TRW & Co · UK employment law
The Employer Duty to Prevent Sexual Harassment
The sexual harassment duty employers in Great Britain must meet is now one of the most demanding in employment law. From 30 October 2026, employers must take all reasonable steps to prevent sexual harassment and are liable for harassment by third parties. This guide explains the law, the 25% uplift, EHRC enforcement and a practical compliance plan.
Key pointBreach of the preventative duty does not need an incident: the EHRC can act on a failure to take steps alone. And because the third-party rule no longer requires knowledge of previous incidents, waiting for a complaint before addressing client and customer risk leaves an employer exposed.
At a glance
Standard raised
From 30 October 2026, section 40A of the Equality Act 2010 requires employers to take all reasonable steps, not just reasonable steps, to prevent sexual harassment.
Third-party liability
Employers are liable for harassment of employees by clients, customers and other third parties unless they took all reasonable steps to prevent it.
25% compensation uplift
Where a tribunal upholds sexual harassment and finds the preventative duty was breached, it can increase compensation by up to 25%.
Regulator can act
The EHRC can investigate and enforce the duty even where no harassment has yet occurred, including through unlawful act notices and action plans.
Longer to claim
For acts on or after 1 October 2026, most tribunal claims, including harassment claims, can be brought within six months rather than three.
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The sexual harassment duty employers now face: the short answer
The sexual harassment duty employers in Great Britain must meet became stricter on 30 October 2026. Since October 2024, employers have had a positive legal duty under the Equality Act 2010 to take reasonable steps to prevent sexual harassment of their employees. The Employment Rights Act 2025 has now raised that standard to all reasonable steps, and made employers liable for harassment by third parties such as customers, clients and contractors unless they took all reasonable steps to prevent it.
The duty is anticipatory. It does not wait for a complaint. An employer can be in breach even if no harassment has yet occurred, and the Equality and Human Rights Commission (EHRC) can take enforcement action on that basis alone.
Where a tribunal upholds a sexual harassment claim and finds the employer breached the preventative duty, it can increase compensation by up to 25%. Discrimination compensation is uncapped, so the uplift can be substantial.
As of October 2026, the practical message is simple: a policy on its own is not enough. Employers need a documented risk assessment, training, reporting routes, controls on third-party contact and evidence that they review and act on what they learn.
The legal framework: from reasonable steps to all reasonable steps
The preventative duty sits in section 40A of the Equality Act 2010. It was inserted by the Worker Protection (Amendment of Equality Act 2010) Act 2023 and came into force on 26 October 2024. Section 40A requires an employer to take reasonable steps to prevent sexual harassment of its employees in the course of their employment.
The Employment Rights Act 2025 changes
The Employment Rights Act 2025 makes three connected changes, brought into force on 30 October 2026 by the Commencement No. 6 Regulations:
- All reasonable steps. Section 20 amends section 40A so that employers must take all reasonable steps, the same language used in the long-standing defence to vicarious liability.
- Third-party harassment. Section 21 makes employers liable where an employee is harassed by a third party in the course of employment, unless the employer took all reasonable steps to prevent it.
- Power to specify steps. Section 22 allows the government to make regulations setting out steps that are to be regarded as reasonable. Those regulations are expected to follow consultation and were not in force as of October 2026.
Other relevant provisions
Harassment itself is defined in section 26 of the Equality Act 2010 and covers unwanted conduct of a sexual nature, as well as harassment related to a protected characteristic and less favourable treatment for rejecting or submitting to sexual conduct. Employers are vicariously liable for harassment by their staff unless they show they took all reasonable steps to prevent it.
Since 6 April 2026, a disclosure about sexual harassment can also be a qualifying disclosure for whistleblowing purposes. Separate provisions on confidentiality clauses in harassment and discrimination cases depend on further regulations, expected in 2027. For more on whistleblowing, see our guide to whistleblowing protection.
The duty applies in England, Wales and Scotland. Northern Ireland has separate equality legislation, so employers with NI staff need specific advice.
What the sexual harassment duty employers owe means in practice
"All reasonable steps" is an objective test. A tribunal asks what steps were reasonable for this employer, in this sector, given its size, resources and the risks its staff actually face, and whether the employer took all of them. Cost is relevant, but a step is not unreasonable simply because it costs money.
The EHRC's technical guidance on sexual harassment and harassment at work, updated in September 2024, is the key reference. It is not a statutory code, but tribunals and the EHRC itself are likely to treat it as the benchmark. The EHRC also publishes a shorter eight-step guide for employers.
Under the vicarious liability case law, tribunals have long held that stale, unrefreshed training and a policy that sits unread on an intranet do not amount to all reasonable steps. The same thinking now applies to the preventative duty, so the sexual harassment duty employers carry is measured by what actually happens in the workplace, not what the handbook says.
The steps that usually matter
- A risk assessment that identifies where harassment is most likely: lone working, alcohol at events, power imbalances, customer-facing roles, remote and hybrid work.
- A clear, accessible policy with examples, reporting routes and consequences.
- Regular, interactive training, including for managers on how to receive complaints and for bystanders on how to intervene.
- Several reporting channels, including at least one outside the line management chain, and an option to report anonymously.
- Prompt, fair investigations with interim protective measures and support for the complainant.
- Monitoring of reports and outcomes, and board-level oversight of trends.
Implementing the duty: a step-by-step plan
For most organisations, meeting the sexual harassment duty employers now carry is a project rather than a policy refresh. Small employers are not exempt, although what is reasonable for a ten-person business will differ from what is expected of a large group with an HR function. The sequence below reflects how the duty is assessed in tribunal and by the regulator.
- Assign ownership. Make a named senior leader accountable and report progress to the board or management committee.
- Assess the risk. Map where and how staff could be harassed, including by colleagues, clients, customers, suppliers and members of the public. Record the assessment and date it.
- Update the policy. Cover third parties explicitly, explain reporting routes and protection from victimisation, and make the policy easy to find.
- Train and communicate. Deliver role-specific training, refresh it on a set cycle, and keep attendance and content records.
- Control third-party risk. Add conduct terms to customer and supplier contracts, display notices, set escalation rules and give staff authority to end interactions.
- Handle complaints well. Train investigators, set timescales, use interim measures and keep the complainant informed.
- Monitor and review. Analyse reports, exit interviews and surveys, update the risk assessment after incidents, and record the changes made.
Date-stamp everything. In tribunal and in an EHRC investigation, the employer has to prove what steps it took and when. A risk assessment, training log and review minutes created before an incident are far more persuasive than anything written afterwards.
Third-party harassment: how the sexual harassment duty employers owe reaches customers and clients
From 30 October 2026, an employer is liable where a third party harasses an employee in the course of employment and the employer failed to take all reasonable steps to prevent it. The liability extends to harassment related to protected characteristics, not only sexual harassment. It does not depend on the employer having known of previous incidents, unlike the old third-party rule that was repealed in 2013.
Exposure is highest in hospitality, retail, healthcare, transport, events and client-facing professional services. In professional firms, the risk often comes from client entertainment, travel and secondments rather than the office itself.
| Issue | 26 October 2024 to 29 October 2026 | From 30 October 2026 |
|---|---|---|
| Standard of the preventative duty | Reasonable steps to prevent sexual harassment of employees | All reasonable steps |
| Harassment by third parties | Relevant to the preventative duty, but no separate claim for third-party harassment | Employer liable unless it took all reasonable steps to prevent it |
| Characteristics covered by third-party liability | Not applicable | Harassment related to protected characteristics, as well as sexual harassment |
| Compensation uplift | Up to 25% where sexual harassment is found and the duty was breached | Up to 25%, now measured against the stricter standard |
| EHRC enforcement | Available without any incident having occurred | Unchanged |
| Time limit to claim | Three months less one day (plus early conciliation) until acts on or after 1 October 2026 | Six months for acts on or after 1 October 2026 |
Practical controls include conduct clauses in client contracts, a clear statement to customers that harassment will not be tolerated, rotation or pairing for high-risk visits, and a rule that staff will be supported if they refuse to continue a meeting or service.
Enforcement: tribunals and the EHRC
There are two routes. First, an individual can bring a harassment claim in the Employment Tribunal. Breach of the preventative duty is not a free-standing claim for an individual, but where sexual harassment is upheld the tribunal can consider whether the duty was breached and uplift compensation by up to 25%.
Secondly, the EHRC can enforce the duty directly under the Equality Act 2006. It can investigate, issue an unlawful act notice, require an action plan and enter into binding agreements with employers. It does not need a specific incident or complaint to act. Public enforcement brings reputational risk well beyond the cost of any single claim.
Because the sexual harassment duty employers owe is enforceable by a regulator as well as through claims, boards should treat it like any other compliance obligation: with a named owner, a budget, periodic reporting and an audit trail. Where an employer holds employment practices liability insurance, check what the policy requires on notification and cooperation if a complaint is made.
Regulators in some sectors also treat sexual misconduct as a conduct and culture issue. Financial services firms, for example, should consider how harassment findings interact with fitness and propriety assessments and regulatory references.
Illustrative scenario: a client entertainment complaint
This scenario is illustrative only. It does not describe any real client or outcome.
A junior associate at a consultancy attends a client dinner. A senior manager at the client makes repeated sexual comments and touches her arm. She tells her line manager the next morning. The manager tells her that the client is important and suggests she avoids sitting next to him in future.
After 30 October 2026, the consultancy faces potential liability for the client's conduct unless it can show it took all reasonable steps to prevent it. The questions a tribunal would ask include whether the firm had assessed the risk at client events, whether its policy covered third parties, whether managers were trained to respond, and whether the client relationship terms addressed conduct.
The line manager's response is also a problem. Minimising the complaint may itself amount to further unwanted conduct or victimisation risk. A well-prepared firm would record the complaint, offer support, remove her from the account if she wished, raise the conduct formally with the client, and update its risk assessment for client events.
If the associate brings a sexual harassment claim and it succeeds, the firm's compensation exposure could rise by up to a quarter for breach of the preventative duty. For employers handling a live complaint, our discrimination and harassment team advises on investigation and response.
Risks and common mistakes
Relying on a policy and annual e-learning
A generic policy and a click-through module are the baseline, not the duty. Tribunals have repeatedly found that training which was stale or had no visible effect did not amount to all reasonable steps in the vicarious liability defence. The EHRC guidance expects a risk-based approach tailored to the organisation. Refresh training regularly, make it interactive, and tailor content for managers, investigators and customer-facing staff. Record who attended and test understanding.
Ignoring third parties until a complaint arrives
Third-party liability now arises from 30 October 2026 without any requirement that the employer knew of earlier incidents. Waiting for a complaint is too late. Map client, customer and supplier contact, add conduct terms to contracts, and give staff a clear route to report and step away. Contract terms with major clients should allow the employer to raise and escalate concerns without breaching confidentiality or commercial obligations.
Poorly handled investigations
Delay, investigators with a conflict of interest, failure to interview witnesses and outcome letters that give no reasons all undermine the defence. They can also lead to separate claims for victimisation or constructive dismissal. Train investigators, use external investigators for senior or sensitive allegations, protect the complainant during the process and keep a full record. Our corporate investigations team can run or review an investigation where independence matters.
Using confidentiality clauses to close complaints
Settlement terms that try to stop a worker reporting harassment to a regulator, the police or a lawyer are unenforceable in key respects and attract regulatory criticism. Further restrictions on confidentiality clauses in harassment and discrimination cases are expected through regulations in 2027. Draft any confidentiality term narrowly and include clear carve-outs. See our guide to settlement agreements.
Cross-border teams and international groups
The duty applies to employees working in Great Britain, and can reach staff abroad where their employment has a sufficiently strong connection with Great Britain. Groups based overseas should not assume that a group-wide code of conduct written for another jurisdiction meets the sexual harassment duty employers in Britain owe.
Many organisations headquartered in Bangladesh, the Gulf or Singapore run UK offices with staff who travel regularly for client work. Risk assessments should cover overseas travel, local hospitality customs and the conduct of overseas colleagues and clients towards UK-based staff. Our Dhaka and London offices work together on group policies that satisfy UK law while remaining workable across jurisdictions.
What to do next: a compliance checklist
- Name a senior owner and set board reporting on harassment risk.
- Complete and date a written risk assessment covering staff, third parties, events, travel and remote work.
- Update the anti-harassment policy to cover third parties explicitly.
- Refresh training for all staff, with extra modules for managers and investigators.
- Add conduct and escalation terms to key client, customer and supplier contracts.
- Offer several reporting channels, including one outside line management.
- Review settlement and confidentiality templates.
- Monitor reports and outcomes, and record what changes as a result.
The sexual harassment duty employers must now meet rewards organisations that can show their work. Our employment law team advises on policies, training programmes, risk assessments and contract terms, and acts in tribunal claims. To review your approach, contact our London office.
Frequently asked questions
01What is the employer's duty to prevent sexual harassment?
Under section 40A of the Equality Act 2010, employers must take steps to prevent sexual harassment of their employees in the course of their employment. The duty began on 26 October 2024 as a duty to take reasonable steps. From 30 October 2026, the Employment Rights Act 2025 raised it to all reasonable steps. It is a proactive, anticipatory duty: employers must assess risk and act before anything happens, rather than only responding to complaints. It applies in England, Wales and Scotland.
02What does 'all reasonable steps' mean?
It is an objective test of whether the employer took every step that was reasonable in its circumstances, considering size, resources, sector and the actual risks staff face. Cost is relevant, but a step is not unreasonable just because it costs money. In practice tribunals and the EHRC look for a documented risk assessment, a clear policy, effective and refreshed training, accessible reporting routes, proper investigations and evidence of monitoring and review. The government can make regulations specifying steps that count as reasonable, but none were in force as of October 2026.
03Are employers liable for harassment by customers or clients?
Yes, from 30 October 2026. The Employment Rights Act 2025 makes employers liable where an employee is harassed by a third party, such as a customer, client, contractor or member of the public, in the course of employment, unless the employer took all reasonable steps to prevent it. The liability covers harassment related to protected characteristics as well as sexual harassment. Unlike the previous third-party rule repealed in 2013, there is no requirement for the employer to know of earlier incidents.
04Can an employee sue just for breach of the preventative duty?
No. An individual cannot bring a stand-alone tribunal claim for breach of the preventative duty. The duty becomes relevant when a tribunal upholds a sexual harassment claim: it can then consider whether the employer breached the duty and increase compensation by up to 25%. Separately, the EHRC can enforce the duty directly, using its powers under the Equality Act 2006 to investigate, issue unlawful act notices, require action plans and enter binding agreements, without any individual claim.
05What should a sexual harassment risk assessment include?
It should identify where and how staff could be harassed, by colleagues and by third parties. Typical factors include lone or night working, alcohol at events, travel, client-facing roles, power imbalances, remote work and online communication. For each risk, record the controls in place, any gaps and the actions planned, with owners and dates. Review it after incidents and at regular intervals. A dated risk assessment is often the first document the EHRC or a tribunal will ask to see.
06Does the duty apply in Northern Ireland?
No. The Equality Act 2010 preventative duty and the Employment Rights Act 2025 changes apply in Great Britain: England, Wales and Scotland. Northern Ireland has its own equality legislation and enforcement body, and the rules on employer liability for harassment differ. Employers with staff in Northern Ireland should take separate advice and avoid assuming that a GB policy satisfies NI law.
Sources and official materials
- Equality Act 2010, section 40A — Employer duty to prevent sexual harassment of employees
- Worker Protection (Amendment of Equality Act 2010) Act 2023 — Introduced the preventative duty and 25% uplift
- Employment Rights Act 2025 — All reasonable steps and third-party harassment
- Employment Rights Act 2025 (Commencement No. 6) Regulations 2026 — Brings sections 20 to 22 into force on 30 October 2026
- EHRC: Sexual harassment and harassment at work technical guidance — Regulator's guidance on the preventative duty
- Equality Act 2006, section 21 — EHRC power to issue unlawful act notices
General information only, current as at 21 October 2026. It is not legal advice and does not create a solicitor–client relationship. It reflects the law of England and Wales unless stated otherwise; Scotland and Northern Ireland have separate legal systems, and the law changes frequently. Check current official sources and take advice on the facts of your matter.