Changes to employer liability and compensation for sexual harassment

Proposed amendments to the Equality Act 2010 have been progressing through Parliament. Under the Worker Protection (Amendment of Equality Act 2010) Bill, the following changes are anticipated:

1. A slightly varied defence for employers is expected to be introduced. Currently, employers will not be liable for any discriminatory actions of their employees under the Equality Act 2010 if they have taken all reasonable steps to prevent the discriminatory action. Under the bill, for sexual harassment only, reasonable steps must be taken if an employer is to avoid liability for the actions of an employee. All reasonable steps do not need to have been taken.

2. Combined with this change, employers who have not taken reasonable steps to prevent sexual harassment could be penalised by an increase in compensation of up to 25%.

Under the amendments proposed in the bill, the defence for employers for sexual harassment by employees is a lower hurdle, but the risk of penalty is greater. These two changes combined mean that it will continue to be important for employers to implement effective training (including refresher training) about acceptable behaviours in the workplace and implement and review appropriate policies, as well as effectively enforce them.

The bill had originally been proposed to reintroduce employer liability for third-party harassment of employees. This is not, however, proceeding. This is not to say that steps should not be taken by employers who owe a duty of care to all their staff.

We anticipate that Parliament will approve the changes and that they will soon receive royal assent. It is then anticipated that the provisions will be implemented within one year to allow organisations to prepare.

If you would like to find out more about these changes, their implications, and/or how the employment and BLHR team might support you with appropriate training within your organisation, please do get in touch with any member of the team. We offer a fixed fee BLHR service.