Key takeaways
- Harassment under the Equality Act 2010 is unwanted conduct related to a protected characteristic that violates dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment.
- Employers are vicariously liable for harassment by their staff unless they can show they took 'all reasonable steps' to prevent it, a high bar that a single policy will not meet.
- Since 26 October 2024, employers have a new proactive duty to take reasonable steps to prevent sexual harassment, including by third parties such as customers and contractors.
- Harassment compensation is uncapped at tribunal and includes injury to feelings (Vento bands: £1,200 to £58,700), with a 25% uplift available where the preventative duty has been breached.
- Defensible employers run a written policy, manager and staff training, a risk assessment, a clear reporting route and a documented investigation. Reactive-only employers lose.
Workplace harassment sits at the intersection of employment law, culture and risk. Get it wrong and you face an uncapped tribunal award, reputational damage and, since October 2024, enforcement action by the Equality and Human Rights Commission. Get it right and you reduce turnover, absence and grievance volume. This guide covers the legal framework, what employers must now do proactively, how claims play out and how to handle a live complaint.
What is workplace harassment under UK law?
Section 26 of the Equality Act 2010 defines harassment as unwanted conduct related to a relevant protected characteristic which has the purpose or effect of violating someone's dignity, or creating an intimidating, hostile, degrading, humiliating or offensive environment for them.
The protected characteristics are age, disability, gender reassignment, race, religion or belief, sex and sexual orientation. (Marriage/civil partnership and pregnancy/maternity are protected for discrimination but not separately for harassment.)
Three things matter in that definition:
- Unwanted. The recipient does not have to object at the time. Silence is not consent.
- Related to a protected characteristic. The conduct does not have to be directed at the recipient, overheard comments and "office banter" both qualify.
- Purpose or effect. Even if the perpetrator did not intend offence, conduct can still amount to harassment if it had that effect and it was reasonable for it to have that effect.
Sexual harassment is treated separately under section 26(2): unwanted conduct of a sexual nature with the same purpose-or-effect test.
Harassment vs bullying
Bullying is not a standalone legal term in the UK. Where the conduct is linked to a protected characteristic, it is harassment under the Equality Act. Where it is not, it can still found a constructive unfair dismissal claim (breach of the implied term of trust and confidence) or a personal injury claim if it caused recognised psychiatric harm. Either way the employer's exposure is real, the label is not the issue.
When is the employer liable?
Under section 109 of the Equality Act, an employer is vicariously liable for harassment committed by an employee "in the course of employment", whether or not the employer knew or approved. The same applies to agents acting with the employer's authority.
The statutory defence is at section 109(4): the employer is not liable if it can show it took "all reasonable steps" to prevent the employee from doing the act, or from doing anything of that description. In practice tribunals look for:
- A written, current and well-publicised anti-harassment policy
- Training that is recent, role-specific and refreshed (not a one-off induction tick)
- A clear, multiple-route reporting mechanism (line manager, HR, an external whistleblowing line)
- Evidence the policy is enforced, prior complaints investigated and acted on
- A risk assessment, especially for client-facing, hospitality, lone-working and night-economy roles
A dusty handbook clause is not enough. Tribunals have repeatedly held that "reasonable steps" means demonstrable, current and proportionate to the risk.
The new preventative duty (26 October 2024)
The Worker Protection (Amendment of Equality Act 2010) Act 2023 introduced a new positive duty on employers, in force from 26 October 2024, to take reasonable steps to prevent sexual harassment of their workers in the course of employment. The Equality and Human Rights Commission (EHRC) has enforcement powers and has published technical guidance.
Key points employers often miss:
- The duty is anticipatory, you must act before a complaint is made, not after.
- It expressly covers third-party harassment, by customers, clients, contractors, patients, members of the public. Hospitality, retail, healthcare and the night-time economy are squarely in scope.
- A breach gives tribunals power to uplift any sexual-harassment compensation by up to 25%.
- The EHRC can investigate, issue unlawful-act notices and enter into binding action plans, independently of any individual claim.
What the duty looks like in practice: a documented risk assessment specific to your operation, a refreshed anti-harassment policy that names third-party harassment, manager training on intervention, bystander training for staff, a reporting route that works on shift at 11pm not just 9-to-5, and a periodic review with named ownership.
How harassment claims work
A worker brings a claim in the employment tribunal under sections 26 and 39 of the Equality Act. There is no qualifying service period and the claim can be brought during employment. The time limit is three months less one day from the act complained of (or from the end of a series of continuing acts), extended by the ACAS Early Conciliation period.
Awards have three components:
- Compensation for financial loss, uncapped, including lost earnings if the harassment caused resignation or dismissal.
- Injury to feelings, the Vento bands (Presidential Guidance, updated April 2025): lower £1,200 to £12,100, middle £12,100 to £36,400, upper £36,400 to £58,700, with exceptional cases above.
- Personal injury, where a recognised psychiatric condition is medically evidenced.
Interest runs on injury to feelings from the date of the act, and on financial loss from the mid-point between act and hearing. ACAS uplifts of up to 25% apply where the employer unreasonably failed to follow the ACAS Code on Grievances. The sexual-harassment preventative-duty uplift is on top.
How to handle a live complaint
Speed and structure matter. The most common reason employers lose harassment claims is not the underlying conduct, it is the response.
- Acknowledge in writing within 24 hours. Confirm receipt, name the investigator, set expectations on timing and confidentiality. Do not promise outcomes.
- Take interim measures. Separate the parties where appropriate (adjusted reporting line, change of shift, paid suspension of the alleged harasser as a neutral act, not a sanction). Do not move the complainant by default, it can itself be a detriment.
- Investigate properly. Appoint someone independent and trained. Interview the complainant, alleged harasser and witnesses, separately, with written notes signed by each. Collect documentary evidence (emails, Slack, CCTV, rotas) before it disappears.
- Reach a reasoned decision. Apply the civil standard, balance of probabilities. Findings should be specific: which allegations are upheld, on what evidence, and why.
- Act on the outcome. Disciplinary action where upheld (up to and including summary dismissal for gross misconduct), policy or training changes, and clear communication to the complainant about what has been done (within data-protection limits on what you can disclose).
- Offer an appeal. A right of appeal is required under the ACAS Code. Heard by someone more senior and not previously involved.
- Follow up. Check in with the complainant at 4 and 12 weeks. Victimisation, being treated badly for raising a complaint in good faith, is a separate Equality Act claim.
What employers must put in writing
- An anti-harassment and anti-bullying policy that names sexual harassment and third-party harassment specifically.
- A risk assessment covering customer-facing, lone-working and out-of-hours roles.
- A training log showing who has been trained, when, and on what.
- A grievance procedure that meets the ACAS Code.
- A whistleblowing/speak-up route that is independent of the line.
Common employer mistakes
- Treating the policy as the compliance. A policy without training, risk assessment and enforcement will not meet the "reasonable steps" defence and will not satisfy the preventative duty.
- Informal resolution by default. Encouraged in low-level cases, but you cannot insist on it where the conduct is serious or the complainant declines.
- Confidentiality clauses that gag complainants. NDAs in harassment settlements are under intense scrutiny, draft them narrowly and never to prevent reporting to a regulator or the police.
- Ignoring third-party harassment because "the customer is always right". Post-October 2024, that is a direct breach of the preventative duty.
- Dismissing the complainant as a "problem". Victimisation claims are easier to prove than the underlying harassment and attract their own injury-to-feelings award.
Need help with a live complaint or your preventative-duty programme?
Our Employment Law Advice for Employers service includes a documented anti-harassment programme that meets the preventative duty, manager and bystander training, a risk-assessment template, and same-day support when a complaint lands. For larger or contested cases we co-handle the investigation with solicitors so the work is privileged from the outset.
This content is for general information only and does not constitute legal advice. For advice on your specific situation, please contact one of our HR experts.
