Changes to Worker Protection (Amendment of Equality Act 2010) Act 2023

The recent Worker Protection (Amendment of Equality Act 2010) Act 2023, effective from October 2024, has introduced important obligations for employers to strengthen safeguards against sexual harassment in the workplace. This change reflects a shift towards proactive prevention, placing a duty on employers to anticipate and mitigate risks of sexual harassment. Here’s what SME employers need to know and do to ensure compliance and foster a respectful, inclusive workplace.

1. Understand the New Duty to Prevent Sexual Harassment

The core of the legislation requires employers to take "reasonable steps" to prevent sexual harassment of employees. This new duty is "anticipatory," meaning that businesses must proactively address and reduce potential risks. By integrating preventive measures, SMEs can cultivate a healthier workplace culture, improve morale, and reduce liability.

Action Points for SMEs:

• Identify Risk Areas: Conduct workplace assessments to pinpoint where employees might face risks of sexual harassment.
• Prioritize Preventive Measures: Implement strategies that aim to stop harassment before it happens, from creating clear policies to training.

2. Address Third-Party Harassment

Although employers are not directly liable for third-party harassment (such as from clients or customers), the Equality and Human Rights Commission (EHRC) encourages businesses to address it through internal policy and training. Employers can avoid potential reputational damage and contribute to employee well-being by making it clear to third parties that harassment is unacceptable.

Action Points for SMEs:

• Train Staff and Managers: Equip employees with skills for managing uncomfortable interactions, and empower managers to support affected team members.
• Set Boundaries with Third Parties: Communicate zero-tolerance policies on harassment through emails, notices, and other accessible means.

3. Revise Your Anti-Harassment Policies

Effective policies form the backbone of a safe workplace. An updated anti-harassment policy should define sexual harassment, outline reporting processes, and establish consequences for violators. This is particularly crucial for SMEs, where a tight-knit workforce might feel more personally impacted by issues of harassment.

Action Points for SMEs:

• Create a Clear Policy: Detail what constitutes harassment, the process for reporting it, and potential disciplinary actions.
• Make Policies Accessible: Ensure all employees know where to find the policy and understand their rights and responsibilities.

4. Implement Training Programs

A policy alone cannot prevent harassment; training is essential to bring it to life. Regular anti-harassment training ensures employees recognize unacceptable behaviours and know how to respond. Line managers should be specifically trained to handle issues swiftly and appropriately.

Action Points for SMEs:

• Conduct Regular Training: Offer sessions to all employees, including leadership, to underscore the importance of a respectful workplace.
• Update Training Content: Ensure training reflects current terminology, case law, and workplace trends.

5. Gather Workforce Feedback

Understanding your employees’ experiences is crucial in preventing harassment. Collecting data from anonymous surveys or analysing complaint trends can highlight problem areas or departments where issues might be more frequent.

Action Points for SMEs:

• Conduct Surveys and Hold Feedback Sessions: Use anonymous surveys to gather honest insights and consider "lessons learned" sessions to discuss resolved complaints.

6. Regularly Review Risk Assessments

The EHRC underscores the importance of sexual harassment risk assessments to evaluate workplace safety. For SMEs, risk assessments should be ongoing to reflect changes in the business environment.

Action Points for SMEs:

• Run Regular Assessments: Make it routine to assess and address harassment risks within various departments.
• Tailor to Specific Needs: Customize assessments for different work environments and roles.

7. Ensure Effective Reporting Channels

Clear, accessible reporting channels encourage employees to voice concerns without fear. With the new legislation, employers are encouraged to offer multiple reporting options, ensuring complaints are handled quickly and fairly.

Action Points for SMEs:

• Establish Reporting Options: Enable both formal and informal reporting channels and ensure staff know whom they can contact.
• Respond Promptly and Fairly: Handle all complaints confidentially and with due process to maintain trust and fairness.

8. Monitor and Review Compliance Efforts

Compliance with the new duty is not a one-time activity. SMEs should consistently review and update policies, training, and risk assessments to align with evolving legal standards and workplace needs.

Action Points for SMEs:

• Set a Compliance Schedule: Regularly revisit policies, training, and assessments.
• Document Compliance Efforts: Keep records of all actions taken to fulfill the duty as evidence of your commitment.

9. The Cost of Non-Compliance

Failing to meet the new preventative standards for sexual harassment can be costly, with potential financial and reputational impacts that SMEs cannot afford to overlook.

• Uncapped Awards: Sexual harassment claims carry uncapped compensation, meaning employers could face significant financial liability based on the specifics of each case. Even a single claim can result in substantial costs that may go beyond the employer’s expectations.
• Compensation Uplift: Under the new legislation, if a tribunal finds that an employer has not taken "reasonable steps" to prevent harassment, there is an added penalty. The tribunal has the power to increase the awarded compensation by up to 25%. This uplift is intended to enforce compliance, and it can quickly turn a large settlement into an overwhelming financial burden for SMEs.
• It is important to remember that if you are unable to show a tribunal documented evidence that you have taken steps to comply with these changes in the legislation you will again be hit with a 25% uplift in any award.
• Indirect Costs: Beyond direct financial penalties, non-compliance can lead to a toxic workplace environment, decreased employee morale, increased turnover, and potential damage to the company’s brand reputation.

Can your business afford not to comply with the changes to the Worker Protection (Amendment of Equality Act 2010) Act 2023, contact us for more information about how KeyHR can ensure your business does not fall on the wrong side of the new protection against sexual harassment legislation