Our recent Employment Rights Act roadshows brought together a fantastic audience of HR professionals, business leaders and people managers, prompting valuable discussion on the practical implications of the forthcoming reforms. Employment partner James Kidd chaired the Norwich event and, in this article, considers the key themes that emerged in relation to the upcoming third-party harassment reforms.
What is changing?
The Employment Rights Act 2025 is expected to reintroduce employer liability for third-party harassment from 30 October 2026. Employers could be liable where a worker is harassed by a third party in relation to a relevant protected characteristic and the employer has not taken all reasonable steps to prevent it, even if it is the first incident. “Third party” would be construed broadly and include anyone with whom staff interact in the course of employment.
This reform generated significant discussion at our Norwich ERA roadshow. While delegates were generally comfortable with preventing and managing harassment between colleagues, many were less accustomed to handling risks arising from third party interactions.
What steps can an employer take to prevent harassment?
The Government’s intention is to shift employer focus towards proactive prevention of harassment. A common theme from our roadshow was the need to move beyond policies and standard EDI training to consider practical preventative measures. Delegates discussed strengthening visitor management processes, providing harassment training for contractors, ensuring supplier arrangements clearly set out behavioural expectations and implementing chaperone or buddy systems for higher-risk interactions.
There was particular interest in managing risks in environments where employers have less control over third parties, including public-facing organisations, educational institutions and care providers. Real concerns were expressed about how these changes will work in an education setting, with teachers potentially exposed to harassment. Measures such as warning notices and the right to refuse services may be effective in some settings, although the right approach will vary depending on the nature of the risk. We all agreed that handling this change will not be easy for employers.
Culture also emerged as a key theme. Delegates highlighted the importance of leaders setting the tone, embedding zero tolerance values in practice and creating an environment where employees feel confident raising concerns.
In June, the Equality and Human Rights Commission published its research into harassment in the workplace. Although not focused on third party harassment, it helpfully includes guidance on steps which may help tackle workplace harassment. While there is no “one size fits all”, many of the suggestions mirror those discussed at our roadshow. Some go slightly further. Additional suggestions include:
- Permitting anonymous reporting of harassment via an external party or digital platform.
- Targeting training at the underlying causes of harassment and providing bystander training to help managers notice harassment and speak up, potentially providing guidance on steps to take if third party harassment is observed.
- Re-onboarding leaders to reinforce good behaviour and embedding equality ambitions into performance management targets or KPIs.
Perhaps the most challenging issue for employers is balancing employee protection with sensitive external relationships. Employers may need to address inappropriate behaviour by valued clients, parents, service users or members of the public, even where commercial considerations are at stake. Nevertheless, organisations will increasingly need to demonstrate that they have taken proactive and reasonable steps to prevent harassment, regardless of who the perpetrator is.
Employers should therefore identify the third-party relationships and settings that present the greatest risks across their organisation, implement reasonable, meaningful steps to prevent harassment and agree in advance how managers should respond where concerns arise.
How far will liability extend?
During the legislation’s parliamentary passage, concerns were expressed that employers could be liable for third party harassment due to offensive conversations merely overheard by workers. The Government declined to introduce a specific exemption, noting that Tribunals already balance competing rights, including freedom of expression, and that employers are not expected to prevent every instance of harassment.
The Government has indicated that the steps employers can reasonably take in relation to third parties will often be more limited than those available when dealing with employees. How Employment Tribunals interpret this remains to be seen.
However, employers should not wait for a Tribunal claim to test that boundary. Employers who identify third party harassment risk, put in place appropriate and meaningful safeguards to prevent third party harassment and regularly review the effectiveness of those measures will be in a stronger position to protect their employees and defend any future third party harassment claims.
It is fair to say that this reform has not had the attention that the main changes under the ERA have received, but the one strike rule here makes managing liability for harassment claims from third parties very challenging.
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