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Understanding the third-party harassment duty for employers

24 October 2024

The Employment Rights Bill (ERB) is set to introduce a landmark requirement for UK employers to actively prevent harassment by third parties, including customers, clients, and suppliers. This shift in workplace law aims to close gaps in existing protections and significantly expand employers' duties to safeguard employees. The third-party harassment duty will obligate employers to take comprehensive measures to prevent harassment based on any protected characteristic.

A new era in workplace protections

Under the current legal framework, there is no specific duty for employers to protect staff from harassment by non-employees. Although the Equality Act 2010 once included third party harassment provisions, they were removed in 2013, leaving a gap in employee protections. The ERB seeks to remedy this by introducing a duty to prevent all forms of third-party harassment, allowing affected employees to bring claims to employment tribunals without having to demonstrate multiple prior incidents.

Key provisions of the Employment Rights Bill

The new legislation will hold employers accountable for any third-party harassment unless they can show that they took "all reasonable steps" to prevent it, a standard higher than what many businesses may currently follow. The ERB is expected to be enforced by 2026, but legal experts are urging businesses to act now to update their policies and procedures. Employers will be expected to conduct risk assessments, implement anti-harassment policies, and train staff on how to handle harassment from third parties.

Risk assessments: a crucial first step

The ERB requires employers to carry out detailed risk assessments to identify potential harassment risks in various workplace settings, such as client meetings, training sessions, or company-hosted social events. These assessments should evaluate how harassment risks can be mitigated or avoided, depending on the nature of the business and its interactions with the public.

Updating workplace policies and training

Companies will need to revisit their policies and employee handbooks to ensure that they clearly outline anti-harassment measures, including procedures for dealing with third-party harassment. Additionally, contractual agreements with external parties may need to be revised to include specific anti-harassment clauses. Employee training will play a critical role, ensuring staff at all levels understand what constitutes harassment and how to respond to incidents.

Potential penalties for non-compliance

Failure to comply with the new requirements could expose employers to significant legal and financial consequences. Employees who successfully prove harassment claims may be entitled to increased compensation, with tribunals having the power to add up to 25% to the awarded amount if an employer is found to have breached their duty. The Equality and Human Rights Commission (EHRC) may also investigate non-compliant companies and take enforcement actions.

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