. Autocrats, passive-aggressive colleagues, chronic complainers, manipulators, jokesters, and those perpetually chatting or glued to their phones are all part of the mix. Gossip often becomes a means of coping with these varied personalities and management styles.

It’s a concern that we’ve reached a point where a spirited debate in a meeting could be labelled bullying, and even casual criticism behind someone’s back can be seen as contributing to a psychologically unsafe environment.

Workplaces are not meant to be relaxation retreats. Even anti-gossip laws have their limits. In a 2024 case involving an unsuccessful claim by a radiographer at the Gold Coast Hospital and Health Service, the Supreme Court of Queensland determined that employers don’t have a general duty of care to eliminate gossip or ensure a “happy” workplace. An employer’s duty extends to taking reasonable steps to prevent psychological harm, but not to guaranteeing a perfectly harmonious or gossip-free workplace.

I question the need for legal intervention into basic human interactions, as gossip, broadly, remains a fundamental element of human social interaction. But employers and managers need to accept that regulators are scrutinising the psychological impacts of workplaces more closely than ever. They will need to watch for signs that employees are being affected by gossip or rumours – whether that be increased absenteeism, declining performance, rising grievances, or avoidance of colleagues. Once gossip spreads, it cannot be contained, and those affected may now pursue legal remedies.

Paul O’Halloran is a partner and accredited specialist in workplace relations at law firm Dentons.

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