How the Employment Rights Act is changing rules on harassment

Review your workplace culture, policies and reporting routes in light of the upcoming substantial changes to harassment laws

Situation before reforms under the Employment Rights Act 2025

harassment is defined as unwanted conduct related to a protected characteristic (for example, age, sex, disability, race etc.) that has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating, or offensive environment. 

Sexual harassment fits the same definition as above but the unwanted conduct is of a sexual nature. It also covers less favourable treatment because a worker rejects or submits to unwanted conduct of a sexual nature. 

Employers have long been liable for harassment if one of their employees harasses a colleague (in respect of any of the protected characteristics) in the course of their employment. Employers have a defence only if they can show they took ‘all reasonable steps’ to prevent the employee from carrying out that harassment. 

A new anticipatory duty on employers to prevent sexual harassment was introduced in October 2024. Since then, employers have been required to take ‘reasonable steps’ to prevent sexual harassment of their workers in the course of their employment.  The Equality and Human Rights Commission (EHRC) guidance includes examples of actions which might amount to ‘reasonable steps’. Failure to comply with the anticipatory duty can result in enforcement action by the EHRC, regardless of whether an individual brings a claim. In addition, employment tribunals can increase the compensation awarded by up to 25% where an individual brings a successful sexual harassment claim if the employer has not complied with its anticipatory duty.

Employers are not generally liable for harassment if their workers are harassed by third parties, such as customers and clients. However, the position is slightly different for the anticipatory duty to prevent sexual harassment, as the EHRC guidance states that taking reasonable steps includes taking reasonable steps to prevent third-party harassment.  

 ‘Qualifying disclosures’ for whistleblowing purposes did not expressly include sexual harassment complaints.

So what’s changed/changing and when?

From 6 April 2026, sexual harassment counts explicitly as a ‘qualifying disclosure’ for whistleblowing purposes.

The requirement in the anticipatory duty to prevent sexual harassment to take ‘reasonable steps’ will be amended so that employers must instead take all reasonable steps. This is expected to come into effect in October 2026. 

Also expected in October 2026 is that employers will be held accountable if their employees are harassed by third parties in the course of employment and the employer cannot show that they took all reasonable steps to prevent the harassment. This applies to every type of harassment, not just sexual harassment. 

Regulations should in future (not before 2027) set out what an employer must do to qualify as having complied with their anticipatory duty to take ‘all reasonable steps’ to prevent sexual harassment. It remains to be seen how these steps will differ from the current recommendations in the EHRC guidance on sexual harassment at work.

What you need to do

• Check your existing policies and arrangements, including workforce and manager training, to give you the best chance of avoiding – or, if not, defending – harassment claims under the existing legislation and of easing the transition to the new law. 
• Examine your organisation’s culture. Is inappropriate conduct called out, or do workers fear reporting it because they think nothing will be done? Consider surveying workers to understand their view on workforce culture.
• Review how you handle sexual harassment complaints so they are dealt with appropriately and consistently across the organisation.  Do you have a clear way for workers to report incidents to HR, or a whistleblowing hotline? Do the people likely to receive complaints know what to do? 
• Ensure you have a sexual harassment risk assessment in place for all parts of your business.
• Consider the risk of third-party harassment. Which sectors of your workforce interact with third parties and in what circumstances? Have you previously had issues with sexual or other forms of harassment of your staff by third parties? Are there any measures which you could implement now to reduce the risk?
• Update policies (including your equality policy, anti-harassment and bullying policy, whistle blowing policy, grievance policy etc.) as well as your sexual harassment risk assessment and action plans.

How Bhayani Law can help you

Bhayani Law supports employers in managing harassment risks and complying with both current and upcoming legal requirements. We can assist by reviewing and updating workplace policies, advising on appropriate training for managers and staff, and helping you carry out sexual harassment risk assessments tailored to your organisation.

Already getting support from Bhayani Law?

You’ll receive updates from us as key legal changes come in, so you can stay compliant and up to date. 

Detailed HR and employment law guidance and template policies, and letters can also be found in the Watertight HR Hub. 

If you’ve got questions or need advice, your dedicated advisor is on hand to help. We can deliver workforce sexual harassment and other harassment training, line manager training and HR policy reviews.

Our HR and legal team can also provide hands-on support on any projects as you prepare for these changes. 

New to Bhayani Law?

You don’t have to face the changes alone. Whether you need quick input or ongoing support, we can help you however works best for your business.