UK employers face new third-party harassment liability

New UK employment laws taking effect on 30 October 2026 will expand employer liability to include harassment committed by third parties against staff. Under the updated Employment Rights Act, businesses will be held responsible for harassment occurring during interactions with clients, customers, contractors, and suppliers, such as at client meetings or industry events.

To comply, employers must take ‘all reasonable steps’ to prevent such incidents. Experts warn that simply having a policy or providing training may no longer be sufficient; the Equality and Human Rights Commission (EHRC) suggests that formal risk assessments will likely be necessary to meet the preventative duty.

Data indicates a significant rise in discrimination-related tribunal claims, with 1,294 cases filed between October and December 2025, a 59% year-on-year increase. While many cases are settled early, the financial and reputational risks remain high, with average sexual harassment tribunal claims estimated between £27,000 and £45,000.