A young employee at a Mad Mex franchise in Sydney‘s Hills District has received $305,000 in compensation for sexual harassment by her manager.
Sher Khan, 62, was found by Federal Court Justice Robert Bromwich to have sexually harassed the young Nepalese employee, and she was awarded $160,000 in general damages, a record for a federal sexual harassment case.
The woman, Biplavi Magar, had been employed by Mexicali Enterprises Pty Ltd, a company owned and controlled by Khan which was a franchisee of Mexican themed fast food chain Mad Mex.
Justice Bromwich also awarded Ms Magar aggravated damages, taking her total to $305,000, in large part due to the way in which her former boss had run his court case and the fact he had threatened her with defamation proceedings.
During the case it was alleged Khan, who also goes by Sonny Khan, had showed the employee pornography during her work as a shift supervisor, brushed sex toys against her thigh, and made repeated sexualised remarks.
Ms Magar outlined one incident in January 2023 when she said Khan pointed to a hickey on her neck and asked if she had enjoyed the night before as well as questioned her about who she had met and if she got ‘banged’.
She also said Khan asked her whether she would sleep with other employees at the Baulkham Hills store, including some as young as 13.
Ms Magar also gave evidence that Khan asked her to get into his car, where he took out an iPad and pulled up explicit content on PornHub before he showed her sex toys in a Coles bag and, at one point, touched her thigh with one.
Sonny Khan (pictured left) ran a Mad Mex in franchise in Sydney
The Federal Court awarded the employee a record payout
She testified she froze and ‘just wanted to vomit’.
The employee claimed Khan had also led discussions in the workplace in which staff commented on customer’s or former worker’s breasts, bottoms and clothing, and called them ‘skanks’ or ‘whores’.
She claimed Khan asked her if she had ever had sex with a woman or watched lesbian pornography and when she said no, suggested that she ‘loosen up’ and experiment.
Khan argued he could not have sexually harassed the woman because of serious medical conditions, including impotence.
However, Justice Bromwich said his health conditions did not pose any restriction to sexual misconduct.
‘There was nothing to suggest that he could not engage in other acts of a sexual nature that did not require a sex drive,’ he said.
‘His boasting about his exploits included describing acts which did not require him to perform sexually in a way that the medical conditions he described precluded, such as using sex toys or performing oral sex.’
After Ms Magar complained about his conduct to Mad Mex human resources, Khan’s legal representatives twice threatened to bring defamation proceedings against her.
Ms Magar (pictured) was threatened with defamation if she pursued her complaint
Justice Bromwich found the owner took this action to try to stop her from pursuing her complaints, and this amounted to victimisation that contravened the Sex Discrimination Act.
The franchisee owner emphatically denied that he, or employees at the Norwest Marketown store, had stood around making derogatory comments towards customers or staff members.
He also denied he ever owned an iPad or sex toys or showed the employee pornographic videos or asked her to attend a massage parlour or hotel with him.
He also denied ever asking her which of her colleagues she’d like to have sex with, whether she used sex toys or describing his exploits with his ex-wife.
Ms Magar testified the sexual harassment had left her bedridden ‘most days’, ‘unable to prepare food to eat, get water to drink or get out of bed to use the bathroom without difficulty’, and she became heavily dependent on friends and her partner.
She said she felt dirty, had suicidal thoughts, and was afraid to leave the house alone or get another job. She has since been diagnosed with post-traumatic stress and major depressive disorders.
Justice Bromwich said Khan fostered a workplace culture that was disinterested in preventing sexist conduct from taking place and was instead tolerant, or even conducive to its continuation.
‘Such a workplace culture can have the effect of normalising sexualised behaviour towards women and foster an escalation into worse behaviour, such as a progression into sexual harassment,’ he said.
Ms Magar came to Australia in 2021 on a student visa.
The supervisor initially also brought the case against Mexicali, but discontinued that claim after the company went into liquidation.