Preventing sexual harassment — how employers can meet the new 'all reasonable steps' duty

Originally published on 15 August 2024 and updated on 7 October 2026.

From 30 October 2026, the bar for employers is set to rise from taking ‘reasonable steps’ to taking ‘all reasonable steps’ to prevent sexual harassment. Employers also face a new liability for harassment by third parties, unless they can show that they took all reasonable steps to prevent it. 

This is more than mere semantics. The changes in the law — brought in by the Employment Rights Act (ERA) — represent a substantive shift in responsibility that will fall squarely at the feet of employers. While many businesses have updated policies and run training since 2024, the forthcoming changes will demand a more exhaustive, ongoing approach to prevention. 

Here, Kate Venables and Matt Lavelle from our employment team and Allana Edwards from our regulatory team explore what’s changing.

The current duty to prevent sexual harassment (from October 2024)

Since October 2024, employers have been under a positive duty to take reasonable steps to prevent sexual harassment in the workplace and in the course of employment. In practice, the duty requires employers to be proactive in identifying scenarios that place employees at greater risk of sexual harassment and take reasonable steps to prevent the harassment from occurring. 

In many businesses, this has resulted in mandatory training, refreshed anti-harassment policies, risk assessments and adjustments to higher-risk settings like office Christmas parties. 

However, the Government has been clear that the preventative duty doesn’t stop there. The changes coming into force in October 2026 emphasise that businesses should regard the preventative duty as more than a compliance exercise in that the requirements are both substantive and ongoing. 

What’s changing?

Prevention of sexual harassment

With effect from 30 October 2026 under the ERA, the law will set a significantly higher threshold by requiring employers to take all reasonable steps to prevent sexual harassment. 

Where an employee is sexually harassed in the course of employment, the employer may be liable unless it can demonstrate that it took all reasonable steps to prevent the harassment. Where sexual harassment is established and the employer has also breached its duty to take all reasonable steps to prevent it, tribunals may increase compensation by up to 25%. 

New liability for third party harassment

In addition — and in the context of harassment more generally — employers will be liable for harassment by third parties in the course of their employment. For example, where employees are subjected to discriminatory behaviour from contractors, customers or members of the public in a public-facing role or from clients or other business contacts at a work-related event. 

This applies to harassment related to a relevant protected characteristic under the Equality Act 2010 (i.e. sex, disability, age, race, gender reassignment, religion or belief and sexual orientation). This is consistent with the Equality and Human Rights Commission’s sexual harassment and harassment at work technical guidance which makes it clear that employers’ liability in that context extends to the actions of third parties. 

What counts as harassment? 

In this context, sexual harassment means unwanted conduct of a sexual nature that has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment.

Harassment connected to a protected characteristic is similarly unwanted conduct that has the same effect or purpose.

Some incidents will undeniably amount to harassment, whereas in others the position might not be so clear. In either case, the perception of the recipient of the unwanted conduct, other circumstances of the case and whether it’s reasonable for the conduct to have that effect are key. 

What does ‘all reasonable steps’ mean? 

While the Government has stated that regulations will be introduced that will help to clarify the position, they’re not yet in place and aren’t expected until 2027 or 2028 — well after the law changes. 

As such, employers will need to be informed by the Equality and Human Rights Commission’s (EHRC) existing eight-step framework and technical guidance to verify what reasonable steps should sensibly amount to within the context of their business operations. The EHRC states that taking all reasonable steps means that there are no further measures that an employer could reasonably be expected to take to prevent harassment. 

What’s reasonable will vary case by case, taking account of size, resources and risk profile. However, irrespective of size and resources, it’s clear that the increased obligation sets high expectations and an exhaustive approach to considering and implementing effective preventative measures will be crucial. 

As things stand, an employer might argue that they’ve complied with a duty to take reasonable steps even though, with hindsight, another sensible measure might have been taken. However, an obligation to take all reasonable steps indicates that failing to take one particular measure could result in the employer being held liable, even where they’ve implemented a number of other precautions.   

Preparing for third-party harassment risks

In relation to third-party harassment, a targeted assessment of risk will be necessary in roles and settings where employees regularly engage with members of the public, clients, customers or contractors.

From an operational and commercial perspective, consider the areas in which standards of conduct can be clearly set out. It may be appropriate to include statements on phone lines and live chats or display notices in customer-facing locations, making it clear that harassment won’t be tolerated. Likewise, expected behaviours and anti-harassment provisions may need to be included within commercial terms and conditions with third parties.   

What should employers do now? 

It’s vital to take time now to revisit prevention of harassment policies and training as part of an ongoing assessment of key risk areas within your business and what can be reasonably done to mitigate those risks.  

Ensure that reporting processes remain accessible and colleagues know how to recognise harassment and what to do if they receive a report. In conjunction with refresher training on anti-harassment, businesses may also wish to refresh disciplinary and grievance training with an emphasis on the importance of the scope of a thorough investigation. 

Finally, remember that the action you take to prevent harassment isn’t a one-stop shop but an ongoing obligation intended to shape culture and embed standards of behaviour — with the aim of employees carrying out their roles free from harassment of any kind. 

What happens if employers don’t comply?

While a breach of the duty to prevent sexual harassment doesn’t give rise to a standalone claim, employment tribunals have the power to increase any discrimination compensation awarded by up to 25% where an employee’s claim for sexual harassment has been upheld and the tribunal finds that the employer hasn’t complied with the duty. The EHRC can also take enforcement action against the employer. 

Compensation can cover various heads of loss, including injury to feelings, financial loss, aggravated damages and (in some cases) personal injury. It’s also important to note that there’s no statutory cap on the amount of compensation that can be awarded for sexual harassment claims. This means that in severe cases, awards can be substantial — particularly if a claimant can prove significant financial loss or severe injury to feelings. 

Furthermore, failure to investigate a complaint properly could potentially constitute a breach of the implied duty of trust and confidence, entitling the employee to resign and claim constructive unfair dismissal. Employers may be vicariously liable for the harassing actions of their employees if they can’t demonstrate that they took all reasonable steps to prevent such sexual harassment, including from third parties.

Sexual harassment in the workplace can also lead to the loss of valuable employees, have a negative impact on staff morale, discourage new talent from joining and result in significant reputational damage for employers through legal action and negative media attention.

Talk to us

If you'd like to discuss what the new obligations mean for your organisation and how best to prepare, we're here to help.

Our award-winning employment law specialists are helping employers to navigate the changes being introduced by the ERA, including the new duty to take all reasonable steps to prevent harassment. 

Whether you need support reviewing policies, updating training or understanding your obligations, our team can provide advice that’s tailored to your business and people.

Talk to us by calling 0333 004 4488, emailing hello@brabners.com or completing our contact form.