Navigating the New Sexual Harassment Protection Directive

As of October 2024, UK businesses will face new obligations under the Worker Protection Act 2023, aimed at significantly enhancing protections against sexual harassment in the workplace. This directive, an amendment to the Equality Act 2010, mandates employers to take proactive and reasonable steps to prevent sexual harassment. Failure to comply with these requirements not only increases the risk of legal action but can also severely damage a company’s reputation and financial standing.

Key Requirements Under the New Directive

The most significant change introduced by the Worker Protection Act is the shift from reactive to proactive responsibility. Previously, employers were primarily required to respond to incidents of harassment after they occurred. Now, they must actively work to prevent such incidents from happening in the first place.

The law specifies that employers must take "reasonable steps" to prevent sexual harassment. Although what constitutes reasonable steps is not exhaustively defined, it generally involves:

1. Comprehensive Risk Assessments: Employers must assess their workplace environment to identify potential risks for harassment. This includes evaluating the company's culture, employee demographics, and specific work settings, such as client-facing roles or remote working conditions.

2. Policy Overhaul: Businesses must ensure that their anti-harassment policies are robust, well-communicated, and embedded into the company culture. Regular reviews and updates to these policies are essential, alongside accessible reporting mechanisms for employees.

3. Training and Awareness: Employers are required to provide regular training to all staff, including management, on how to identify, prevent, and respond to sexual harassment. Tailoring this training to specific roles and contexts within the company is also advised.

4. Third-Party Harassment Considerations: While the Act does not explicitly reintroduce liability for third-party harassment (e.g., by customers or clients), businesses should still take steps to protect employees from such risks. The Equality and Human Rights Commission (EHRC) may consider a company’s overall efforts to prevent harassment, including from third parties, when investigating claims.

Consequences of Non-Compliance

Failing to adhere to these new requirements can lead to severe repercussions. One of the most immediate risks is the potential for increased compensation awards. Employment tribunals now have the power to increase compensation by up to 25% if an employer is found to have breached their duty to take reasonable steps to prevent harassment.

Additionally, the EHRC has the authority to enforce compliance through investigations, legally binding agreements, or assistance in legal proceedings against the employer. This not only poses financial risks but can also lead to significant reputational damage.

The case of Allan v. Menzies Distribution Ltd (2019) serves as a stark reminder of the consequences of failing to prevent harassment. Although this case predates the new directive, it highlights the courts' increasing willingness to hold employers accountable for failing to create a safe working environment.

Preparing Your Business

To comply with the new directive, businesses should begin by conducting an independent assessment of their current risk profile and ensuring that their anti-harassment policies are not only up-to-date but also effectively implemented. Regular training sessions, a transparent reporting process, and clear communication of zero-tolerance policies are all critical components of compliance.

By taking these steps, businesses not only mitigate legal risks but also foster a safer, more inclusive workplace environment—benefiting both employees and the organisation as a whole.

The new directive demands a proactive stance from UK businesses. Those who delay may find themselves facing significant legal and financial consequences. It’s time to act, not just to comply with the law, but to ensure a respectful and safe workplace for all.