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Why employers can’t ignore the new sexual harassment laws

Naomi Greenwood explains the key changes in the Worker Protection Act 2023 and why brands must take action now.

Naomi Greenwood

Partner Moore Barlow Solicitors

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To borrow a well-known advertising phrase, here is the science bit.
Don’t turn off, though. This is vitally important whether you are an employer or an employee.

The Worker Protection Act 2023 amends the Equality Act 2010, creating a new legal duty on employers to take reasonable steps to prevent the sexual harassment of their employees. If an employer fails to meet this duty, employment tribunals will have the power to increase compensation awards by up to 25% in discrimination claims.

Waiting until a crisis hits is not an option.

Naomi Greenwood, Partner, Moore Barlow Solicitors

As of October 10th 2024, the new Employment Rights Bill was published featuring a duty on employers to take all reasonable steps to prevent third party harassment, therefore imposing an even greater burden on employers to assess risks to staff. However, this is still subject to change and is unlikely to come into force until Autumn 2026.

The new duty requires employers to prevent sexual harassment in general, not just from specific individuals. EHRC guidance confirms this includes third parties like customers, clients, colleagues' friends and family, conference delegates, and the public.

But this isn’t just about financial penalties - it’s about brand reputation, legal exposure, and public accountability.

A wake-up call: What happens when employers fail

The recent case of McDonald's is a stark reminder of what happens when businesses fail to take workplace sexual harassment seriously.

Despite McDonald's signing a legally binding agreement with the Equality and Human Rights Commission (EHRC) in 2023, committing to protecting workers from sexual harassment, allegations have continued to emerge.

  • In the past 12 months alone, 160 allegations of abuse have been reported to the BBC, and the UK equality watchdog has received 300 complaints.-
  • 29 employees have been dismissed for sexual harassment.
  • The McDonald's UK CEO was called before MPs to answer tough questions, with one committee member describing the situation as a "predator’s paradise."

The public scrutiny has been relentless, proving that workplace harassment is not just a legal issue—it’s a reputational and operational crisis.

Why this law change matters

Cases like McDonald's make it clear: waiting until a crisis hits is not an option.

With the Worker Protection Act 2023, businesses will no longer be able to turn a blind eye or respond reactively when complaints arise. Instead, they must take proactive steps to prevent harassment before it happens.

This means companies and businesses need to:

●    Conduct risk assessments to identify workplace risks and ensure compliance.

●    Ensure staff know how to report harassment, and managers understand their role in handling complaints.

●    Develop and regularly update an anti-harassment policy that clearly outlines unacceptable behavior and consequences. There is a policy template in the timeTo toolkit which you can use.

●    Review grievance and disciplinary procedures to align with the policy.

●    Encourage reporting by fostering a safe and supportive culture.

●    Provide anti-harassment training for all staff, with extra training for managers.

●    Investigate complaints thoroughly and take prompt action.

●    Address third-party harassment by setting clear expectations for external individuals.

●    Monitor and evaluate measures, ensuring complaints are handled properly, repeat offenders are dealt with, and workplace culture improves

The new law also extends employer responsibilities to third-party harassment, meaning businesses will need to assess risks from customers, clients, and other external individuals.

The cost of inaction

For employers, failing to comply with the new duty won’t just mean higher compensation claims—it could mean:

  • Expensive litigation and settlements.
  • Severe reputational damage.
  • Loss of talent and difficulty in recruitment.
  • Public scrutiny from government bodies, regulators, and the media.
  • Changed enforcement

Where an employer fails to prevent sexual harassment, the EHRC can take enforcement action against the employer. It has the power to:

  • Issue an unlawful act notice the employer to prepare an action plan setting out how it will remedy any continuing breach and prevent future breaches
  • Enter into a binding agreement with an employer to prevent future unlawful acts
  • Seek a court injunction to restrain an employer from committing an unlawful act

McDonald's has shown us what happens when companies don’t act decisively—even after making public commitments to do better.

The takeaway is clear: businesses and employers must act now, they shouldn't be protecting their staff just because it's the law; they should do it because it's the right thing to do; the difference is that it will now be harder to escape their responsibility.

About

Naomi Greenwood is Partner at Moore Barlow Solicitors