Harassment by Third Parties – Employment Rights Bill
Under current employment law, employers are not liable where a worker they engage suffers harassment from a third party. This is even when it is in the course of their work. The Employment Rights Bill (“the Bill”) will change this significantly.
Almost every employer in scope…
A major change, that will be implemented by the Bill, will be to make employers potentially liable for third party harassment, if it permits a third party to harass a worker. Before going into detail, this means that employment agencies, umbrella companies, and employers must prepare for new laws. This is important for workers who interact with third parties, like clients or suppliers.
Protecting Workers
Almost every employer will need to take action to protect their workers from harassment by these third parties. The simple defence of the fact that the harassment was prosecuted by a third party will no longer be available.
What is meant by permit?
The Bill makes employers potentially liable for third party harassment if it permits a third party to harass a worker. What constitutes permitting third party harassment can be distilled into two broad points:
- the worker is harassed in the course of their employment; and
- the employer fails to take all reasonable steps to prevent the third party from doing so.
Defining “In the Course of Employment” and “All Reasonable Steps”
The scope of the legislation will, to a large extent, be determined by what constitutes “in the course of employment” and “all reasonable steps.”’ These are broad concepts that require a considered and tailored approach. The extent of this change, and the others in the Bill mean that bespoke documentation has never been more important, because “all reasonable steps” will differ depending on the organisation.
All reasonable steps…
The concept of all reasonable steps will not be the same for every situation and every employer. Careful consideration of an employer’s own circumstances and acting within those parameters is critical.
Example of Reasonable Steps
For example, all reasonable steps will differ depending on various factors such as:
- The size and resources of the employer
- The nature of the working environment
- The type and frequency of contact with third parties and any relevant regulatory standards.
These are just a few of the relevant factors that employers should consider to ensure protection from the legislation.
What steps should employers be taking?
The first point to note is that taking all reasonable steps will require an ongoing and evolutionary process. This will require continual monitoring, training and evaluation.
Anti-Harassment Policy
The first step will be to develop an effective anti-harassment policy. This policy will need to successfully incorporate the employer’s specific contextual factors.
Reporting & Training
Beyond this, the employer will need to create an effective reporting, training and evaluation process.
How Chartergates can help…
Our expertise lies not only in advice and drafting on employment law matters, which is essential with the coming Bill, but also in representation. This means that the advice and drafting we do for our clients is formulated based on our experiences in the tribunals where concepts like all reasonable steps are evaluated. Furthermore, it means that our clients know that if they are bound for a tribunal then they have the option to call on us to stand by our advice in that tribunal with them.
The Bill will change the face of employment law, and we are here to guide our clients through it. Contact us
Frequently Asked Questions: Harassment by Third Parties – Employment Rights Bill
What is third party harassment?
Third party harassment happens when someone who is not an employee—such as a client, customer, supplier, or contractor—harasses a worker during the course of their job. Until now, employers did not carry legal responsibility for this behaviour. The new Bill changes that.
How does the Employment Rights Bill change employer responsibilities?
The Bill makes employers potentially liable if they allow third party harassment to occur. If a worker experiences harassment “in the course of their employment” and the employer fails to take “all reasonable steps” to prevent it, the employer may face legal consequences.
Who needs to take action under the new law?
Nearly all employers who engage workers—such as employment agencies, umbrella companies, and businesses with client-facing roles—must act. If your workers interact with third parties, the Bill applies to your organisation.
What does “in the course of employment” mean?
This term refers to situations where the harassment occurs while the worker is carrying out their job duties. The exact interpretation may vary depending on the context, so each employer must review how their workers engage with third parties.
What counts as “all reasonable steps”?
“All reasonable steps” depends on your organisation’s size, structure, and the nature of its operations. Key factors include:
- Available resources
- Workplace environment
- Frequency and type of third-party contact
- Any applicable regulatory obligations
There’s no one-size-fits-all checklist—employers must assess their specific situation carefully.
What actions should employers take now?
Employers should:
- Draft or update a clear anti-harassment policy
- Train all staff on recognising and reporting third party harassment
- Put a reliable reporting mechanism in place
- Regularly review procedures and adapt to evolving risks
Proactive and continuous effort will demonstrate that you are taking “all reasonable steps.”
Why does documentation matter so much now?
Tailored documentation helps show that your business has assessed risks and taken appropriate action. It provides the foundation for your defence if harassment occurs and helps align your internal processes with the law’s expectations.
How can Chartergates support my business?
We provide bespoke legal advice, policy drafting, and representation. Our experience in tribunals means we understand how these legal standards play out in practice. We don’t just advise from a distance—we support our clients throughout the process, including during any tribunal proceedings.
