The forthcoming third-party harassment provisions represent one of the most significant workplace conduct changes facing employers in 2026. For many employers, dealing with harassment is relatively straightforward when the perpetrator is a member of staff. Policies can be enforced, disciplinary action taken and, where necessary, employment terminated.
The position becomes far more uncomfortable when the individual responsible is a customer, client, patient, service user or other third party whose relationship with the business is commercially important.
Many HR professionals will recognise the scenario. An employee complains that a key client has made racist comments, sexually inappropriate remarks or disparaging comments relating to their disability. The employee wants action taken. HR agrees something must be done. But management worries about damaging a valuable commercial relationship.
Historically, some organisations have sought refuge in the argument that “we cannot control what our customers say.” From October 2026, that argument is unlikely to be acceptable.
A Significant Change in Employer Liability
The Employment Rights Act reforms will introduce a new regime under which employers can be held liable for harassment of their workers by third parties where they have failed to take all reasonable steps to prevent it. Importantly, this protection extends across protected characteristics under the Equality Act 2010 and is not limited to sexual harassment.
At the same time, the existing duty to take “reasonable steps” to prevent workplace sexual harassment will be strengthened. Employers will be expected to demonstrate that they have taken all reasonable steps, raising the standard against which their actions will be judged.
Organisations dealing regularly with members of the public are likely to face particular exposure. For employers operating in customer-facing environments, this represents a substantial shift in legal risk.
The Difficult Cases Are Not the Obvious Ones
Most organisations would act quickly if an unknown customer harassed an employee and then left, never to return. The truly difficult situations arise when the harasser is commercially important. If the behaviour comes from a long-standing major customer or client, no matter what the level of the employee experiencing the conduct, measures must be taken.
What Does “All Reasonable Steps” Mean?
It is not clearly defined, this will continue to develop through guidance and case law. However, employers will be expected to produce evidence of proactive prevention rather than reactive damage control. This will involve employers undertaking Risk Assessments.
Identify where the risk of third-party harassment is highest. In particular consider for example customer-facing roles, professional services relationships, lone working arrangements and events and networking functions. Take the time to identify not just the obvious risk, have an anti-harassment policy adapted for your business.
Policies and Reporting Procedures
Employees should know what harassment is, how to raise their concerns and to whom they should report concerns. The business must make clear what to expect when reporting takes place. Managers should also understand how to escalate complaints involving customers and clients rather than employees.
Staff Training
Practical staff training should take place with guidance to manager on the following:
- Recognising third-party harassment.
- Responding to complaints.
- Documenting incidents.
- Escalating concerns appropriately.
Client and Customer Expectations
Many organisations may need to consider incorporating behavioural expectations into their visitor policies, supplier agreements and customer terms and conditions. Where appropriate, organisations should be willing to challenge unacceptable behaviour regardless of the commercial relationship involved.
Documentation
The ability to demonstrate what was done will be critical. Employers should retain records of:
- Complaints received.
- Investigations undertaken.
- Actions taken.
- Training delivered.
- Risk assessments completed.
- Communications with third parties.
If challenged, evidence may be the difference between demonstrating compliance and defending the indefensible.
The EHRC Risk Many Employers Overlook
There is another dimension that businesses sometimes underestimate.
Many employers focus exclusively on the risk of an Employment Tribunal claim.
However, the Equality and Human Rights Commission (EHRC) has enforcement powers and can take regulatory action relating to employer compliance. This means that legal and reputational scrutiny can arise even where no employee brings tribunal proceedings.
How Employers Should Prepare Now
With the October 2026 implementation date approaching, organisations should avoid waiting until a complaint arises before reviewing their arrangements.
A practical preparation plan should include:
- Reviewing harassment and dignity-at-work policies.
- Assessing areas where employees interact with customers, clients and the public.
- Training managers on handling third-party complaints.
- Establishing clear escalation procedures.
- Reviewing contractual arrangements with clients and customers where appropriate.
- Introducing reporting and monitoring mechanisms.
- Auditing current measures against the forthcoming “all reasonable steps” standard.
- Ensuring senior leadership understands that commercial value is not a defence to inaction.
The real challenge will not be identifying harassment by strangers. It will be responding appropriately when the individual responsible is someone the business would prefer not to upset.
The organisations best placed to manage this risk will be those that prepare now, train their managers effectively and create clear processes for addressing complaints before they escalate into claims at the employment tribunal.
Spire Solicitors LLP Employment Law Team
Whether you are an employer seeking to prepare for the new obligations or an employee who has experienced harassment in the workplace, obtaining timely legal advice can make all the difference. Our specialist Employment Law team advises both employers and employees on workplace harassment, discrimination, investigations, grievance procedures and tribunal claims. If you would like practical guidance on your rights, responsibilities or next steps, please get in touch with our team on 01603 677077 or email info@spiresolicitors.co.uk.
