New Harassment Duties for Employers: What Changes from 30 October 2026
Two changes from the Employment Rights Act 2025 come into force on 30 October 2026. Employers must now take all reasonable steps to prevent sexual harassment of their employees. Employers can also be held responsible when their staff are harassed by customers, clients or other people who don't work for them. With Christmas parties only weeks away, now is a good time to check where your business stands.
What has changed
1. From "reasonable steps" to "all reasonable steps"
Since 26 October 2024, employers have had a legal duty to take reasonable steps to prevent sexual harassment of their employees. This duty is in section 40A of the Equality Act 2010. It means thinking ahead about where harassment could happen and taking action to prevent it, not just dealing with complaints after the event.
From 30 October 2026, the word "all" is added, so the duty is now to take all reasonable steps. Acas says that what is needed depends on things like the size of your organisation, your sector and the type of work your staff do. It also says the focus should be on prevention across the whole organisation, and that the duty covers sexual harassment online as well as in person.
2. Harassment by third parties
Employers can now be liable if an employee is harassed in the course of their job by a third party and the employer did not take all reasonable steps to prevent it. A third party is anyone who isn't the employer or one of its employees. Acas gives customers, clients, service users, self-employed contractors, event attendees and members of the public as examples.
This duty is not limited to sexual harassment. It covers harassment related to a protected characteristic: age, disability, gender reassignment, race, religion or belief, sex and sexual orientation. For example, racist abuse of a shop worker by a customer could now lead to a claim against the employer if the employer had not taken all reasonable steps to prevent it.
What "all reasonable steps" means in practice
The Act does not define "all reasonable steps". The government has the power to set out specific steps in regulations, such as risk assessments, policies, reporting arrangements and complaint handling. However, it says it will consult first and expects those regulations in 2027/28. Until then, employers should follow guidance from Acas and the Equality and Human Rights Commission (EHRC).
Acas describes taking all reasonable steps as "doing what is possible with the available resources". A small business is not expected to do everything a large employer would, but it is expected to think the risks through and act on them. Acas also suggests recording why you have decided a particular step is not reasonable for your business. That written reasoning could be important if your approach is ever challenged.
Why it matters
- Higher compensation. If a tribunal finds an employer liable for sexual harassment and also finds it breached the prevention duty, it can increase compensation by up to 25%.
- Enforcement. The EHRC can enforce the prevention duty using its existing enforcement powers.
- Longer time limits. Since 1 October 2026, most employment tribunal claims can be brought within six months rather than three, where the act complained of happened on or after that date. Problems can therefore come to light later than before.
- Responsibility for your staff's behaviour. Employers can already be responsible for discrimination by their own workers "in the course of employment". Acas notes this can include conduct outside the workplace, such as at a work party.
Christmas parties and work events
The EHRC has confirmed that the prevention duty applies to staff whether they are attending a work Christmas party or working at one. You don't need to cancel your celebrations, but you do need to think about the risks. The EHRC suggests employers:
- consider limits on alcohol, as it lowers inhibitions
- check that any overnight accommodation and travel are safe and appropriate
- make clear that the same standards of behaviour apply at all times, not just during the event
- think about power imbalances, such as senior and junior staff mixing
- remind staff before the event how to recognise, challenge and report harassment
- consider whether people outside your business could pose a risk, and choose the venue and activities with this in mind
A practical checklist
- Review your policy. Make sure your anti-harassment policy is up to date and covers harassment by third parties and online. Acas suggests considering a standalone sexual harassment policy.
- Assess the risks. Identify which third parties your staff deal with and where harassment could happen, for example lone working, customer-facing roles, home visits or events.
- Give staff more than one way to report. Not everyone will feel able to go to their line manager.
- Train your people. Give all staff training that suits your business, and give managers extra training on spotting and handling complaints.
- Set expectations with customers and clients. Depending on your business, this might mean notices, terms of business or telling customers what happens if they harass staff.
- Act on complaints promptly. Investigate, keep records and check whether your measures are working.
- Write down your decisions. Record what steps you have taken and why you decided against any others.
What's coming next
More Employment Rights Act changes are planned. The government plans to cut the qualifying period for unfair dismissal from two years to six months, and remove the compensation cap, from 1 January 2027. Other changes are planned for 2027, including bereavement leave in April and new rules on flexible working requests in October. The government says all future dates remain subject to parliamentary processes and may change.
How Officium can help
For a small business, the hardest part of this change is knowing what is "reasonable" for you and keeping a record of it. We can review your staff handbook and anti-harassment policy, help you put together a simple risk assessment, and update your contracts and procedures so that they reflect the new duties.
Call us on 01942 644864 or email hello@officiumbusinessservices.co.uk to talk it through.
This article is general guidance based on legislation, Acas, EHRC and GOV.UK information as at 30 October 2026. It is not legal advice for your specific circumstances.