Why employers need to act now
The legal landscape around workplace harassment has changed significantly. Under the Worker Protection Act 2023 and the Employment Rights Act 2025 (ERA 25), employers now have a positive, proactive duty to prevent harassment from occurring. The law no longer allows employers to wait until a complaint is raised before taking action.
Instead, organisations must anticipate risks, identify potential issues, and take reasonable preventative steps before incidents arise.
Understanding the three types of harassment
To meet their legal obligations, employers need to understand the three distinct legal routes through which harassment claims can arise.
General harassment relates to unwanted conduct connected to a protected characteristic under the Equality Act 2010, such as age, race, religion, disability, sex, or sexual orientation.
Sexual harassment involves unwanted conduct of a sexual nature. Employers already have a legal duty to take reasonable steps to prevent sexual harassment, and ERA 25 will raise the standard further by requiring employers to take all reasonable steps.
Third-party harassment, which comes into effect in October 2026, will make employers potentially liable for harassment carried out by customers, clients, patients, contractors, and other third parties unless they can demonstrate they took all reasonable steps to prevent it.
The employer’s legal duty
Preventing harassment is not solely an HR responsibility. Business owners and senior leaders carry the ultimate legal responsibility for ensuring the organisation has effective systems and safeguards in place.
Employers can be held vicariously liable for acts of harassment committed by employees during the course of employment, regardless of whether management knew about or approved the conduct. The key defence is being able to demonstrate that all reasonable preventative steps were taken.
What do ‘all reasonable steps’ look like?
The Equality and Human Rights Commission (EHRC) guidance provides a practical framework for employers. Key areas include:
- Maintaining clear, accessible anti-harassment policies.
- Engaging regularly with employees to identify concerns and emerging risks.
- Conducting and reviewing workplace risk assessments.
- Providing multiple channels for reporting concerns, including anonymous reporting.
- Delivering regular, tailored training for employees and managers.
- Responding quickly and appropriately to complaints.
- Implementing measures to prevent third-party harassment.
- Monitoring incidents, analysing trends, and continually reviewing policies and training.
Preventative measures should be embedded into everyday business practices rather than treated as standalone compliance exercises.
The critical role of line managers
Line managers are often the first to become aware of workplace issues and therefore play a vital role in prevention.
Managers should:
- Model respectful behaviour and uphold company standards.
- Recognise early warning signs of inappropriate conduct.
- Take immediate action when concerns are raised or witnessed.
- Escalate issues appropriately and avoid making promises of complete confidentiality.
Failing to equip managers to fulfil these responsibilities can significantly increase both legal and cultural risks.
The consequences of inaction
The cost of getting this wrong can be significant.
Employment Tribunals can increase compensation awards by up to 25% where an employer has failed in its preventative duties. In addition, the Equality and Human Rights Commission has powers to investigate organisations and issue enforcement notices.
Beyond financial penalties, organisations also face reputational damage, reduced employee trust, and increased employee relations issues.
What recent cases tell employers
Recent case law consistently reinforces one message: having policies on paper is not enough.
Tribunals expect employers to demonstrate that policies are actively implemented, training is effective and regularly refreshed, and workplace culture is continuously monitored.
At the same time, the courts have confirmed that the statutory defence remains achievable for employers that can evidence robust policies, meaningful training, active oversight, and a genuine commitment to preventing harassment.
Key takeaway
The strengthened duty to prevent workplace harassment represents a fundamental shift from reactive complaint handling to proactive risk management. Employers should be reviewing their policies, training, reporting mechanisms, and workplace culture now to ensure they can demonstrate that they have taken all reasonable steps to prevent harassment before the new obligations take full effect.
