On 26 October 2026, the Worker Protection (Amendment of Equality Act 2010) Act 2023 (WPA) will come into effect, alongside updated guidance from the Equality and Human Rights Commission. Under the WPA, employers will face new proactive duties to prevent sexual harassment in the workplace. This significant shift means that it’s no longer enough to react to incidents after they occur; employers must now take reasonable steps to prevent them from happening in the first place.
Failure to comply with these strengthened protections could result in substantial financial penalties, including a potential 25% uplift on any employment tribunal awards ‒ a risk that no business can afford to ignore. Given the uncapped damages associated with discrimination claims, the stakes have never been higher.
This update will break down what these legal changes mean for your business and provide practical guidance on how to remain compliant. By understanding and acting on these new obligations now, you can create a safer work environment and protect your organization from significant legal and financial repercussions.
As all employers will know, sexual harassment is prohibited under the Equality Act 2010 and is defined as unwanted conduct of a sexual nature that has the purpose or effect of either violating the dignity of or creating an intimidating, hostile, degrading, humiliating or offensive environment for another. Currently, employers can be held vicariously liable for sexual harassment by their employees, unless they can show they took “all reasonable steps” to prevent that sexual harassment or anything similar – although this rarely succeeds, as it is difficult to show that these steps have been taken.
On 26 October, the WPA will implement an additional proactive, rather than reactive, duty to prevent sexual harassment in the workplace. While this reactive duty will remain, an employer must now also show that they have taken “reasonable steps to prevent sexual harassment of employees … in the course of their employment.” While this may seem similar to the reactive defence above, updated technical guidance from the Equality and Human Rights Committee (EHRC) has confirmed that these both exist in parallel. The key difference is that instead of defending on the specific instance of harassment, employers will additionally have to show that they have taken reasonable steps to prevent workplace sexual harassment in general, including from third parties such as customers, clients or contractors. Both duties will work in tandem, which means it would be possible to meet one standard, but fail to meet the other – although how has not been clarified by the EHRC.
A failure to comply with this proactive duty can lead to harsh financial and reputational penalties, including a 25% uplift in any award given by an employment tribunal and a further investigation by the EHRC. As awards of as high as £1 million have been given by the employment tribunal, a 25% uplift can have a significant impact on employers, especially if the failure is systemic and an employer receives multiple claims.
The legislation does not define what “reasonable steps” are and leaves it to be judged on a case-by-case basis. Helpfully, the EHRC has updated their Technical Guidance on Preventing Sexual Harassment at Work and produced an eight-step guide on how an employer can ensure that they are fulfilling their duty. The EHRC advises that what constitutes reasonable steps will vary based on factors such as the employer’s size and resources, the nature of the working environment, the sector they operate in and specific risks present in the workplace. Employers are expected to proactively assess the risks of sexual harassment occurring, consider measures to mitigate these risks, decide which steps are reasonable to implement, and then put those measures into action. This involves conducting thorough risk assessments and implementing policies, training and reporting mechanisms tailored to their specific circumstances. Importantly, allemployers areobligated to take action regardless of their size or industry. While this is not legally binding, employers should ensure they take it into account as best guidance given the risk of the increased financial penalties.
It’s crucial to understand that the requirement to take reasonable steps is an objective standard that depends on the unique circumstances of each business. This means what is reasonable for one employer may differ for another.
The EHRC has acknowledged that there is no one-size-fits-all checklist; instead, each employer must conduct a thorough risk assessment and develop strategies that effectively prevent sexual harassment within their own setting.
This individualized approach will help to ensure that employers are held to a fair standard while being required to take meaningful action to safeguard their employees.
The EHRC’s eight-step guide recommends that employers commit to take the following actions:
- Develop an anti-harassment policy
Employers should either have a single policy covering all forms of harassment or separate ones for different types. The policy should clearly outline who is protected and make it explicit that sexual harassment is unlawful and will not be tolerated. - Engage with staff
Regular engagement, such as one-to-one meetings, surveys and exit interviews, to understand and identify any issues. - Conduct risk assessments
Risk assessments will help employers comply with the preventative duty and should identify factors that increase the likelihood of harassment, such as power imbalances, lack of diversity, night shifts or alcohol consumption at work events. - Encourage reporting
Implement a system for reporting harassment, which can also allow anonymous submissions. Educate workers on acceptable behaviour, how to identify harassment and what to do if they experience or witness it. Keep confidential records to track patterns and respond effectively. - Provide training
Provide training to all staff, including managers, on recognizing and addressing harassment. Refresher sessions should be scheduled regularly. In high-risk sectors, train employees on handling third-party harassment. Review the effectiveness of the training provided. - Handle complaints effectively
When harassment complaints are made, take immediate action, respect confidentiality and protect the complainant from further harassment or being victimised. If the case may involve criminal conduct, assist the complainant in reporting to authorities if they choose. Use nondisclosure agreements only when appropriate, and always communicate the outcome to the complainant promptly. - Address third-party harassment
Treat harassment by third parties (customers, clients, etc.) as seriously as internal issues. Prevent this type of harassment by developing codes of conduct for interactions with third parties, establishing clear reporting mechanisms and assessing any high-risk environments. - Monitor and evaluate
Regularly review policies, training and complaint data to ensure effectiveness. Anonymous surveys and lessons-learned sessions after complaints can help improve systems. Involve employees in the process to ensure workplace safety and compliance with the preventative duty.
As expected, the Labour government have committed to their election manifesto pledge to strengthen employee rights in the new Employment Bill, as originally outlined in their Plan to Make Work Pay. A key part of this bill is the intention to strengthen this proactive duty to require employers to take all reasonable steps and to prevent third-party harassment, in line with the original proposal. If this language is included in the final bill, employers will have to take even greater steps to prevent workplace sexual harassment.
It is essential for employers to proactively revise their harassment policies now ‒ before any allegations of sexual harassment surface.
This proactive approach should include regular staff training on recognizing and preventing sexual harassment in the workplace, as well as implementing robust reporting mechanisms that provide employees with a safe and clear way to raise concerns. Crucially, employers should conduct regular risk assessments tailored to their organization’s size and industry. Additionally, employers should now also review their use of settlement agreements and NDAs to ensure they align with the new legal landscape.
These measures not only demonstrate that employers have taken reasonable steps to prevent harassment but also help identify potential hazards before they escalate, creating a safer and more comfortable environment for all staff. Taking reasonable steps now means your business is far less likely to take a legal tumble later.