Employment Rights Act 2025: sexual harassment and third-party harassment reforms explained

The legal landscape surrounding workplace sexual harassment is changing rapidly. In recent years, there has been an increasing focus on employers' responsibilities to create safe working environments and take proactive steps to prevent inappropriate conduct.

The Employment Rights Act 2025 builds on existing reforms and signals a clear shift away from a reactive approach towards one focused on prevention. For employers, this means greater scrutiny of workplace culture, policies and procedures, as well as an increased expectation that risks will be identified and addressed before issues arise.

Understanding these developments will be essential for organisations seeking to reduce legal risk, protect their workforce and demonstrate compliance with evolving employment law obligations.

In this article, associate Isabella Lumsden discusses the Government's proposed reforms to workplace sexual harassment protections, including employers' preventative duties, third-party harassment and the steps individuals and organisations should be taking now.

Employers are no longer expected simply to respond to allegations of sexual harassment after they occur.

The law now places a proactive duty on employers to take reasonable steps to prevent sexual harassment in the workplace. This requires organisations to consider where risks may arise, implement appropriate preventative measures and foster a workplace culture in which unacceptable behaviour is challenged and addressed.

The focus is increasingly on prevention rather than response. Employers who cannot demonstrate that they have actively considered workplace risks and taken appropriate action may find it more difficult to defend claims if issues arise.

Further reforms are expected to strengthen employers' obligations even further.

One of the most significant proposed changes would require employers to take all reasonable steps to prevent sexual harassment, replacing the current requirement to take reasonable steps.

While the distinction may appear subtle, in practice it is likely to raise the bar considerably. Employment tribunals may look more closely at whether there were additional measures available to an employer and whether more could reasonably have been done to reduce the risk of harassment occurring.

This could place greater emphasis on regular training, workplace risk assessments, reporting mechanisms, management accountability and ongoing monitoring of workplace culture.

Another significant development is the proposed reintroduction of employer liability for third-party harassment.

This would mean employers could, in certain circumstances, be held responsible where workers are subjected to sexual harassment by individuals who are not employees, including:

• Customers

• Clients

• Service users

• Contractors

• Visitors

• Guests

For employers operating in customer-facing environments, this represents a potentially significant expansion of risk.

Businesses may need to consider what steps they can reasonably take to prevent inappropriate behaviour by third parties, including implementing reporting procedures, setting expectations around conduct and ensuring managers know how to respond when concerns are raised.

The Employment Rights Act also strengthens protections for individuals who report sexual harassment.

Reports of sexual harassment may now attract whistleblowing protection where the legal requirements for a protected disclosure are met. This means workers who raise concerns could receive enhanced protection from retaliation or detriment.

As a result, employers should ensure they have clear and trusted channels through which employees can raise concerns and feel confident those concerns will be taken seriously.

Creating an environment where employees are comfortable speaking up is likely to become increasingly important as regulatory expectations continue to evolve.

The Government has also indicated an intention to limit the use of confidentiality clauses and non-disclosure agreements in cases involving harassment and discrimination.

Although the full details are still developing, the direction of travel is clear. Employers should ensure that settlement agreements, workplace policies and confidentiality provisions do not prevent individuals from reporting misconduct, cooperating with investigations or exercising their legal rights.

Organisations that continue to rely heavily on confidentiality provisions as a risk-management tool may need to review their approach as reforms progress.

Employers should take a proactive approach to preparing for current and future obligations.

Practical steps to consider include:

• Reviewing sexual harassment and dignity at work policies

• Conducting workplace risk assessments

• Implementing robust reporting and escalation procedures

• Delivering meaningful and regularly refreshed training

• Reviewing whistleblowing arrangements

• Assessing risks arising from third-party interactions

• Ensuring managers understand how to identify and respond to concerns

• Keeping clear records of preventative measures and training activity

Taking these steps can help organisations demonstrate compliance while also supporting a safer and more respectful working environment.

As the legal framework surrounding workplace harassment continues to evolve, it is increasingly important for individuals and organisations to understand their rights and responsibilities.

Our employment lawyers regularly advise employees who have experienced harassment or discrimination at work, as well as employers seeking guidance on prevention, investigations, policies and workplace culture. We have extensive experience supporting clients through sensitive and complex workplace disputes, helping them achieve practical and effective outcomes.

Whether you are dealing with a current issue or seeking advice on the implications of the latest reforms, our team can help you understand your options and navigate the process with confidence.