Over the recent weeks, there have been concerns raised about the reintroduction of employer liability for third-party harassment of staff.  It can be easy to dismiss the concerns as alarmist, but there are important issues for employers in this new liability, write Michael Brownlee and Libby Hubbard.

The purpose of this article is to answer the following questions;

What does third-party harassment liability mean for employers?

The Employment Rights Bill will introduce a new provision to the Equality Act 2010 (EqA 2010) (the timing of this is still unknown). An employer must not permit a third party to harass an employee during their employment.  

Under the Bill, a third party is defined as anyone who is neither the employer nor any of their other employees. The net of third parties is therefore thrown wide. It will include contractors, people supported in care settings and families and friends, tenants, tenants’ families and friends, other service providers or any customers or clients (not an exhaustive list). 

Applying the EqA 2010 definition of harassment, employers will have to prevent (or in the wording of the new clause “must not permit”) a third party creating, either intentionally or not, a working environment for the employee where they feel their dignity has been violated or they are having to work within an intimidating, hostile, degrading, humiliating or offensive environment.  

Whether the behaviour of the third party has created such an atmosphere will depend on a combination of the subjective perception of the employee and the objective assessment of the circumstances, and whether it’s reasonable for such actions to have this effect. Under the new legislation, only if an employer can demonstrate that it took all reasonable steps to prevent these behaviours from happening will they avoid responsibility. 

This measure is part of the Government’s commitment to making workplaces safer and ensuring employers are actively protecting their staff not only from harassment between colleagues but also from harassment from non-employees. This has been mirrored in the Worker Protection (Amendment of the Equality Act 2010) Act 2023 and the mandatory duty to prevent sexual harassment in the workplace, which again includes the duty to prevent third-party sexual harassment (see our blog). 

What are the limits to this liability?

Most reasonable employers will want to protect their employees from aggressive or unpleasant behaviour from third parties.

Taking a purely commercial perspective, an employee being subjected to any type of abuse is unlikely to be happy in their work and hence unlikely to be performing well. However, some employers worry about how the new provision will be applied. We go back to our original question: will an overheard conversation between two contractors that they classify as ‘banter’ or an exchange of opinions, be considered harassment if an employee hears it and finds it offensive?

This was an issue picked up by a parliamentary body – the Judicial Committee on Human Rights. Their role is to ensure that new legislation is consistent with the articles of the European Convention on Human Rights.  

They wrote to the Government earlier this year regarding the third-party harassment provision. Most specifically, they asked why the third-party harassment provisions did not contain ‘carve-outs’ or exemptions for overheard opinions. They raised the concern that Article 10 of the ECHR – freedom of expression – could be breached by the new third-party harassment rule if such opinions were deemed harassment. The Government’s answer was as follows. 

This has further been reiterated by the Fact sheet produced by the Government (found here).

Is overheard banter harassment?

Given the strength of that final clause from the Government’s guidance note, it’s clear that their intention is that overheard opinions/banter will not always be harassment and policing such opinions will not be part of the reasonable steps test an employer must complete. There may be occasions when opinions given in a certain way and a certain manner, perhaps with the knowledge of the effect it will have on those around, could be harassment. In those circumstances, employers will be required to step in and take reasonable steps to stop the behaviours. But it’s clear that employers are not required to generally “police” the private conversations of their tenants/contractors/service users, etc. 

How should employers prepare?

Michael Brownlee is a Solicitor and Libby Hubbard is a Professional Support Lawyer at Anthony Collins.