Employment news

All reasonable steps: How employers can stay ahead of new legal obligations

Upcoming legislation will expand employer responsibilities for preventing workplace harassment. The Employment Rights Bill, expected to take effect before the end of 2025, will require employers to take “all reasonable steps” to prevent and address sexual harassment and will reintroduce liability for harassment by third parties across all protected characteristics. Previously, employer liability for third-party harassment was limited, but the new provisions are set to remove thresholds such as repeated incidents or prior employer knowledge.

This shift represents a significant increase in both scope and expectations. Employers must now take proactive measures that leave no reasonable step unconsidered. Sectors with frequent client or customer interactions, such as retail and hospitality, may face particular challenges, as balancing third-party rights with employee protections could introduce legal and operational complexities. Addressing third-party harassment effectively will require clear policies, staff training, communication strategies and a structured process for responding promptly to reports while respecting legal boundaries.

Businesses can prepare by embedding preventative measures into their culture and systems now. Recommended actions include conducting risk assessments, incorporating anti-harassment clauses in third-party agreements, providing targeted training and establishing clear reporting channels. Encouraging reporting, supporting affected employees, and visibly reinforcing behavioural expectations will help mitigate risk and demonstrate readiness for the new legal obligations.