The harassment liability landscape is shifting faster than most employers realise

Employment law rarely moves at breakneck speed, but harassment liability is the exception. What started as a gradual evolution has accelerated into rapid-fire legislative changes that are catching many organisations off guard.

At Inclusive Employers, we’ve been tracking these developments closely, and the picture emerging is one that demands immediate attention from every HR professional and organisational leader.

The harassment liability changes happening now (and what’s coming next)

The Workers Protection Act 2023 introduced something unprecedented: a proactive duty to prevent sexual harassment. Since October 2024, employers must actively identify risks and take reasonable steps to mitigate them. Fail to do so, and tribunal awards could increase by 25% – potentially adding £12,500 to the average £50,000 award, or nearly £250,000 to the highest awards we’ve seen.

But this is just the beginning.

The Employment Rights Bill 2024, currently progressing through the House of Lords, is expected to dramatically expand these obligations. We’re looking at three game-changing developments that could take effect by the end of 2025:

First, the prevent duty extending to all protected characteristics – not just sexual harassment. Second, the standard shifting from ‘reasonable steps’ to ‘all reasonable steps’ across all protected groups. Third, employers becoming directly liable for protecting employees from third-party harassment.

This isn’t just legal housekeeping. It’s a fundamental shift in how workplace safety and inclusion intersect with legal liability.

Why this matters more than you might think

The legal framework is evolving because our understanding of workplace harm has evolved. What once might have been dismissed as ‘banter’ or overlooked as minor incidents are now recognised for what they often are: systematic patterns that create hostile environments and drive talented people away from organisations.

The courts are taking notice. In Campbell v Sheffield Teaching Hospitals NHS Foundation Trust, we saw how organisations with robust inclusive practices can successfully defend harassment claims. But the key word is ‘robust’ – surface-level policies and tick-box training won’t cut it anymore.

With the proposed changes, the bar is rising significantly. Employers will need to demonstrate they’ve considered every possible action and implemented all reasonable measures. That’s a comprehensive, strategic approach – not an afterthought.

The opportunity hidden in the challenge

Whilst these changes create new legal obligations, they also present an opportunity. Organisations that get ahead of the curve won’t just be protecting themselves legally – they’ll be creating genuinely inclusive environments that attract and retain the best talent.

The most successful organisations we work with don’t see inclusion as a compliance exercise. They understand it as a strategic advantage that happens to have strong legal protections built in.

But here’s the critical point: the window for getting this right is narrowing. The organisations that start preparing now will be ready when the new duties come into force. Those that wait could find themselves scrambling to catch up whilst facing significantly higher legal and reputational risks.

What happens next

These legislative changes represent the most significant shift in harassment liability we’ve seen since the Equality Act 2010. The implications stretch far beyond HR departments – they touch every aspect of how organisations create and maintain their workplace culture.

Understanding exactly what’s required, when it’s required, and how to implement effective measures isn’t straightforward. The devil, as always, is in the detail.

We hosted a free webinar to break down exactly what these changes mean for your organisation and what you need to do to prepare. Our inclusion experts talked through the practical implications and shared insights from our work with hundreds of organisations navigating these challenges.