The law on sexual harassment has developed significantly recently. What was once a reactive framework has been reshaped into one that is proactive and which places legal duties on the employer to prevent harassment from occurring in the first place. Employers will need to really think about the culture of the workplace and what more can be done to prevent harassment of their employees.

Current law

From October 2024, legislation introduced a positive duty on employers to take reasonable steps to prevent the sexual harassment of their employees in the course of their employment. The focus has shifted from reaction to prevention. In practice, employers must actively consider the risks of harassment and take preventative action. Simply having policies on paper are not sufficient. They need to demonstrate that the policies are effective in practice and the culture is one that does not tolerate inappropriate behaviour.

Upcoming changes

Sexual harassment

The upcoming change in October 2026 will further increase the legal duty on employers, whereby they will need to demonstrate to a tribunal that they have carried out “all reasonable steps” to prevent the sexual harassment of employees.

Whilst there is currently no definitive statutory list of what constitutes “all reasonable steps”, the Equality and Human Rights Commission (ECHR) have published some guidance on what they believe could support employers with this duty.

Key measures include:

Implementing a standalone sexual harassment policy
Conducting a sexual harassment risk assessment
Delivering regular, meaningful training for all staff and managers
Ensuring staff are aware of the clear reporting mechanisms
Appointing designated sexual harassment “champions” or “confidants”
Undertaking ongoing monitoring and review of workplace culture
Conducting a third-party harassment risk assessment (see below)

However, it is clear that having a policy is not enough. Tribunals will look at how employers have actively managed and implemented their preventative duty i.e. ensuring training is up to date, policies are actively communicated, concerns taken seriously and addressed promptly. It is crucial that employers can demonstrate that they have taken all reasonable steps to prevent sexual harassment.

Third party harassment

Another change coming into force in October 2026 concerns employers’ liability for third party harassment.

Employers will be liable where:

A third party (such as customers, clients, contractors, patients, students, interns, friend and family of colleagues, delegates at a conference and members of the public) has harassed an employee in the course of their employment
The employer has failed to take all reasonable steps to prevent it

Employers will be liable for third party harassment in relation to all relevant protected characteristics and all types of harassment (including sexual harassment).

This change will particularly impact those employers who are in sectors involving public interaction such as retail, hospitality, healthcare, and education.

The EHRC Code recommends the following proactive steps, depending on the size and resources of the employer:

Implementing and communicating a clear harassment policy that applies to third parties
Displaying visible notices advising third parties that harassment of its employees will not be tolerated and is unlawful
Including contractual provisions in contracts with third parties requiring them to comply with anti-harassment standards
Encouraging employees to report incidents involving third parties, and ensuring they are supported when they do

Consequences of non-compliance

The potential consequences for employers of failing to comply with their legal duty are significant:

Tribunals can apply a 25% uplift in compensation where employers fail to take reasonable preventative steps
The EHRC can take direct enforcement action, even where no claim has been brought
There is substantial risk of reputational damage and impact on employee and customer relations
Adversely affect recruitment and retention of employees

Wider reforms

These changes form part of a wider programme of employment law reform. The Employment Rights Act 2025 introduces a power for regulations to specify what reasonable steps an employer must take to prevent sexual harassment, which could provide greater clarity.

From April 2026, complaints of sexual harassment qualify as protected disclosures, strengthening whistleblowing protection.

The time limit for brining most employment tribunal claims will increase from three to six months, extending employers’ exposure to claims.

Conclusion

The direction of travel is clear. Employers are expected to take a proactive approach to preventing harassment. Policies alone will not be enough, and there will be a requirement for employers to demonstrate that they have actively identified any risks, implemented effective measures and fostered a culture where unacceptable behaviour is not tolerated. Employers should act now to review their policies, training, reporting mechanisms and risk assessments.

If you need advice on any matter related to the above, please get in touch with our Employment Team.