From 30th October 2026, employers will face tougher responsibilities when it comes to preventing harassment at work.
And there's an important change that every business needs to understand.
You could be held liable for harassment carried out by someone who doesn't even work for you.
We're talking about customers, clients, contractors, suppliers and members of the public.
What's Changing?
Under the Employment Rights Act 2025, two important changes come into effect on 30th October:
1. Employers must take ALL reasonable steps to prevent sexual harassment.
Previously, the law required employers to take reasonable steps. Now, the expectation is to take all reasonable steps appropriate to your business.
That means being proactive. Identifying risks, putting preventative measures in place and making sure they're actually working.
2. Employers can be held liable for third-party harassment.
If an employee experiences unlawful harassment from a customer, client, contractor or another third party, your business could be liable if you haven't taken all reasonable steps to prevent it.
And this isn't limited to sexual harassment. The new third-party protections extend to other forms of unlawful harassment too.
What Happens If You Don't Take Action?
If harassment occurs and you cannot demonstrate that you've taken all reasonable steps to prevent it, you could face an employment tribunal claim and potential compensation costs.
Tribunals can also increase compensation by up to 25% in successful sexual harassment claims where the preventative duty has been breached.
Having a policy tucked away in a handbook isn't enough. You need to show that you're actively protecting your people.
What Should You Be Doing Now?
Start with five practical steps:
Assess the risks. Consider where employees might experience harassment, particularly when dealing with customers, clients or working alone.
Review your policies. Make sure they cover third-party harassment and clearly explain what behaviour is unacceptable.
Train your people. Managers and employees need to recognise harassment and understand how to respond.
Make reporting easy. Everyone should know who to speak to, how to raise concerns and what happens next.
Keep records and review. Document the steps you've taken, any incidents reported and how you've responded.
What counts as reasonable will depend on your business, its size, the work you do and the risks involved.
Don't Wait Until Something Goes Wrong
We know there's a lot of employment law change for businesses to keep on top of at the moment.
And we also know that, when you're busy running a business, reviewing policies and carrying out risk assessments can easily slip down the list.
But this is one area you really cannot afford to overlook.
At Inspired HR, we're here to help you understand your responsibilities and put the right measures in place. From harassment risk assessments and policy reviews to manager training and practical HR advice, we'll help you get things right.
No unnecessary complications. No scaremongering. Just straightforward advice and support when you need it.
Not sure whether your business is prepared? Get in touch with the team.