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An employer displayed a "distinct lack of understanding" about its legal obligations regarding workplace s-xual harassment allegations, and breached a clause in its enterprise agreement, the Fair Work Commission has found.

Given her findings, Commissioner Julia Fox said it would be "prudent" for the employer to "undertake a review of its policies, processes and accountabilities, including training of its human resources, legal and senior leadership teams, to ensure that the organisation understands its legal obligations in relation to sexual harassment".

In applying to the Commission to deal with a dispute, the Australian Rail, Tram and Bus Industry Union (RTBU) claimed Metro Trains Melbourne's response to the employee's complaint was inconsistent with clause 2.30 of its enterprise agreement.

This clause states that in accordance with its existing legislative obligations, Metro will, among other things: treat all incidents seriously and promptly and investigate allegations of sexual harassment as appropriate; and ensure employees who complain of sexual harassment aren't victimised...