A 22-year-old hospitality employee has been awarded more than $72,000 after her 62-year-old boss subjected her to sustained workplace sexual harassment. The employee was required to accompany him alone on a business trip and was pressured to share a hotel room bed with him. The boss and his company failed to engage in legal proceedings, only attending a single hearing to label the employee an “actress.” The Victorian Civil and Administrative Tribunal found the boss engaged in “predatory and grooming” sexual harassment, finding both him and his company liable.
In this article, we look at the events of this workplace sexual harassment case McColley v Spanish Doughnuts Franchising Pty Ltd [2026] and why the tribunal ordered such a large payout.
Darcy McColley worked in a junior role for now defunct Spanish Doughnuts Franchising from 23 February 2022 to 17 May 2022. The Melbourne-based business was founded by its CEO Michael Aldemir and operated a chain of doughnut restaurants. At the time of Ms McColley’s employment, Mr Aldemir was 62 years old, some 40 years older than her. The business had no human resources personel and no policy or training addressing workplace sexual harassment.
Over the course of her employment, Mr Aldemir made multiple “unwelcome sexual advances” toward Ms McColley. This included:Sending her suggestive text messages, commenting on her appearance and smell, and offering to buy her presents like clothes and perfume.
Setting up one-on-one meetings with Ms McColley that did not need to happen at all. He also kept her away from colleagues more generally.
Taking her on work trips where it would have made more sense to be accompanied by a more experienced employee.
Making secret cash payments to Ms McColley to cover trip expenses. This was to hide the fact that she went on these trips from his wife, who worked at the company and could access financial records.
Mr Aldemir required Ms McColley to come with him on a business trip to Queensland. He made her pay for the flight herself so as to hide the fact that she came. Mr Aldemir told her that the trip was to attend a series of business meetings. However, these meetings ended up being scrapped bar one. Mr Aldemir had assured Ms McColley that they would stay in different rooms. However, once they arrived, he said that there had been a “problem with the booking” and that there was only one room they could take with a double bed.
Mr Aldemir told Ms McColley that they could simply place a pillow between them. She declined this, so Mr Aldemir proposed he sleep on the floor, which Ms McColley also refused. She then went to the concierge and was told there actually were other rooms available. Ms McColley then booked a room for herself. Mr Aldemir covered the cost with a cash payment to hide the transaction in company records. Ms McColley was so afraid of Mr Aldemir that she put a chair under the door handle so the door could not be breached.
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The workplace sexual harassment extended beyond the hotel situation. Mr Aldemir set up recreational outings that he required Ms McColley to attend. He pressured her to drink alcohol and became upset when she left a dinner early because she felt unsafe around him. When Mr Aldemir’s wife called him during the trip, he did not tell her he was with Ms McColley. He also arranged a trip for the duo to Byron Bay for no apparent reason. During the trip, Mr Aldemir made promises to Ms McColley about progressing her career at the company.
When the duo returned back to Melbourne, Ms McColley was “seriously affected.” She told her mum and partner what had happened and took a mental health day off work. On her return to work, Ms McColley and her mum spoke to Mr Aldemir about his conduct on the trip. However, he “did not take her concerns seriously.” He told them that he had more trips for the duo in the works, including one to Dubai. It was then that Ms McColley decided to end her employment.
Ms McColley’s mother told the Victorian Civil and Administrative Tribunal that when her daughter came back from the Queensland trip, she was no longer “the same bubbly person.” The mother said that Ms McColley “struggled to settle in” to any subsequent jobs and found it difficult to socialise and trust anyone new.
After she resigned, in July 2023 Ms McColley lodged her application with the Victorian Civil and Administrative Tribunal. She accused Mr Aldemir and Spanish Doughnuts Franchising of workplace sexual harassment and sex discrimination under the Equal Opportunity Act 2010 (Vic). Ms McColley sought $80,000 in general damages to compensate for her non-economic loss, along with special damages for lost income and medical expenses.
She argued to the Tribunal:
Mr Aldemir and his company were given more than two years and multiple opportunities to file evidence or submissions but did not do so. Twice in the days before the final compensation hearing, Mr Aldemir sought an adjournment. He first gave the reason of needing to engage lawyers and then cited ill health. This later delay was supported by a medical certificate that the Tribunal found inadequate. Neither he nor the company attended the hearing.
Mr Aldemir only attended one Tribunal hearing. He took this opportunity to label Ms McColley an “actress” who “likes to perform.” He also said that she did not like people like him due to her “upbringing.” Ms McColley argued to the Tribunal that this conduct throughout the two-year proceedings was unjustifiable and worsened her distress.
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The Victorian Civil and Administrative Tribunal delivered its liability decision in June 2026. Its findings included:
The Victorian Civil and Administrative Tribunal delivered its compensation decision in August 2026. It accepted that Ms McColley continued to suffer distress, hurt and humiliation years after the events occurred. She also suffered an exacerbation of pre-existing anxiety and depression. The Tribunal noted that Ms McColley had been unable to return to hospitality work, where she had worked for ten years. She also continued to struggle to trust male colleagues and managers in her new career.
The Tribunal awarded Ms McColley $70,000 in general damages, which was reflective of “prevailing community standards” for compensation delivered in serious sexual harassment cases. It also awarded $2,397.05 in special damages to compensate Ms McColley for lost income from her lower-paid subsequent roles and counselling expenses. Ms McColley did not seek aggravated damages.
Spanish Doughnuts Franchising was found vicariously liable for Mr Aldemir’s conduct. The Tribunal ordered the CEO and the company to pay the $72,397.05 jointly or severally. Ms McColley had not sought the respondents to pay for her legal costs as she had been represented by pro bono legal support. However, the Tribunal noted that an order for costs would have been justified given the respondents’ conduct during proceedings.
There is no fixed cap on compensation in Australian workplace sexual harassment cases. The size of an award depends on the severity and duration of the conduct, its impact on the victim and prevailing community standards, which have generally pushed award amounts upward over the past decade.
In McColley v Spanish Doughnuts Franchising Pty Ltd [2026], the tribunal awarded Ms McColley $70,000 in general damages to reflect the seriousness of her CEO’s conduct and its lasting psychological impact. In addition, she was awarded $2,397.05 in special damages for lost income and counselling costs. A claim for aggravated damages was not pursued, bringing her total payout to $72,397.05.
Yes, research shows that seniority gaps are a major factor. According to an Australian Human Rights Commission survey, women are more likely than men to be harassed by someone more senior to them at work, at 17 per cent compared with 13 per cent for men. The same survey found that where the harasser is an employer or boss, the harassment is more likely to have occurred in a small workplace of fewer than 25 employees. These workplaces tend to not have a dedicated human resources function to turn to.
In McColley v Spanish Doughnuts Franchising Pty Ltd [2026], the victim was 22 and directly managed by her 62-year-old CEO, in a small business. It had no HR function, no policy on sexual harassment, and no one else to turn to given the harasser was the company’s most senior figure and his wife also held a senior role.
At A Whole New Approach, we’ve been at the forefront of sexual harassment claims in Australia for more than 20 years, representing employees in every state and territory. We offer a free, confidential and no-obligation first consultation, and work on a no-win, no-fee basis. Call us seven days a week on 1800 333 666 to discuss your situation.
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