By Anthony Willis, BHP Law
Why employers can no longer afford to turn a blind eye.
For many employers, workplace harassment has traditionally been viewed as an internal issue. Policies, training and procedures have focused largely on conduct between colleagues.
That changes on 30 October 2026.
New provisions under the Employment Rights Act 2025 will significantly raise the bar for employers. Alongside a strengthened duty to prevent sexual harassment, employers will face potential liability for harassment committed by third parties, including clients, customers, suppliers, contractors and members of the public. The message is clear: preventing harassment is no longer simply a matter of responding to complaints when they arise. Employers are expected to take proactive, preventative action before problems occur.
The return of third-party harassment liability
One of the most significant changes is the introduction of new obligations relating to third-party harassment.
From 30 October 2026, employers may be liable where an employee is harassed in the course of their employment by a third party and the employer has failed to take all reasonable steps to prevent that harassment.
Third parties can include clients, customers, visitors, suppliers, contractors and service users.
Importantly, the protection is not limited to sexual harassment. It extends across all protected characteristics, including race, disability, religion or belief, age, sex, sexual orientation and gender reassignment.
Many employers will recognise situations where inappropriate comments, offensive jokes or discriminatory behaviour from customers have been dismissed as unfortunate but unavoidable aspects of frontline work.
That approach is becoming increasingly difficult to justify.
The reforms reflect growing expectations that employers should actively protect their workforce, regardless of where the risk originates.
One Small Word, one major change
Alongside the new third-party harassment provisions, employers should pay close attention to what appears to be a subtle amendment to the law on sexual harassment.
Since October 2024, employers have been required to take “reasonable steps” to prevent sexual harassment in the workplace. From October 2026, that duty becomes one to take “all reasonable steps”.
The addition of a single word may seem insignificant. In practice, however, it could prove transformative.
Rather than simply asking whether an employer took reasonable action, tribunals are likely to consider whether further reasonable preventative measures were available and, if so, why they were not implemented. Employers who cannot demonstrate a comprehensive approach may find it difficult to show compliance.
Why policies alone won’t save you
When new employment legislation arrives, there is often a rush to update handbooks and policies. While those documents remain important, employers should resist treating compliance as a paperwork exercise.
The real risk lies in the gap between written procedures and dayto-day practice. Tribunals are increasingly focused on evidence. Employers may need to demonstrate that they have assessed risks, trained managers, communicated expectations, encouraged reporting and responded appropriately to concerns.
An anti-harassment policy that sits unread in a handbook is unlikely to carry much weight. The focus is shifting from documentation to culture.
Client-facing businesses should take particular note
The reforms will be especially relevant to organisations whose staff interact regularly with clients and customers.
Law firms, estate agents, accountants, healthcare providers, retailers, hospitality businesses and other service organisations may face increased exposure because employees routinely engage with individuals outside the employer’s direct control.
For many businesses, the most difficult situations will involve important client relationships.
What happens if a key client repeatedly makes inappropriate remarks to a member of staff ? What if discriminatory comments are dismissed as humour? What if concerns have been raised previously but no action has been taken?
These are no longer simply employee relations issues. They may become legal risks.
Employers should be considering not only their internal policies, but also whether client engagement terms, supplier agreements and workplace standards adequately address unacceptable behaviour towards employees.
What employers should be doing now
With implementation fast approaching, organisations should be taking practical steps to prepare.
Key actions include:
Reviewing contracts, staff handbooks and workplace policies
Undertaking and documenting harassment risk assessments
Refreshing training for employees and managers
Reviewing complaint handling and investigation procedures
Ensuring reporting routes are clear and accessible
Monitoring incidents and maintaining appropriate records
Reviewing client and supplier terms where appropriate
Communicating a clear zero-tolerance approach to harassment from any source
Perhaps most importantly, employers should consider whether their culture genuinely supports employees who raise concerns, particularly where complaints involve customers, clients or other commercially important relationships.
Prevention is the new standard
These reforms are about more than legal compliance; they form part of a wider shift towards prevention, accountability and safer workplaces. Employers are increasingly expected not simply to react when harassment occurs, but to anticipate risks and take meaningful steps to address them before harm is done.
For organisations that act now, the changes present an opportunity to strengthen workplace culture and reduce risk. For those that delay, the consequences may extend well beyond an employment tribunal claim.
As the end of October approaches, employers should ask themselves a simple question: if an employee were harassed by a colleague, customer or client tomorrow, could we confidently demonstrate that we had taken all reasonable steps to prevent it?
From 30 October 2026, that is likely to be the exact question a tribunal will ask.
If your organisation needs support preparing for these changes, or you have a general employment law concern, please contact Anthony Willis at BHP Law on 0800 590 019 or email AnthonyW@bhplaw.co.uk for a confidential, no-obligation discussion
