Small and medium-sized businesses are the backbone of the British economy, employing millions and fostering innovation. However, with this role comes the obligation to provide a safe and respectful workplace. The Worker Protection (Amendment of Equality Act 2010) Act 2023 introduces significant changes aimed at combating sexual harassment in the workplace, reinforcing the responsibilities of employers. Understanding these new requirements is crucial for compliance and for maintaining a positive workplace culture.
Read our guide to what is Sexual Harassment
This Act strengthens the existing Equality Act 2010 by introducing enhanced protections against workplace sexual harassment. It imposes additional duties on employers to actively prevent such misconduct and reintroduces employer liability for third-party harassment.
The legislation was prompted by rising concerns about workplace harassment, highlighted by movements such as #MeToo and subsequent public and parliamentary scrutiny. The new rules reflect an evolution from reactive policies to proactive measures aimed at prevention and accountability.
Employers must now take "all reasonable steps" to prevent sexual harassment in the workplace. This is a shift from the previous framework, where employers were primarily held accountable only after an incident occurred.
The Act reintroduces liability for harassment perpetrated by third parties, such as customers, clients, or contractors. Businesses are now expected to address such risks through appropriate policies and training.
Failure to meet the new requirements could result in an uplift of up to 25% in compensation awards for successful claims, emphasising the importance of compliance.
To navigate these changes effectively, businesses should focus on implementing robust policies, fostering a culture of respect, and ensuring employees feel safe to report concerns. Below are practical steps to align with the new legal framework:
While the legal changes are clear, practical implementation can be challenging for smaller businesses with limited resources. Below are some common pitfalls and strategies to avoid them:
Many SMEs operate with outdated or vague anti-harassment policies. Engage HR professionals or consult external resources such as ACAS's guidance on harassment prevention to create comprehensive policies tailored to your business.
A one-off training session is insufficient. Develop a regular schedule for training updates, ensuring all employees remain informed. Managers because of the power dynamic between them and their reports are a particular risk and may need manager specific training.
Businesses often overlook the behaviour of clients or customers. Conduct risk assessments and consider contractual clauses to ensure third parties adhere to respectful conduct standards. Ensure you have robust policies in place and that customer-facing staff know what is unacceptable and how to deal with anything that comes up. It is vital that staff know they will have support from management.
Employees are less likely to report issues if they fear retaliation or believe their concerns will be ignored. Address this by creating transparent, confidential, and well-publicised reporting channels.
Failure to meet the requirements of the Worker Protection Act can have severe consequences, including:
Financial penalties, such as increased compensation awards in tribunal cases.
Reputational damage, can deter talent and cParagraphents.
Reduced employee morale and productivity, resulting from a toxic workplace culture.
Conversely, businesses that comply and foster a respectful environment can enhance employee satisfaction, improve retention, and attract top talent.
The Worker Protection (Amendment of Equality Act 2010) Act 2023 represents a significant step forward in workplace equality and safety. By understanding and implementing the changes, small and medium-sized businesses can not only meet their legal obligations but also build a stronger, more inclusive workplace culture.
For further guidance, employers should consult reputable sources such as the ACAS website or seek advice from employment law professionals. Proactivity, transparency, and a commitment to fostering respect are the cornerstones of navigating this new regulatory landscape.
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