Why employers must comply with sexual harassment law

All businesses are now required to establish a formal policy to comply with the new mandatory sexual harassment law, set to take effect later this month. This requirement, outlined in the Worker Protection Act 2023—an amendment to the Equality Act 2010—places an anticipatory duty on employers to implement preventative measures against workplace sexual harassment.

Compliance deadline of new sexual harassment law

The compliance deadline is 26 October 2024, and applies universally, with no exceptions for employer size or industry. This proactive approach aims to foster safer workplaces by obligating employers to take reasonable steps to mitigate risks of harassment before any incidents occur.

new sexual harassment law
new sexual harassment law

Current law for sexual harassment

Under current law, workers can file a claim for sexual harassment against their employer due to vicarious liability. This liability means that employers are held responsible for harassment committed by their employees during the “course of employment,” regardless of whether the employer was aware of or condoned the behaviour. Employers commonly defend against such claims by demonstrating that they took “all reasonable steps” to prevent harassment, such as implementing training and anti-harassment policies, which can serve as evidence of due diligence in safeguarding the workplace.

Looking ahead, employers will need to demonstrate that their preventive measures align with EHRC guidance. The specific steps required will differ based on each employer’s unique circumstances, including the organization’s size, the industry sector, and the risk factors within their workplace. This tailored approach allows for flexibility in meeting compliance while ensuring that preventive actions are relevant and effective in minimizing harassment risks.

 

Key Requirements Under the New Sexual Harassment Law

The Equality and Human Rights Commission (EHRC) recently published an eight-step guide to help employers meet their responsibilities under the new sexual harassment law. The guidance emphasizes that employers’ preventive duty includes addressing sexual harassment risks not only from employees but also from third parties—such as contractors, clients, customers, and members of the public—who may interact with workers in the course of their employment.

To ensure compliance with the new sexual harassment law, the Equality and Human Rights Commission (EHRC) recommends that employers implement an eight-step approach as a minimum standard. Here’s an expanded breakdown of each essential step:

1. Develop a Comprehensive Anti-Harassment Policy

Create a clear, accessible anti-harassment policy that outlines unacceptable behaviors, the consequences of such actions, and the procedures for reporting harassment. This policy should be prominently displayed and communicated across the organization to set a zero-tolerance standard for harassment

2. Engage and Involve Your Staff

Regularly communicate with employees to foster a respectful workplace culture. This could include staff meetings, surveys, or focus groups to discuss policy updates and encourage openness around reporting. Building engagement helps reinforce the importance of a harassment-free workplace

3. Assess and Mitigate Workplace Risks

Conduct thorough assessments to identify potential risk factors for harassment in the workplace. This includes examining factors such as power imbalances, isolated or lone working environments, frequent client or public interactions, and even aspects like workplace culture. Once identified, implement targeted measures to address these risks, such as improved supervision, changes to the physical environment, or additional support for at-risk roles. Regular risk assessments not only help in anticipating and reducing the chances of harassment but also demonstrate proactive compliance with the new law

4. Establish Clear Reporting Procedures

Set up straightforward, confidential channels for employees to report harassment incidents. Options like anonymous reporting or designated contact points ensure that employees feel safe and supported when coming forward with concerns

5. Implement Regular Training Programs

Provide regular, comprehensive training to all employees and management on recognizing, preventing, and addressing harassment. This training should cover company policies, legal responsibilities, and practical strategies for maintaining a respectful environment

6. Outline Clear Steps for Handling Complaints

Define a structured process for responding to harassment complaints. This includes investigating reports promptly, ensuring confidentiality, and providing support for those involved. A clear process builds trust and demonstrates the organization’s commitment to addressing issues responsibly

7. Address Third-Party Harassment

Develop guidelines to handle harassment from external individuals, such as contractors, clients, and customers. Given the duty to prevent harassment by third parties, ensure policies cover these interactions and provide staff with guidance on managing potentially risky situations.

8. Monitor and Evaluate Actions Regularly

Continuously review and assess the effectiveness of harassment prevention measures. This may include analyzing reports, gathering employee feedback, and adjusting policies or training as needed to ensure an evolving and proactive approach

 

Workers’ rights

Employees have the option to report concerns to the **EHRC** if they believe an employer has not met the **preventative duty** requirements. Importantly, the duty to prevent harassment is enforceable regardless of whether any incident has occurred. This means business owners and company directors must take proactive measures to ensure compliance, rather than waiting for issues to arise.

 

Consequences of Non-Compliance

Preventive measures should be customized to each organization and reviewed regularly, as the EHRC holds the authority to take action against employers who fail to comply. If it’s determined that an employer could have implemented stronger preventive measures, the EHRC can leverage its enforcement powers, including requesting a court injunction to prevent further unlawful actions. Additionally, the EHRC can establish a formal, legally binding agreement with the employer to ensure compliance and address potential future violations.

It’s essential to understand that sexual harassment claims in employment tribunals are uncapped, meaning there is no limit on the potential compensation. In cases where such a claim is raised, the tribunal will assess the employer’s compliance with the preventative duty. If it’s found that the employer did not sufficiently meet this duty, the tribunal may increase the compensation award by up to 25%. This additional increase poses a substantial financial risk for employers who fail to promptly implement the necessary preventive measures.

 

Next steps for business owners/directors

To prepare for compliance with the new sexual harassment law, businesses should begin with a comprehensive risk assessment to identify specific situations where employees may face heightened risks of harassment. This assessment involves evaluating various factors, such as job roles, work environments, and interactions with the public, which may contribute to potential harassment risks. Once these risks are identified, employers should take proactive steps to implement the EHRC’s eight-step guidance, ensuring that all policies, training, and preventive measures are in place well ahead of the 26 October 2024 deadline. Regular reviews and updates to these steps will further strengthen compliance and demonstrate a commitment to maintaining a safe and respectful workplace.

For support in aligning with the new legal requirements, get in touch with Naail & Co for a free initial consultation to ensure your policies and practices are comprehensive and compliant.

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If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We, at Naail & Co, are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

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