Dec 25
The Equality Act 2010 provides protection to workers against sexual harassment from managers and colleagues, with employers typically being liable for any sexual harassment committed by their employees.
However, employees may also be subject to sexual harassment in the workplace from other people like customers, contractors, suppliers and other third parties.
Employers have already been under a duty since October 2024 to prevent the sexual harassment of employees by colleagues. However, the Employment Rights Bill intends to enhance that duty, says Eve Gregory, a Solicitor in the Employment Team at Raworths.
The Bill proposes to make employers liable, not only for the sexual harassment of employees by their colleagues, but also for any sexual harassment by customers and other third parties.
Employers need to be aware and ready for this change. A wide range of behaviours can constitute sexual harassment and that behaviour does not always need to be obvious and direct. That’s why it’s more important than ever, that organisations are educated on this topic and those behaviours.
In this article, Eve Gregory looks at the existing law, the new obligations and other expected changes, and what employers should be doing to get ready.
Sexual harassment is unwanted conduct of a sexual nature that has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment. When looking at the effect of the conduct, employment tribunals take into account the individual’s perception.
A wide range of behaviour can be sexual harassment. Examples include sexual jokes or comments, displaying or sharing sexually graphic images, questions about an individual’s sex life or talking about their own sex life, and unwelcome physical contact.
Employers can be liable for their employees’ actions, even if they did not know about them. They can face having to pay damages for injury to feelings or even personal injury, for instance if the harassment caused or intensified ones mental health problems.
If the employer can show that they took ‘all reasonable steps’ to prevent the sexual harassment, they will not be liable. To establish this defence, employers need to have more than simply a ‘dignity at work’ policy.
Employers currently have a duty to actively take ‘reasonable steps’ to prevent the sexual harassment of employees. The Bill will change this to ‘all reasonable steps’.
The Government consulted on this and regulations are expected to give details on the requirements of this wider duty. These are likely to include risk assessments, publishing policies or action plans, and having procedures for reporting and investigating complaints of sexual harassment.
Failure to comply with this duty will risk an employment tribunal adding an uplift of up to 25% to compensation awarded to an employee and an investigation by the Equality and Human Rights Commission.
The Bill will make employers liable for third party harassment of their staff in the course of their employment.
Employers will also have a duty to take all reasonable steps to prevent sexual harassment by third parties, although the expectations may be lower than that for colleagues, because employers have less control over third parties.
These changes may be particularly challenging, especially for businesses with staff in customer facing roles, or for those working with the public, contractors or partner organisations.
One further layer of protection will be given to workers and employees who disclose that they have been subjected to sexual harassment. Changes expected from April 2026 will give them the same legal rights as whistleblowers have in relation to detrimental treatment and unfair dismissal.
Agreements that prevent employees from discussing any allegations of harassment will be banned. No date has been given for this change and further details are expected but these changes could prevent employers from entering a settlement agreement with an employee to avoid an employment tribunal claim for sexual harassment.
Higher education providers have already adopted this approach – with a new law coming into force on 1 August 2025, preventing higher education providers from entering non-disclosure agreements with staff and students in relation to allegations of sexual harassment, sexual abuse, or other bullying or harassment.
The changes to the duty to prevent sexual harassment are expected to come into force in October 2026, but any regulations setting out the detail would come later.
Employers will be grappling with a lot of big changes to employment law over the next couple of years. Changing practice and workplace culture now will ensure you are not caught on the back foot. We can advise you on the most effective measures that you can take to protect your organisation, such as:
The Employment team at Raworths give practical and bespoke advice to ensure you can take effective steps now to prepare for these changes and minimise risk to your business.
For further information, please contact Eve Gregory in the employment team on 01423 724608 or email eve.gregory@raworths.co.uk. Raworths is based in Harrogate, North Yorkshire.
Published on 9 December 2025
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
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