Employers should review their approach to workplace harassment as further provisions of the Employment Rights Act 2025 take effect. From 30 October 2026, employers must take “all reasonable steps” to prevent sexual harassment of their workers, strengthening the existing requirement to take reasonable steps. The changes also extend employers’ potential liability for harassment by third parties, such as customers or clients, where the employer has not taken all reasonable steps to prevent it. ACAS has published guidance on these changes and notes that some implementation details remain subject to consultation. ACAS guidance on the Employment Rights Act 2025.
For businesses, this is more than a matter of updating a policy. Employers need to consider whether their procedures, staff training and everyday working practices genuinely reduce the risk of harassment.
What is changing?
The strengthened duty places greater emphasis on prevention. Employers should not rely solely on having a written policy or dealing with complaints after an incident has occurred. They need to consider what practical measures are reasonable for their organisation, taking account of the nature of the work, the people involved and the situations in which risks may arise.
The third-party provision is particularly relevant to businesses whose employees regularly interact with members of the public, customers, suppliers or clients. Examples could include reception staff, hospitality workers, field-based employees, customer service teams and professionals working at client premises.
A business cannot necessarily prevent every inappropriate act by a third party. However, it should be able to demonstrate that it has identified foreseeable risks and taken appropriate steps to address them.
Why small businesses should pay attention
Smaller employers may not have a dedicated HR department, but the legal responsibilities still need to be managed. Informal arrangements that worked when a business had only a few employees may become inadequate as the organisation grows or takes on new types of work.
There can also be commercial consequences. Poorly handled complaints may damage staff morale, increase absence and turnover, undermine customer relationships and expose a business to legal costs. A clear, fair and well-communicated approach helps employees understand what is acceptable and gives managers a consistent process to follow.
Practical steps employers can take
- Review policies and procedures. Check that the harassment and dignity-at-work policies explain what constitutes unacceptable behaviour, how employees can raise concerns and how complaints will be handled. Make sure the wording reflects the strengthened prevention duty and the risks associated with third-party conduct.
- Identify where risks arise. Consider when staff may be exposed to inappropriate behaviour. This could include customer-facing roles, lone working, business travel, social events, online meetings and communications through messaging platforms. Ask employees for feedback where appropriate.
- Train managers and employees. Training should explain expected standards, how to challenge inappropriate behaviour safely, how to report concerns and how managers should respond. Managers need to know how to record a complaint, protect confidentiality where possible and avoid dismissing concerns as harmless banter.
- Establish clear reporting routes. Employees should know who they can approach if their manager is involved in a complaint or if they feel uncomfortable raising the issue through normal channels. Complaints should be taken seriously and handled promptly and fairly.
- Address third-party risks. Consider how staff should respond if a customer, client or supplier behaves inappropriately. Managers should be prepared to support employees, intervene where necessary and take proportionate action, which could include setting boundaries with a customer or changing working arrangements.
- Keep records and review the approach. Retain records of training, risk assessments, complaints and actions taken. Use this information to identify recurring problems and assess whether current measures are working.
Make prevention part of normal management
A policy is useful only if employees understand it and managers apply it consistently. Business owners should therefore treat harassment prevention as an ongoing management responsibility, rather than a document to update once and file away.
Employers should check the latest ACAS and government guidance because implementation details may develop. They should also seek appropriate employment-law or HR advice where they are uncertain about their obligations or how to handle a specific complaint.
Taking action now can help businesses build a safer workplace, protect their employees and demonstrate that concerns will be treated seriously.