Sexual Harassment Law is Changing! Here’s What SME Employers Need to do Now
- 1 day ago
- 4 min read
Ask yourself: If a sexual harassment complaint landed on your desk tomorrow, could you evidence the steps your business had already taken to prevent it? If the answer is uncertain, now is the time to act.
From 30 October 2026, the legal duty on employers to prevent sexual harassment at work is getting stronger. The Employment Rights Act 2025 raises the standard from taking reasonable steps to taking all reasonable steps.
A new obligation is also being introduced: employers must not permit employees to be harassed by third parties: customers, clients, contractors, or members of the public.
For SMEs, this is significant. Having a policy in place is no longer enough. You'll need to show you've actively considered the risks in your specific workplace and taken proportionate action to prevent harassment before any incident occurs.
What's actually changing?
The current preventative duty has applied since October 2024. From 30 October 2026, the bar is higher - employers must consider every reasonable and proportionate step available to their business, and the government may introduce regulations specifying particular steps employers are required to take.
In practice, this means if a complaint is raised, the focus will be on what you had already done, not just how you responded.
Your practical checklist
Review your policies: Make sure your sexual harassment, bullying & harassment and equality policies are clear, current, and written in plain language that both employees and managers can actually understand.
Carry out a workplace risk assessment: Think about where and when harassment could occur. Consider customer-facing roles, lone working, work events, remote communication, alcohol, late-night working, and any seniority imbalances.
Address third-party risks: Review how your business manages situations involving customers, clients, or contractors. Commercial relationships are never a reason to tolerate harassment.
Prepare your managers: Managers need to know how to recognise concerns, respond appropriately, and escalate promptly. Dismissing behaviour as "banter" is not acceptable.
Deliver meaningful training: Training should be relevant to your workplace. Keep records of who completed it and when.
Create clear reporting routes: Employees should have more than one way to raise a concern, and they should feel confident it will be taken seriously.
Keep your records: Document your policies, risk assessments, training, and any complaints or investigations. If a claim is ever brought, this evidence matters.
Need help reviewing your policies, carrying out a risk assessment, or training your managers? Robinson Grace HR Consultancy works with SMEs across the South of England to get these things in order, practically and without the jargon. Find out more at www.robinsongracehr.com.
Frequently Asked Questions:
1. Can an employer be liable if a customer or client sexually harasses an employee?
Answer: Yes. From 30 October 2026, employers have a legal duty not to permit employees to be subjected to third party harassment by customers, clients, contractors, suppliers, or members of the public.
This means employers should assess where third party harassment could occur, particularly in customer facing roles, reception areas, hospitality settings, healthcare, education, retail, and field-based work. Appropriate control measures may include staff training, reporting procedures, clear expectations for customer behaviour, and taking action when inappropriate conduct occurs.
Ignoring harassment because it involves a valuable customer or client is unlikely to meet the legal requirement to take all reasonable steps to prevent sexual harassment.
2. What should a workplace sexual harassment risk assessment include?
Answer: A sexual harassment risk assessment helps employers identify situations where employees may be at greater risk of harassment and decide what preventative measures are appropriate.
A workplace risk assessment should consider factors such as:
Customer facing roles
Lone working
Work related social events
Remote and online communications
Alcohol at work functions
Late night or isolated working
Power imbalances between managers and employees
Contractors, agency workers, and visitors
Once risks have been identified, employers should implement proportionate measures such as updated policies, manager training, employee awareness training, improved reporting channels, and regular reviews of workplace practices.
Keeping written records of risk assessments and the actions taken will help demonstrate compliance with the Employment Rights Act 2025 if an employment tribunal claim is made.
3. How can employers prove they have taken 'all reasonable steps' to prevent sexual harassment?
Answer: There is no prescribed checklist that applies to every employer, but businesses should be able to demonstrate that they have taken proactive and proportionate measures to prevent sexual harassment. This may include maintaining up to date policies, carrying out documented workplace risk assessments, providing regular sexual harassment training, keeping records of completed training, investigating complaints promptly, and reviewing workplace practices where risks are identified.
The steps expected will depend on factors such as the size of the business, the nature of the work, and the level of risk. If a claim is brought before an Employment Tribunal, employers are likely to be expected to provide evidence of the preventative measures they had in place before the incident occurred.
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The content of our blogs is intended for general information and not to replace legal or other professional advice.
Sexual Harassment Law is Changing! Here’s What SME Employers Need to do Now
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