What the duty is now, and what it becomes
The duty that came in during October 2024 asks you to take reasonable steps to prevent sexual harassment of your employees. It is a positive duty. You do not get to wait for a complaint and then respond well. You are supposed to have acted beforehand.
From October 2026 the wording changes to all reasonable steps. That sounds like a small edit. It is not. Reasonable steps invites the question 'did you do something sensible?'. All reasonable steps invites a harder one: 'what else could you have done, and why didn't you?'
In practice a tribunal will work through the things you could have done, and you will need an answer for each one you skipped.
Write down every step you have already taken, with dates. If you cannot evidence it, you cannot rely on it.
You become responsible for people who do not work for you
This is the change most owners have not clocked. From October 2026, liability for third-party harassment returns. That means customers, clients, suppliers, contractors and members of the public.
If a customer harasses one of your staff and you have not taken all reasonable steps to prevent it, that is your problem, not just theirs.
For anyone with a shop floor, a bar, a salon, a site or a reception desk, this is a genuine change in exposure. Your team have probably been putting up with things for years that nobody wrote down.
Ask your customer-facing staff what they have had to deal with. Most owners are surprised, and the conversation itself counts as a step.
What it costs when it goes wrong
Two things happen. The Equality and Human Rights Commission can take enforcement action against you directly, whether or not anyone has brought a claim.
And in a successful sexual harassment claim, a tribunal can increase the compensation by up to 25% where you have breached the duty. That uplift sits on top of an award which is uncapped, because discrimination awards always have been.
There is a separate change worth knowing. Since April 2026, a disclosure about sexual harassment is explicitly a protected disclosure under whistleblowing law. So someone who raises it has whistleblower protection as well.
What all reasonable steps actually looks like
The case law is fairly consistent about what counts, and none of it is complicated or expensive.
A policy that exists, is specific to sexual harassment rather than buried in a general dignity at work section, and that your staff have actually seen. Training that people have genuinely done, with a record of who and when. A way to raise a concern that does not require telling the person who might be the problem. And complaints handled properly when they come.
The thing that fails most often is not the absence of a policy. It is a policy nobody has read, written three years ago, sitting in a folder.
Do a risk assessment. Where in your business could this realistically happen, who is exposed, and what have you done about it? Write it down and date it.
The honest position for a small business
You are not expected to do what a company of ten thousand people does. Reasonable is judged against your size and your resources.
But small does not mean exempt, and it is not a defence to say you never thought about it. The duty applies to every employer.
The good news is that for most owner-managed businesses this is a few hours of work, not a project. A proper policy, a short training session, a clear route to raise something, and a written note of the risks you identified. That is most of the way there.
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Frequently asked questions
Does this apply to a business with five employees?
Yes. The duty applies to every employer regardless of size. What counts as reasonable is judged against your size and resources, so you are not held to the standard of a large corporate, but you are not exempt either.
We have a dignity at work policy. Is that enough?
Probably not on its own. The expectation is a policy that deals specifically with sexual harassment, that your staff have actually seen, alongside training and a way to raise concerns. A general policy nobody has read is the most common failing.
What if the harassment is by a customer?
From October 2026 that can be your liability if you have not taken all reasonable steps to prevent it. This is the change most owners have missed, and it matters most where staff deal with the public.
How long does it take to get this right?
For most owner-managed businesses, a few hours rather than a project. The policy, a short training session, a clear reporting route and a written risk assessment covers most of it.
Key takeaways
- From October 2026 the duty rises from reasonable steps to all reasonable steps
- You become liable for harassment by customers, contractors and the public
- A tribunal can add up to 25% to compensation where you have breached the duty
- The EHRC can act against you without anyone bringing a claim
- A policy nobody has read is the most common failure, and the easiest to fix
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