Requirement to take "all" reasonable steps to prevent sexual harassment
The requirement on employers to take reasonable steps to prevent sexual harassment will be amended to require employers to take "all" reasonable steps.
Implementation Status
Regulations will be made specifying steps and matters to consider for the purposes of taking "reasonable steps".
ERA: Expected in force October 2026.
- Action
A new duty to take reasonable steps to prevent sexual harassment came into force in October 2024. In light of this proposed "enhanced" right, employers should consider carefully their steps towards compliance which should put them in a good place when this extended obligation comes into force. This approach will need to be adapted in light of the regulations, which may include a requirement for large employers to publish action plans (see below).
The EHRC has recommended in the context of the current legal preventative duty that employers undertake a risk assessment. While there are no set criteria around this, the EHRC has suggested that the framework of a health and safety assessment may be appropriate.
- Where any measures are considered appropriate in light of third-party risks, such as surveillance and/or other electronic monitoring (such as recording phone calls), ensure that these are conducted in accordance with existing legal and regulatory requirements.
Employers will also need to revisit policies on harassment and sexual harassment and ensure that managers and staff receive updated and refreshed training and that this is then rolled out on a regular basis.
- Keep on top of EHRC guidance, changes to the EHRC Employment Code (which are anticipated) and any guidance from regulators, together with evolving case law in this area. The EHRC released last year a number of documents to support employers in respect of the new duty which came into force in October 2024 including updated technical guidance on sexual harassment and harassment at work, an eight-step guide to preventing sexual harassment in the workplace and a checklist, action plan and monitoring logs (originally designed for the hospitality sector but which the EHRC suggests can be adapted to suit other workplaces).
- In detail
The legal requirement for employer to take reasonable steps to prevent sexual harassment will be amended to require employers to take "all" reasonable steps.
Regulations will be made to specify the steps which an employer must take and the matters to which they must have regard for the purpose of meeting the obligation to take all reasonable steps to prevent sexual harassment – see below.
- Impact
Since October 2024, employers have been under a statutory duty to take reasonable steps to prevent sexual harassment in the workplace. A proposal to make this current duty one of "all" reasonable steps was previously proposed but subsequently dropped.
Liability for third party harassment
Employers will be liable for third party harassment in relation to all applicable protected characteristics (including age, disability, religion or belief, sex and sexual orientation) unless they have taken "all" reasonable steps to prevent that harassment.
Implementation Status
Regulations will be made specifying steps and matters to have regard to for the purposes of taking "reasonable steps".
ERA: Expected in force October 2026.
- Action
This is significant. While many employers have been focusing on what reasonable steps are required to prevent a third party committing sexual harassment in the workplace in light of the new preventative duty (in force October 2024), this proposal would cover third party liability for harassment across all applicable protected characteristics.
Employees would be able to bring claims in the Employment Tribunal for breach of this new provision, in the same way as they can currently bring a claim for alleged harassment by a colleague. Where the allegation of third-party harassment relates to sexual harassment, employers may also face an uplift of 25% to any compensation award where the tribunal also considers that there has been a breach of the preventative duty.
To minimise risks, a formal risk assessment may be appropriate for assessing the wider risks of harassment (including third party harassment) across other protected characteristics. For sexual harassment, it will be important for employers to consider the regulations when they are produced on "reasonable steps".
Where measures such as surveillance and/or other electronic monitoring (such as recording phone calls) are identified to mitigate third party risks, ensure that these are conducted in accordance with existing legal and regulatory requirements.
Policies on harassment and sexual harassment will need to be revisited; ensure that managers and staff receive updated and refreshed training and that this is rolled out on a regular basis.
Keep on top of EHRC guidance, changes to the EHRC Employment Code (which are anticipated) and any guidance from regulators, together with evolving case law in this area.
- In detail
The proposed new test for liability for third party harassment mirrors the existing tests for harassment by an employer or work colleague and covers sexual harassment and the protected characteristics of age, disability, gender reassignment, race, religion or belief, sex or sexual orientation.
ERA provides that an employer will have permitted a third party to harass one of its employees where the third party harasses the employee in the course of their employment; and the employer failed to take all reasonable steps to prevent the third party harassing the employee in the course of employment. A third party means a person other than the employer or one of its employees.
- Regulations will be made to specify the steps which an employer must take and the matters to which they must have regard for the purpose of meeting the obligation to take all reasonable steps to prevent a third party sexually harassing an employee. However, they are likely to be relevant when considering reasonable steps relating to other protected characteristics.
- Impact
Statutory provisions providing employer liability for third party harassment under the Equality Act 2010 were repealed in 2013 (the test was different to the one proposed).
We may see more Employment Tribunal claims. Employers should also be aware that for sexual harassment allegations, a successful claim could lead to an uplift of up to 25% in any compensation award where a tribunal also considers that there has been a breach of the preventative duty.
Employers will need to consider carefully the contact their staff have with third parties – whether it be in the course of their day to day duties or at work events(such as parties, conferences etc.) – and the precautions (for example, notices, policies, contractual terms etc.) needed to prevent the risk of any harassment taking place. It is recognised that the impact is likely to be felt most significantly in sectors which are largely public facing, such as retail, hospitality and transport.
Regulations on reasonable steps to prevent sexual harassment
A power will be introduced enabling regulations to be made specifying what are to be regarded as reasonable steps an employer should take (or has failed to take) to comply with its duties in respect of reasonable steps to prevent sexual harassment and its liability for acts of sexual harassment under the Equality Act 2010.
Implementation Status
- Regulations will be made specifying steps and matters to have regard to for the purposes of taking "reasonable steps". The impact assessment indicates that a reasonable step may be a requirement for employers with at least 250 employees to produce action plans and to report on them via the gender pay gap reporting service (with reporting on those employers who have not produced a plan).
- Although it has not been confirmed, it is likely that there will be a consultation on the detail of the regulations.
- ERA: The power to enable regulations to specify steps that are to be regarded as "reasonable" in respect of the duty to prevent sexual harassment is expected to come into force in October 2026.
- Action
Follow the outcome of a consultation and regulations on reasonable steps in the context of sexual harassment risks closely. Meanwhile, it will be important to follow the recommendations set out in the current EHRC guidance on harassment and sexual harassment in the workplace.
The EHRC guidance currently recommends employers undertake a risk assessment on sexual harassment. While there are no set criteria around this, EHRC has indicated that the framework of a health and safety assessment may be appropriate.
Consider what further steps can be taken now in conjunction with staff representatives, including the suggestion that a reasonable step may be for larger employers (with at least 250 employees) to publish a sexual harassment action via the existing gender pay gap reporting service. Ensure that any measures undertaken comply with wider legislative, regulatory and data protection requirements.
- In detail
- Regulations may specify what are to be regarded as reasonable steps an employer should take or has failed to take to comply with:
- its duties to take all reasonable steps to prevent sexual harassment under the Equality Act (which will include the new proposed third-party harassment provisions) and its use of the all reasonable steps defence to defend a sexual harassment claim; and
- to comply with its duty to take all reasonable steps to prevent sexual harassment under s40A Equality Act.
- Steps which may be specified in regulations include but are not limited to:
- Carrying out assessments of a specified description.
- Publishing plans or policies of a specified description.
- Steps relating to the reporting of sexual harassment; and
- Steps relating to the handling of complaints.
- Regulations may also require employers to have regard to specified matters when taking those steps.
- The government's impact assessment indicated that these regulations may include a requirement for employers with at least 250 employees to submit action plans through the existing gender pay gap reporting service digital platform and the publication of a list of organisations who do not submit a plan.
- Regulations may specify what are to be regarded as reasonable steps an employer should take or has failed to take to comply with:
- Impact
While the proposed regulations are limited to sexual harassment, employers will still need to show that they have taken all reasonable steps to prevent harassment in the workplace (by another worker or, when it comes into force, a third party) to defend an individual claim related to a protected characteristic. These steps may be helpful in guiding an employer's wider approach.
Sexual harassment allegations expressly stated to be protected disclosures
IN FORCE: 6 April 2026
Protected disclosures are now expressly extended to include allegations of sexual harassment.
- Action
Update whistleblowing policies to provide an express reference to sexual harassment as a protected disclosure.
While case law confirms that sexual harassment allegations will likely meet the statutory criteria for protected disclosures, employers will need to consider whether or not they need to make adjustments to their approach to the routes for reporting and investigating such allegations, together with their policies and procedures in line with their whistleblowing framework, as well as reflecting any specific regulatory guidance.
Manager training on handling such allegations will be key.
- In detail
- The existing statutory whistleblowing protection will be amended to provide that it will be a protected disclosure for an employee to report that sexual harassment has occurred, is occurring or is likely to occur.
- Impact
- To qualify as a protected disclosure, a worker must still satisfy both the public interest test and that the disclosure falls within the now extended categories of relevant failure (including sexual harassment). Where the disclosure qualifies, the individual will be protected from suffering a detriment or dismissal as a result of making the disclosure.
- At present sexual harassment complaints would already come within the existing legal protection where, for example, they disclose a breach of health and safety obligations or other breach of the law and meet the whistleblowing public interest requirements etc. The government is seeking to encourage businesses "to recognise sexual harassment as a serious matter and incorporating reports into whistleblowing policies and procedures… could lead to improved working conditions and workplace culture". It will also encourage workers "to report wrongdoing through whistleblowing channels and routes".
- Contractual terms will be void insofar as they purport to preclude the making of a protected disclosure. Sexual harassment disclosures will be specifically excluded from the scope of confidentiality provisions in employment documentation. Employees will also be able to seek interim relief where they make a claim to the Employment Tribunal.
- The government's impact assessment states that the options of including other forms of harassment "will be kept under review".
- To qualify as a protected disclosure, a worker must still satisfy both the public interest test and that the disclosure falls within the now extended categories of relevant failure (including sexual harassment). Where the disclosure qualifies, the individual will be protected from suffering a detriment or dismissal as a result of making the disclosure.
Discrimination and harassment: Non-disclosure agreements
The ERA makes a NDA void in so far as it prevents workers from making disclosures relating to "relevant" harassment and discrimination Restrictions will not apply to an "excepted agreement".
Implementation Status
• Consultation published (closes 8 July 2026)
- The government's updated implementation roadmap confirms its intention for the new measures to come into force in 2027.
- Action
- Employers will need to ensure that any reforms to NDAs are reflected in their use of settlement agreements and other documentation and that managers are made aware of the law on this.
- Now is a good time to remind managers in any event of the need to take care in imposing an NDA; some legal and regulatory restrictions are already in place and it is imperative that NDAs are always approached on a case by case basis in line with the applicable law and regulatory requirements rather than a one size fits all.
- The proposed reforms highlight the need for employers now, more than ever, to look at their internal culture and processes and how complaints and allegations of harassment and discrimination are dealt with.
- In detail
- A provision in an agreement between an employer and a worker will be void to the extent that it prevents a worker from making either an allegation of or a disclosure of information relating to:
- Relevant harassment or discrimination; or
- The employer's response to relevant harassment or discrimination or the employer's response to the making of an allegation of such harassment or discrimination.
- The new rules are not limited to settlement agreements; they will also capture employment contracts and other relevant agreements. The consultation is also considering how the new framework will apply to COT3 agreements, which are subject to separate statutory rules.
- The government recognises that the use of NDAs may sometimes be appropriate; for example where a worker wants to maintain confidentiality as part of a settlement agreement to bring closure to an unpleasant or distressing experience. The new measure will therefore not void NDAs in agreements that meet specific conditions for an "excepted agreement", to be outlined in regulations following the outcome of the consultation.
- Conditions proposed in the consultation include that the worker must have received independent written advice before entering into the agreement and has expressed in writing their preference to then enter into the agreement. A copy of the written agreement must be provided to all parties and include an explicit right for the worker to withdraw (either from the entire agreement or the relevant confidentiality period) without penalty within a specified period of the agreement being entered into. The consultation also invites views on whether confidentiality obligations in an excepted agreement should be time-limited.
- The consultation also proposes that an excepted agreement will only be possible where the incident of relevant harassment or discrimination has (or is alleged to have) already taken place. Pre-dispute NDAs used in employment contracts to prevent workers from speaking out about future potential incidents would be made unenforceable.
- Even where an agreement meets the conditions for an excepted agreement, workers will still be able to disclose to identified people or organisations including: law enforcement bodies (e.g. the police, the Health and Safety Executive and the FCA); qualified lawyers; regulated professionals (such as doctors, social workers and tax advisers); victim support services (e.g. counsellors independent sexual violence advisors); regulatory bodies (such as the SRA and the Equality and Human Rights Commission); trade union representatives; and close family members, for the purposes of obtaining support.
- The consultation also raises the question of whether workers should be able to disclose to prospective employers where an NDA limits their ability to explain gaps in their employment history.
- A provision in an agreement between an employer and a worker will be void to the extent that it prevents a worker from making either an allegation of or a disclosure of information relating to:
- Impact
- One of the reasons why employers may enter into a settlement agreement with an individual is to draw a line under the allegations and address, through compensation and other agreed measures, issues where the employer's approach could be the subject of scrutiny were the matter to proceed before an Employment Tribunal or otherwise enter the public domain. The amendments are intended to allow workers who have experienced harassment or discrimination, and those who have witnessed or have knowledge of it, to speak up. The reference to the "response of an employer" is designed to capture circumstances such as a failure to investigate, a poor performance review or resulting poor conduct aimed at the worker.
- The government's current proposals may create difficulties for employers when seeking to settle claims close to or during any scheduled tribunal hearing, given that a mandatory cooling off period would mean an excepted agreement could be withdrawn within 14 days of being entered into, potentially creating uncertainty as to whether a hearing will proceed.
- Under the current proposals, employers would also need to consider carefully whether they are permitted to suggest confidentiality to a worker. The consultation is actively seeking views on this question. One approach would be to prevent employers from suggesting confidentiality at all – but this may have unintended consequences if, for example, an employer merely mentioning an NDA in an initial conversation were treated as "suggesting" one, thereby precluding the option of an excepted agreement.
- A further issue is the potential introduction of time limits on confidentiality obligations. If finalised this would represent a significant shift from current practice where NDAs typically have no end date. Employers will want to monitor the outcome of the consultation closely.