New harassment rules for employers start on 30 October: are you ready?
On 30 October, the rules on workplace harassment change for every employer. If a customer, client or contractor harasses a member of your team while they’re working, you could be held responsible if you haven’t taken “all reasonable steps” to prevent it.
In this article, we’ll explain what’s changing, what “all reasonable steps” is likely to mean in practice, and what to check on your insurance policies.
What’s changing on 30 October
Two changes take effect on 30 October 2026, according to the Government’s timetable.
Harassment by third parties. Employers will become liable for harassment of their employees by people outside the business – customers, clients, contractors, suppliers or members of the public – where it happens in the course of the employee’s work and the employer hasn’t taken all reasonable steps to prevent it. It covers harassment under the Equality Act 2010, not just sexual harassment.
A tougher duty on sexual harassment. Since 26 October 2024, employers have had a duty to take reasonable steps to prevent sexual harassment of their employees. From 30 October, the word “all” is added.
What does “all reasonable steps” mean?
It’s a fair question, and the honest answer is that the detail is still being settled. As we understand it, regulations setting out which steps count as reasonable aren’t expected until 2027.
In the meantime, what’s reasonable will depend on things like your size, your sector, where your people work and the resources you have. Government guidance points to measures such as risk assessments, published policies, clear ways to report concerns and handling complaints properly. The word “all” signals a higher bar than before, so it’s sensible to assume that if a practical step was available and you didn’t take it, that may be questioned.
Where the risk tends to sit
Think about where your people deal with others outside the business. Examples include:
- customer-facing roles, in a shop, office or on a front desk
- drivers, engineers and tradespeople visiting customer sites
- events or hospitality where alcohol is served
- high-pressure conversations, such as complaints or collections
Typical examples include verbal abuse of an employee on the grounds of age, race or sexual orientation, or sexual harassment by a client.
Practical steps to take now
- Review your policies. Check that your harassment policy covers third parties as well as colleagues, and that staff know where to find it.
- Carry out a risk assessment. Look at the roles and situations above, and write down what you’ve found and what you’ve done about it.
- Train your managers and your team. Managers should know how to spot problems, what to do when someone raises a concern and how to record it.
- Make reporting easy and act promptly. People are more likely to speak up if they know they’ll be taken seriously. Keep a record of what was reported and what you did.
- Talk to customers and suppliers. Consider updating your terms or onboarding so they know what behaviour you expect towards your staff.
- Keep evidence. If you ever need to show what you did, dated notes of training, assessments and decisions will help.
What this means for your insurance
Harassment claims are employment matters, and whether an insurance policy responds depends entirely on its wording. This isn’t something to assume either way.
It’s worth checking, depending on your policy:
- whether your legal expenses cover includes employment disputes, and what conditions apply, such as reporting a problem promptly
- whether your management liability policy includes employment practices cover, and what it excludes
- what limits and excesses apply
Policies differ, so please don’t rely on this as a guide to your own cover. The best time to find out is before a problem arises, not after.
How L Wood can help
We can review your current policies, explain the wording in plain English, and talk through whether there are gaps worth looking at. We can also share practical risk management advice to help you put sensible steps in place. This article is general information rather than legal advice, so for the detail of your obligations, speak to an employment law adviser or ACAS.
Talk to us
To find out more and to discuss your needs, please contact us on 01274 515747 or email mail@lwood.co.uk. We’re here Monday to Friday, 8:30am to 5pm.