Not every tough manager is a bully.
Managers are expected to set standards, hold people accountable and address underperformance. Difficult conversations are part of leadership.
But there is a line.
And once that line is crossed, what some leaders call “performance management” can quickly become bullying, harassment and a serious legal risk.
A recent decision of the Fair Work Commission in Foster v MSWA Limited [2026] FWC 1917 (11 June 2026) is a sharp reminder of where that line may sit.
The case involved a manager overseeing a call centre for a not-for-profit organisation supporting people living with neurological conditions.
The allegations against the manager were serious.
According to the evidence accepted by the Commission, the manager:
- shouted across the contact centre in an angry tone to stop ordinary social interaction between staff
- micromanaged and excessively criticised workers
- spoke to employees in a condescending manner
- told a worker that HR was “in her back pocket” and not to seek support
said she would not have hired a worker had she known about their anxiety - suggested she could protect a worker from redundancy but implied consequences if the discussion was disclosed
- responded to a complaint about inappropriate comments by effectively blaming the employee’s appearance
The employer terminated the manager’s employment.
She challenged the dismissal.
The Commission upheld the termination.
Importantly, the Commission found the behaviour amounted to bullying and harassment and that dismissal was a proportionate response.
One part of the decision stands out.
Employees, the Commission said, should be treated with dignity and respect.
Many Employers still struggle with exactly where robust management ends and unreasonable conduct begins.
The Problem With “I’m Just Direct”
One of the most common defences I hear from leaders is:
“That is just their communication style.”
Or:
“They are blunt, but they get results.”
That thinking creates risk.
Being demanding is not automatically unlawful.
Holding people accountable is not bullying.
Giving corrective feedback is not harassment.
But repeated conduct that humiliates, intimidates, undermines or psychologically pressures workers can cross the line very quickly.
And intent is not always the deciding factor.
A manager does not need to intend harm for harm to occur.
That is where many organisations get caught.
The leader may believe they are driving performance.
Meanwhile, the team experiences fear, anxiety and psychological stress.
This Is No Longer Just An HR Issue
Historically, behaviour like this might have been treated as a culture issue or an employee relations problem.
That approach is now incomplete. Poor management conduct increasingly needs to be viewed through a psychosocial risk lens.
- Repeated public criticism.
- Humiliation.
- Threat-based leadership.
- Unreasonable pressure.
- Excessive monitoring.
These are no longer just “people issues.”
They may be psychosocial hazards.
That means organisations need to think beyond complaints and grievances.
Boards, executives and HR leaders should be asking:
- Are managers trained to give feedback properly?
- Do we intervene early when complaints emerge?
- Are high-performing toxic leaders being tolerated?
- Are we monitoring psychosocial risks in management practices?
Because if the answer is no, the risk is rarely contained to one difficult conversation.
It often grows into turnover, complaints, investigations, workers’ compensation claims, stop bullying applications or litigation.
The Real Legal Lesson
The biggest takeaway from Foster is not that managers should avoid difficult conversations.
It is the opposite.
Managers still need to manage.
But they need to manage reasonably.
That means feedback should be:
- clear
- specific
- evidence-based
- private where appropriate
- respectful in tone and delivery
The substance of the conversation matters.
But so does the delivery.
Sometimes the legal problem is not what was said.
It is how it was said.
A manager can be technically correct on performance issues and still expose the organisation to significant risk because of the way they communicate.
That is the real danger.
Final Thought
Many workplace disputes do not begin with dramatic misconduct.
They begin with tolerated behaviour.
- A raised voice.
- A humiliating comment.
- A manager everyone knows is “difficult.”
- A complaint that gets minimised.
Over time, those behaviours become normalised.
Until they become expensive.
Need Assistance?
South Geldard Lawyers regularly assists employers, Business Leaders, CEOs, CFOs, HR teams and Executives with:
- Workplace investigations
- Psychosocial hazard management
- Manager and leadership training
- Employment law and workplace safety audits
- Having difficult conversations
- Performance Management
If you would like to discuss your organisation’s current approach, contact our Employment Law Team on jmamaril@southgeldard.com.au or 07 4936 9100.
