New Sexual Harassment Laws

The Act Did you know that from October 2024 all employers must prove they are taking reasonable steps to prevent sexual harassment, including third party harassment in the workplace. Whether you have taken some reasonable steps or if you have not taken any, you are immediately exposed and must follow the full duty. What if it goes wrong? If you fail to act on the duty, it is likely it will lead to employment tribunal claims of sexual harassment and the employer will be vicariously liable whether the harassment has been carried out by employees, contractors, customers or members of the public. Simply having a policy in place is not sufficient.

1. Legal Consequences

• Employment Tribunal Claims – cost of managing and defending any claims
• Third-Party Harassment Liability – Employers may also be responsible for sexual harassment by customers, clients, or suppliers, meaning they could face claims even if the harasser is not an employee.
• Breach of Health & Safety Regulations – If harassment creates a hostile work environment that impacts employees' well-being, employers could face additional health and safety enforcement action.

2. Financial Consequences

• Compensation Payouts – Tribunal awards for sexual harassment claims can be significant, covering injury to feelings, loss of earnings, and aggravated damages. If a tribunal finds that an employer has failed to take reasonable steps, they can impose uplifted compensation (up to 25% more in damages).

• Average sexual harassment awards are currently between £27,000 and £45,000.
• Legal Costs – Employers may have to cover expensive legal fees, both for defending claims and for settlements.
• Fines and Regulatory Penalties – The Equality and Human Rights Commission (EHRC) has the power to investigate and fine organisations that do not meet compliance requirements.

3. Reputational Damage

• Negative Publicity – Cases of workplace harassment can attract media attention, damaging the company’s brand and trust with customers, investors, and partners.
• Loss of Employee Trust – Employees may feel unsafe or unsupported, leading to higher turnover, low morale, and decreased productivity.
• Difficulty Hiring Talent – A poor workplace reputation can deter skilled professionals from joining the organisation.

4. Organisational Impact

• Lower Productivity – A workplace culture that tolerates harassment can result in increased absenteeism, stress-related illnesses, and disengaged employees.
• Disruptions to Business Operations – Internal investigations, disciplinary actions, and legal disputes take up valuable time and resources.
• Potential Leadership Accountability – Senior leaders and HR professionals may face personal consequences if they are found to have ignored or mishandled harassment complaints.

How can we support your needs? At The HR Branch Ltd we have experience in developing policies and delivering training across many different sectors and workforce types e.g. in manufacturing on the shop floor for large groups or for small groups of senior managers; we tailor delivery to different audiences and to suit your needs. Get in touch with us to find out how we can support you in ensuring that you are compliant with this new Duty. Attend an upcoming FREE webinar to keep your business up to date: Register Here