From 30 October 2026, employers can be liable for harassment by third parties.
In short
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From 30 October 2026, employers can be liable for harassment by third parties.
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That includes customers, clients, contractors, suppliers and visitors.
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One incident can be enough.
What Changes?
From 30 October 2026, employers face new responsibilities relating to harassment of their employees by third parties.
Under the new provisions, employers must not "permit" a third party to harass their employees. An employer may be liable where harassment occurs in the course of employment and it has not taken all reasonable steps to prevent it.
Importantly, these protections extend beyond sexual harassment. They cover harassment related to protected characteristics including:
- Age
- Disability
- Gender reassignment
- Race
- Religion or belief
- Sex
- Sexual orientation
There is no requirement for a previous incident to have occurred before liability can arise. A single incident may be sufficient, depending on the circumstances.
The key point: Employers need to consider the behaviour of people their employees encounter through work, not just the behaviour of colleagues.
"The Customer Is Always Right"
Not any more.
A manager who tells an employee to put up with inappropriate behaviour from a difficult customer or important client is creating more than a workplace culture problem.
They may also be exposing the organisation to legal risk.
Commercial relationships matter, but they do not remove an employer's responsibility to protect its people.
Your employees should not have to tolerate harassment simply because the person responsible is a customer, client or supplier.
What Reasonable Steps Might Look Like
Employers have less direct control over third parties than they do over their own employees. However, that does not mean they can ignore the risks.
Prevention should be practical, proportionate and tailored to the situations in which employees interact with people outside the organisation.
Sensible steps may include:
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Mapping third-party interactions.
Identify who your employees deal with, where those interactions take place and which situations present the greatest risk.
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Customer codes of conduct and signage.
Set clear expectations about acceptable behaviour and communicate that harassment will not be tolerated.
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Appropriate contractual protections.
Review agreements with clients and suppliers to address expected behaviour, the right to remove individuals and the consequences of misconduct.
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Safe working arrangements.
Consider the particular risks associated with events, late shifts, lone working and visits to client premises.
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Accessible reporting routes.
Ensure employees know how to raise concerns, including outside normal working hours.
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Managers who are trained to intervene.
Give managers the confidence and authority to challenge inappropriate behaviour and protect employees.
The government recognises that employers have less control over third parties. Nevertheless, preventative measures need to be genuine and effective, rather than simply written into a policy.
A practical question for managers: If an employee reports harassment by a customer or client, do you know what action you can take immediately, who to involve and how to protect the employee?
What to Do Now
Employers should review their existing arrangements and identify where third-party harassment risks may not yet be adequately addressed.
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Add third parties to your harassment risk assessment.
Consider customers, clients, contractors, suppliers, visitors and anyone else employees encounter through their work.
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Review key client and supplier contracts.
Check whether your agreements contain appropriate expectations and safeguards relating to behaviour towards employees.
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Train your people properly.
Make sure employees understand how to report concerns and managers know how to recognise, prevent and respond to harassment.
The aim is to create a working environment where employees feel protected and managers are prepared to act when third-party behaviour crosses the line.
Let's Talk
Customer-facing businesses may face some of the most significant practical challenges arising from the new third-party harassment provisions.
At Impact Lawyers, we help businesses identify their risks and put sensible, practical preventative measures in place.
Whether you need support with harassment risk assessments, client and supplier contracts, workplace policies or manager training, we can help.
Contact Victoria to discuss how we can support your business.
Email:
victoria.hall@impactlawyers.co.uk
By Victoria Hall, Co-Founder Employment Law
Victoria is an experienced employment lawyer, a Level 7 CIPD-qualified HR professional, accredited external workplace investigator, practising coach and a non-executive director.
This article is for informational purposes only and does not constitute legal advice. For specific legal advice tailored to your business, please contact the Impact Lawyers team at
contact@impactlawyers.co.uk
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