Preventing Workplace Harassment: An Employer’s Guide

From 30 October 2026, employers must do more to prevent harassment at work.

Under the Employment Rights Act 2025, the existing duty to prevent sexual harassment is strengthened, and employers can become liable for harassment of their staff by third parties such as customers and clients. The focus is on prevention, not simply responding after an incident occurs, and many organisations may not yet be prepared. This guide explains what is changing and the practical steps employers should take now.

What Has Changed?

Since October 2024, employers have been under a legal duty to take “reasonable steps” to prevent sexual harassment in the workplace. However, from 30 October 2026, that duty has been strengthened to require employers to take “all reasonable steps” to prevent sexual harassment.

While the change may appear subtle, the practical impact is significant. The question is no longer whether an employer took some reasonable steps. Instead, tribunals will consider whether there were any further reasonable measures available that the employer failed to take.

New Liability for Third-Party Harassment

Perhaps the most significant development is the introduction of liability for harassment committed by third parties, such as customers, clients, contractors, suppliers, service users, patients and members of the public. From 30 October 2026, employers may be liable where an employee is harassed by a third party during the course of their employment unless the employer can demonstrate that it took all reasonable steps to prevent such conduct.

Importantly, this protection is not limited to sexual harassment. It extends to harassment related to protected characteristics under the Equality Act 2010, including race, age, disability, religion or belief, sexual orientation, gender reassignment and sex.

A Shift from Reaction to Prevention

The new law reflects a clear change in approach. Employers are now expected to proactively identify risks and take steps to prevent harassment before it occurs, rather than merely investigating complaints after the event. Tribunals are likely to scrutinise workplace culture, reporting mechanisms, management engagement and the effectiveness of training when assessing compliance.

Simply having a policy hidden away in an employee handbook is unlikely to be sufficient. Employers will need evidence that harassment risks have been considered and actively managed.

What Should Employers Be Doing?

To reduce legal risk and create a safer workplace, employers should consider:

• Conducting harassment risk assessments.
• Reviewing and updating harassment, dignity at work and equality policies.
• Delivering regular, meaningful training to employees and managers.
• Creating clear and accessible reporting channels.
• Monitoring workplace culture and responding to concerns promptly.
• Assessing areas and identifying high risk interactions and environments where employees interact with customers or other third parties (i.e. customer-facing roles, client events and lone working).
• Set clear expectations for third parties (client communications).
• Keeping detailed records of preventative measures, training and investigations.

For sectors involving significant public interaction, such as hospitality, retail, healthcare and customer-facing services, the new third-party harassment provisions are likely to present particular challenges.

Potential Consequences of Non-Compliance

The financial and reputational consequences of failing to comply with the new duties can be substantial. Where a sexual harassment claim succeeds and an employer is found to have breached its preventative duty, compensation may be increased by up to 25%. Employers may also face regulatory scrutiny, European Convention on Human Rights (ECHR) enforcement action, adverse publicity and damage to staff morale and retention.

Act now

The October 2026 harassment reforms represent one of the most significant developments in workplace equality law in recent years. By strengthening the duty to prevent sexual harassment and extending protection against third-party harassment, the legislation places prevention firmly at the heart of employer responsibilities.

Organisations that review their policies, assess risks and embed a culture of respect and accountability will be best placed to meet the new legal standard and protect both their workforce and their business

Farleys’ employment experts can help you understand what these reforms mean for your business and support you in updating policies, training managers, and handling dismissal situations in line with the new requirements. Get in touch if you’d like to discuss how we can help your organisation stay compliant as these changes roll out. Call 0333 920 1093
, contact us by email, or use the online chat below.

Did you also know that we can offer various funding options for your business including our retainer scheme, Farleys HR Advantage?  Speak to one of the team to find out more.