Upcoming Changes Under the Employment Rights Act 2025

The Employment Rights Act 2025 continues to bring significant changes for employers, with October marking the next phase of reform. This article considers the amendments to the current harassment framework that will come into force on 30 October 2026 and examines how employers’ obligations will be expanded as a result.

Sexual Harassment

Presently, employers are expected to take “reasonable steps” to prevent sexual harassment of their employees in the course of their employment under the Equality Act 2010. From 30 October 2026, however, this obligation will be widened, requiring employers to take “all reasonable steps” to prevent such harassment. The consequences of failing to meet this higher threshold could be considerable, as an Employment Tribunal may increase any discrimination compensation awarded by up to 25% where it finds that an employer has breached this duty (as with the current regime). Importantly, the revised duty is not confined to harassment by an employer’s own employees, but also extends to sexual harassment perpetrated by third parties.

While the government had originally been expected to publish regulations setting out the steps that would be regarded as “reasonable” in 2027, recent reports suggest that these may now not be issued until 2028. However, they are expected to identify a range of measures employers should take, including conducting risk assessments, publishing action plans and policies, implementing appropriate reporting procedures, and establishing effective processes for handling complaints of sexual harassment.

Third-Party Harassment

The requirement to prevent harassment by third parties is not limited to sexual harassment. From 30 October 2026, employers will also be under a duty to take all reasonable steps to prevent third party harassment of employees in the course of their employment where that harassment relates to a relevant protected characteristic. This builds on the existing protections against harassment, which are principally aimed at preventing employers and their employees from harassing other employees and job applicants.

The expanded duty will be a particular concern for many employers, especially those whose employees regularly interact with third parties over whom they have little or no control – for example in the retail, leisure and hospitality sectors. The government has indicated that the expectations placed on employers in relation to preventing third-party harassment will be less onerous than those relating to harassment by their own employees. In its harassment factsheet, the government stated that this “will be taken into account by the Employment Tribunal when considering the facts of the case” and that “employers simply need to do what is reasonable”. However, it remains to be seen how much lower the Tribunals will set the bar and the precise steps that will be regarded as “reasonable” in any given circumstance remain unclear.

In practice, employers should consider the nature of any contact with third parties, including the type of third party involved, the frequency of such interactions, and the environment in which they occur when drawing up plans and policies and implementing practical steps to prevent third party harassment.

Next Steps

As the key date of 30 October 2026 draws closer, it is increasingly important to review and update current documentation and processes to protect your staff and business as far as possible.

While the absence of statutory regulations specifying reasonable steps to prevent sexual harassment means there is some uncertainty as to what will be deemed a compliant approach, attention can and should be given to guidance previously published by the Equality and Human Rights Commission and to taking steps to address the risks which are particular to your own business and industry.

If any of the points raised above are a concern, please do not hesitate to contact Jake King at: jake.king@fsp-law.com to discuss the potential impact of these changes on your organisation and what you can do to prepare for the new requirements.