New sexual harassment rules may signal end of office parties 

The festive season is upon us, but businesses may need to rethink their approach to office Christmas parties following the introduction of stricter sexual harassment laws. The updated legislation, which came into effect in October, places a greater duty on employers to take reasonable steps to prevent sexual harassment in the workplace, including at social events.

As a result, legal experts warn that the new rules could spell the end of traditional alcohol-fuelled office celebrations, especially in sectors like financial services.

Miss Amy Cusworth, employment lawyer with Rotherham-based Firm Oxley & Coward Solicitors LLP highlights the impact on businesses. “With increasing legal responsibilities for staff safety, some companies may feel such events are becoming too risky, too difficult to manage and too costly.”

The new legal duty represents a significant shift in how employers must act to prevent sexual harassment. Previously, employers could defend themselves by demonstrating they had policies and procedures in place and had taken reasonable steps after an incident occurred. Now, businesses must take action to anticipate and prevent harassment, regardless of whether a complaint has been made.

Sexual harassment involves any unwanted sexual behaviour that causes someone to feel intimidated, degraded, humiliated, or offended, regardless of intent. This includes actions like inappropriate remarks about someone’s appearance, offensive jokes, unwelcome questions about personal matters, or non-consensual touching. It also extends to digital communication, such as unwanted messages, emails, or phone calls.

And the stakes are high for employers who fail to meet this new duty. If the Equality and Human Rights Commission (EHRC) receives a report that a business is not taking reasonable preventative steps, it can take enforcement action, even if no specific harassment claim has been made. Where a case proceeds to an employment tribunal, non-compliance could result in an increased compensation award of up to 25%.

In addition, businesses in high-risk industries may need to consider extra safeguards, such as in hospitality, where research has found more than half of women reporting workplace sexual harassment.  Measures could include ensuring employees never work alone, providing additional reporting channels beyond direct supervisors, and treating social events as extensions of the workplace.

Miss Amy Cusworth warns that “Waiting for something to happen is not an option: every employer needs to be able to show they have taken reasonable steps to prevent a situation arising.”

For employers, the message is clear: ignoring these risks could result in significant legal and reputational damage and simply scrapping social events like the Christmas party isn’t a solve-all action.  Instead, businesses need to mitigate risk by implementing clear policies, providing staff training, and promoting a culture of respect and inclusion, explains Miss Amy Cusworth:

“This legislative shift will be a wake-up call for many industries. Yes, festive gatherings can boost morale and foster team cohesion, but they must be carefully planned with an emphasis on safeguarding employee wellbeing.

“This is about looking at the bigger picture and taking action to foster a safe and respectful environment that protects both employees and the business.”

While the current legislation does not specifically allow for claims due to third-party sexual harassment, legal liability may arise if employers fail to act on inappropriate behaviour by clients or suppliers. Looking to the future, the Employment Rights Bill progressing through Parliament will increase employer responsibilities in this area.

What can be done to safeguard staff against sexual harassment:

• Implement a comprehensive sexual harassment policy that is clearly communicated.
• Conduct regular training for all staff on recognising and preventing harassment.
• Assess risks specific to industry and workplace.
• Foster a culture of transparency where employees feel comfortable speaking up.
• Establish clear reporting procedures and ensure all staff know what actions will follow any report.
• Communicate a zero-tolerance stance towards any form of harassment.

Please contact Oxley & Coward for more guidance and assistance: Solicitors Rotherham, South Yorkshire – Oxley and Coward / 01709 510 999