Soundbite: Third-party harassment: is your organisation prepared?

Third-party harassment: is your organisation prepared?

As we have reported previously, further provisions of the Employment Rights Act 2025 are expected to come into force in October 2026, reintroducing employer liability for harassment of employees by third parties, including customers, clients, contractors, patients, service users and members of the public.

Under the amended Equality Act 2010, an employer may be liable where a third party harasses an employee in the course of their employment and the employer failed to take all reasonable steps to prevent it. Unlike the former “three strikes” rule, liability will not depend on an employee having been harassed by a third party on two previous occasions. A single incident may therefore be sufficient.

The changes will be particularly significant for employers in hospitality, retail, healthcare, transport and other sectors where employees routinely interact with the public or third parties. Simply having an anti-harassment policy will not be enough. Employers must assess where and how third-party harassment could arise and pro-actively put effective, documented preventative measures in place. Measures could include regularly assessing risks for third-party harassment and taking action to avoid or reduce those risks, monitoring and recording incidents and actions taken, having a policy that sets out how to deal with third party harassment, for example a bullying and harassment policy, training workers and telling customers the consequences of harassing workers, for example in their terms and conditions.

Non-compliance may result in grievances, employment tribunal claims, compensation awards, management time and legal costs, as well as serious reputational and employee-relations consequences. Where claims are issued, employers will need evidence that they took all reasonable steps if they are to rely on the statutory defence.

We can assist employers to prepare by:

• conducting tailored risk assessments covering sexual and other third-party harassment;
• reviewing and updating anti-harassment policies and reporting procedures; and
• delivering practical in-house training for employees, managers and HR teams.

Employers should act now to identify areas of exposure and ensure that their policies, procedures and training are fit for purpose before the new provisions take effect on 30 October 2026.

If you wish to discuss the implications of third-party harassment within your organisation, training needs or you require assistance amending your workplace policies, please get in touch with a member of the team and we’d be happy to assist.