Preventing Sexual Harassment in the Workplace: What the New Legal Duty Means for UK Employers
On 26 October 2024, a major legal change came into force that affecting all UK employers—the Worker Protection Act 2023. This new law introduces a proactive duty on employers to take reasonable steps to prevent sexual harassment in the workplace.
Unlike previous legislation, which focused on responding to incidents, this new duty requires employers to actively demonstrate that they have taken preventative measures. Failing to do so could lead to employment tribunals awarding up to 25% more compensation to victims of sexual harassment.
In this article, we explain what the new duty involves, why it matters for your business, and how you can take practical steps to comply.
What Is the New Duty?
The Worker Protection Act introduces a new, proactive requirement for employers to take reasonable steps to prevent sexual harassment. While the Equality Act 2010 already prohibited workplace harassment, it placed the burden on employees to report incidents after they occurred. Under the new legislation, employers must demonstrate that they have actively worked to prevent harassment from happening in the first place.
Importantly, the new duty extends to third-party harassment, meaning businesses could be liable if their staff are harassed by customers, clients, or contractors. Although third-party harassment was previously removed from the Equality Act in 2013, this new provision revives and strengthens employer accountability.
If a business fails to take reasonable steps, tribunals can increase compensation for employees by up to 25%. For example, if a harassment claim resulted in a £10,000 compensation award, the business could face an additional £2,500 penalty if it is found to have breached its preventative duty.
What Does This Mean for Your Business?
The financial and reputational risks of non-compliance are significant. For companies of all sizes, failing to meet this new duty could result in higher tribunal payouts, costly legal battles, and lasting damage to their brand image.
From a financial standpoint, the 25% compensation increase makes harassment claims far more expensive. This is particularly concerning for small and medium-sized businesses, where legal disputes can have a greater impact on cash flow.
Reputationally, companies that are perceived as failing to protect their staff could face public backlash. In an era where workplace culture is increasingly under the spotlight, allegations of sexual harassment can lead to negative publicity, loss of customer trust, and difficulties in attracting and retaining talent.
The legislation also gives the Equality and Human Rights Commission greater enforcement powers to investigate businesses and issue fines—even in the absence of a formal complaint from an employee. This adds an extra layer of risk for businesses that fail to take preventative action.
Practical Steps for Compliance
To meet the new legal duty, businesses must go beyond having a written policy—they need to actively demonstrate their commitment to preventing harassment. This requires reviewing and strengthening workplace procedures, delivering regular training, and creating a culture of accountability.
Review and Update Policies
One of the first steps employers should take is to review their anti-harassment policies. Policies should clearly define what constitutes sexual harassment, outline the process for reporting incidents, and explain how complaints will be handled.
It is also important to include third-party harassment protections. For customer-facing businesses, such as retail or hospitality, this could mean introducing policies that allow staff to refuse service or request assistance when facing harassment from clients or customers.
Regular and Meaningful Training
Providing regular and effective training is essential to demonstrate that you have taken reasonable steps to prevent harassment. However, one-off or superficial training sessions are unlikely to meet the threshold.
Training should cover:
- Recognising and preventing sexual harassment.
- How to report incidents safely and confidentially.
- Handling third-party harassment in customer-facing roles.
Interactive and scenario-based training tends to be more effective than generic, online courses.
Risk Assessments and Monitoring
Employers should also carry out regular risk assessments to identify areas where harassment risks are higher. For example, businesses with late-night shifts, isolated working conditions, or high customer interaction may need additional safeguards.
Regularly monitoring the effectiveness of your anti-harassment measures is equally important. This can include collecting anonymous staff feedback, reviewing complaint logs, and updating policies as necessary.
The Impact on Customer-Facing Businesses
For businesses that regularly deal with customers or clients, the third-party harassment provision is particularly significant. Under the new law, employers must take reasonable steps to protect staff from harassment by external individuals.
In practical terms, this may involve:
- Displaying visible signage in customer areas warning against abusive behaviour.
- Training employees on how to de-escalate situations and seek support.
- Implementing incident reporting protocols to track and respond to incidents of sexual harassment.
Companies that fail to address customer harassment may face legal claims and compensation uplifts, even if the incident involves an external party rather than a fellow employee.
Final Thoughts
The introduction of the Worker Protection Act 2023 marks a significant shift in how UK employers must approach sexual harassment prevention. With the new proactive duty, businesses can no longer afford to be reactive. Instead, they must take clear, reasonable steps to prevent harassment before it occurs.
By reviewing your policies, conducting risk assessments, and creating a safer working environment, you can protect both your employees and your business. Failing to comply could lead to costly tribunal claims, financial penalties, and reputational damage.
Taking action now will not only ensure you meet your legal obligations but also foster a more positive and respectful workplace culture—something that benefits both your staff and your bottom line.
