Harassment law reform: What employers need to know before 1 October 2026

The Employment Rights Act 2025 (ERA) will raise the current duty to prevent harassment from taking “reasonable steps” to taking “all reasonable steps” and will introduce a new standalone liability for employers where their workers are harassed by third parties, such as customers, clients or contractors.

For employers, this means a materially higher compliance bar, a new category of tribunal claim, and far less room to rely on the reactive, complaint-led approach to harassment that many workplaces still operate today.

Although the changes do not come into force until October 2026, the practical impact is already being felt. Employers who have not revisited their risk assessments and policies since the introduction of the original preventative duty in October 2024 are likely to fall short of the higher standard from day one, and many boards are already asking HR and legal teams to demonstrate what has been done to prepare.

Where are we now?

Since 26 October 2024, employers have been required to take “reasonable steps” to prevent sexual harassment of their workers, including harassment by third parties. This is a preventative duty: only the Equality and Human Rights Commission (EHRC) can take enforcement action for a breach, although a failure to comply can also lead to a compensation uplift of up to 25% in a successful harassment claim.

Separately, since 2013, an employer has generally only been liable for harassment of a worker by a third party (such as a customer or client) in the narrow circumstances where the reason for the employer’s failure to protect the worker was itself related to a protected characteristic. In practice, this has been very difficult for workers to prove, and few claims of this kind have succeeded.

What is changing?

The major change is twofold.

First, the existing duty to prevent sexual harassment is being strengthened. From 1 October 2026, employers must take “all reasonable steps” to prevent sexual harassment of their workers, rather than merely “reasonable steps”. This brings the preventative duty into line with the higher standard already used in the statutory defence against vicarious liability for harassment or discrimination committed by employees. In practice, this means employers will need to show proactive, documented risk assessment and planning, rather than pointing to a general policy or a single round of training.

Second, and more significantly, the ERA reintroduces standalone liability for third-party harassment. From 1 October 2026, an employer will be liable where a worker is harassed by a third party in the course of their employment, unless the employer can show it took all reasonable steps to prevent it. A “third party” means anyone who is not the employer or one of its workers, such as a customer, client, patient, contractor or member of the public. Unlike the general preventative duty, this will give rise to a standalone tribunal claim that an individual worker can bring directly, in the same way as any other harassment claim.

Importantly, the protection from third-party harassment is not limited to sexual harassment. It covers harassment related to any protected characteristic under the Equality Act 2010, including age, disability, gender reassignment, race, religion or belief, sex and sexual orientation. This means the changes will be felt well beyond sectors traditionally associated with sexual harassment risk and will extend to any workplace where staff have contact with the public, clients or contractors.

What “all reasonable steps” means in practice is not yet defined in legislation. The government has indicated that it expects this to include conducting risk assessments, publishing clear and accessible policies, and maintaining robust reporting and complaints procedures, with the EHRC’s existing technical guidance and eight-step guide likely to remain the key reference points. Formal regulations are expected to follow a public consultation in 2027, meaning employers will need to comply with the higher duty well before further detailed guidance is available.

These changes sit alongside related reforms already in force. Since April 2026, any disclosure relating to sexual harassment can amount to a protected disclosure for whistleblowing purposes, giving workers who raise concerns stronger protection from detriment or dismissal. The government has also indicated that, from 2027, employers are expected to lose the ability to rely on non-disclosure agreements to prevent workers disclosing harassment or discrimination complaints, subject to limited exceptions.

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What should employers do now?

Employers should review their approach to harassment risk across the whole organisation, not just within HR policy documents. The following are some suggested actions:

Refresh risk assessments

Existing sexual harassment risk assessments should be reviewed and extended to cover harassment by third parties and harassment related to all protected characteristics, not only sex. Particular attention should be paid to roles involving lone working, night working, or regular contact with customers, clients, patients or the public.

Update policies and reporting channels

Anti-harassment, bullying and whistleblowing policies should be revised to reflect the “all reasonable steps” standard, the new third-party liability, and the whistleblowing changes already in force. Reporting channels should be clear, consistent and accessible to workers who may be reluctant to come forward.

Train managers, not just staff

Managers are typically the first point of contact when a worker raises a concern, so they need to be equipped to identify issues early, respond promptly and sensitively, and know when a formal process is required. Training should be documented, and records of attendance and content retained as evidence of compliance. It should also be refreshed periodically.

Keep an auditable trail

Given the likelihood of tribunal scrutiny, employers should maintain clear records of risk assessments, actions taken in response to concerns raised, and periodic reviews of how effective those measures have been in practice.

Next steps

These reforms represent one of the most significant shifts in harassment law in over a decade, and will increase both the likelihood and the value of harassment claims for employers who are not prepared. Employers who wait until October 2026 to act may find they are already exposed. Although the guidance from the government will not be published until 2027, employers will be required to assess themselves the measures which would constitute “all reasonable steps” prior to this and it will be business specific. A generic risk assessment that is not tailored to the specific business is unlikely to meet the new requirements.

Now is the time to review risk assessments, policies, reporting procedures and manager training. Taking those steps before the new regime comes into force will help reduce risk, support a preventative culture, and put businesses in a stronger position if a claim does arise.

Ward hadaway has prepared a Harassment Toolkit to assist employers to prepare for the upcoming changes. This includes a risk assessment with the key areas for completion by employers, internal emails to send to staff, a business checklist and a slide deck of training for managers. For further information, please fill out the form below.

Ward Hadaway will also be delivering a seminar on the 8 September 2026 which covers more detail on the upcoming changes and practical guidance for organisations to help them comply with their legal obligations. To register for the seminar click here.

If you would like support preparing for these changes, our employment team can help you identify the key risk areas and put practical protections in place. Our HR Protect service provides clients with unlimited day to day HR and Employment Law Advice, delivered by award winning and experienced specialist solicitors, for a fixed monthly fee.

Find out more here.

Register for the Harassment Toolkit