Employers face greater legal risks this festive season due to new sexual harassment laws that came into effect in October.
Under the Worker Protection Act, organisations are now legally required to take “reasonable steps” to protect employees from sexual harassment, even at work-related social events such as Christmas parties.
Daniel Gorry, a Partner in the Lindsays employment law team, explains:
“Just because something might not take place in the actual workplace, it doesn’t mean that the employer will not have any legal responsibility for what happens there. Incidents at any work-organised party or gathering can be classed as being in the course of employment.”
This includes events ranging from after-work drinks to the office Christmas party, all of which fall under workplace harassment rules.
What the worker protection act means for employers
The Act places a legal duty on employers to take proactive steps to prevent sexual harassment by both colleagues and third parties, such as clients or customers. This means employers must communicate their stance clearly, ensure staff understand the expected behaviour, investigate complaints, and take action if wrongdoing is found.
If these duties are not fulfilled, compensation awarded by an employment tribunal can increase by up to 25%.
Daniel adds: “The new law means that employers need to be more vigilant than ever about inappropriate behaviour at their seasonal celebrations. Everyone wants to have fun and relax after a busy year, but alcohol can lower inhibitions, blur boundaries, and increase the risk of unwanted sexual attention or uncomfortable situations. This can easily stray into misconduct for which the employer is legally responsible.”
Steps employers should take to prevent sexual harassment
The Equalities and Human Rights Commission (EHRC) will have the power to investigate businesses that fail to safeguard their employees under the new Act.
To demonstrate compliance with the Worker Protection Act, the EHRC outlines eight steps employers should follow:
- Have an effective anti-harassment policy in place.
- Maintain open channels for staff to raise concerns, such as one-to-ones and exit interviews.
- Conduct risk assessments for both the workplace and events.
- Ensure staff know how to report harassment.
- Train all employees on acceptable behaviour and complaint procedures.
- Investigate all complaints thoroughly and follow policy guidelines.
- Treat third-party harassment complaints as seriously as internal ones.
- Regularly review and update prevention measures.
“Sexual harassment remains far too prevalent in the workplace and often stems from power imbalances,” Daniel continues. “This new legislation underscores employers’ duty to assess and mitigate these risks, ensuring the workplace is safe and respectful for everyone.”
Employers are encouraged to act now to protect their employees and ensure compliance with the new legal requirements.
For further advice, contact the Lindsays Employment Team.
First Christmas under new tip-sharing rules
This is also the first festive season under the Employment (Allocation of Tips) Act, which mandates that all tips, whether paid in cash or by card, must be allocated fairly among staff. Businesses that fail to comply can face penalties of up to £5,000 per employee and orders on future tip allocation.
Lindsays has been advising clients, particularly in hospitality, on ensuring they have the necessary policies in place to comply with the new rules. You can learn more here: Lindsays | Tipping point: Hospitality businesses urged to get ready for new tips law
