Employers must be aware of new legislation coming into force next month under the Worker Protection Act 2023. The new law means business owners and directors will need to take ‘reasonable steps’ to protect employees from sexual harassment at work.

The new legislation takes effect from 26 October, 2024 and creates a duty for all employers to prevent harassment. While no employer encourages such behaviour, sexual harassment in the workplace often goes unreported as many businesses do not actively prevent it.

When the Bill was given Royal Assent last year, the Equality and Human Rights Commission welcomed the legislation. In a statement, it said that “evidence shows that workplace sexual harassment remains widespread, often goes unreported, and is inadequately addressed by employers”. 

Indeed, a recent report highlights that dozens of sexual harassment allegations have recently been made within UK law firms.

What does the Worker Protection Act mean?

Employers, regardless of their size or sector, will have a legal duty from 26 October to work preventatively to address sexual harassment in the workplace. This means being proactive and not simply reacting to complaints. 

Business owners will need to show evidence that they have taken ‘reasonable steps’ to prevent workplace sexual harassment. Failure to do so could be costly.

What ‘reasonable steps’ can I take?

The law hasn’t outlined what it deems to be ‘reasonable steps’. The EHRC expects to offer guidance in the weeks leading up the new legislation coming into force.

But employers should not ignore the new law and take steps now to ensure the prevention of sexual harassment at work. This can include: 

• Mandatory training for all staff about sexual harassment.
• Enforcing a zero tolerance culture in relation to sexual harassment.
• Having a clear policy that tackles sexual harassment.
• Conducting a risk assessment to identify any potential risk areas. 
• Introducing or enforcing a clear reporting path for any complaints.
• Bringing in measures to help minimise the risk of sexual harassment by third parties.

What if employers don’t comply?

Failing to comply with the new legislation is likely to be costly if complaints are made. Employment Tribunals will have the power to increase any compensation awarded by up to 25% if an employee’s sexual harassment claim is upheld. The compensation can cover various areas of loss including injury to feelings, financial loss, aggravated damages and personal injury.

The one area that will make employers sit up as that there will be no statutory cap on the amount that can be awarded as a result of sexual harassment claims. It means the awards could be very substantial in severe cases. For example, where claimants prove significant financial loss or severe injury to feelings.

Employers will need to ensure they never brush complaints under the carpet. That’s because failing to investigate a complaint properly may constitute a breach of the implied duty of trust and confidence. This means the employee is entitled to resign and claim constructive dismissal. 

And if employers cannot demonstrate that they took reasonable steps to prevent sexual harassment, they could be vicariously liable for the harassing actions of their employees.

Labour plans tougher laws

The new legislation will come into force as planned under the new Labour government. In fact, they plan to make the law more stringent by doubling down so that employers will need to take ‘all reasonable steps’ to prevent sexual harassment in the workplace. What that means, exactly, will become clearer over time, although some lawyers say there will be little difference between the two.

What should I do next?

If you need help to understand what the Worker Protection Act 2023 means to you, then we can help. We can ensure your business culture encourages zero tolerance of sexual harassment in the workplace. And we will help you develop staff training and write clear policies to deal with sexual harassment. For more details, contact our team today.