The new laws governing sexual harassment in the workplace

Sexual harassment in the workplace – against employees and third parties – has been an issue for some time with countless cases being reported in the media, cases that have involved some high-profile individuals. Indeed, most recently there are allegations against the late Harrods owner, Mohamed Al-Fayed.

But beyond the famous, there are a multitude of instances elsewhere.

Back in February (2024), a Charlton-based mechanic was found to have sexually assaulted women at his garage. John Kirk, 58, touched the woman as she delivered car supplies to his business, JK Autos in June 2023. He was placed on the sex offender register for five years and ordered to attend 12 sessions with a sexual offences treatment officer, serve 120 hours of community service and pay £60 compensation to the victim, along with £400 in costs.

It doesn’t help that the automotive sector is highly male orientated. As a BBC report noted in May (2024), there were 21 women working in MoT centres across Northern Ireland and just six were vehicle inspectors – and that’s out of a workforce of 451. The report also detailed that, according to the Institute for the Motor Industry, about 81 percent of the automotive industry across the UK is male and 19 percent is female.

That’s bound to lead to the risk of allegations of sexual harassment or discrimination.

Of course, many employers will have a tried-and-tested approach to dealing with workplace sexual harassment. This is likely to involve staff training, the maintenance of up-to-date policy documentation, and an approach to ensuring issues are dealt with robustly when they arise.

Another option is for women to open garages specifically for women – to make female customers and colleagues feel safe. That’s what Zoe Cog, 25, from Manchester, did in August 2023 when she set up AutoCog.

However, regardless of employer actions, from 26 October, they will have a new duty under the Worker Protection (Amendment of Equality Act 2010) Act 2023 to take ‘reasonable steps’ to prevent the sexual harassment of staff at work. Those that fail to take such steps risk a compensation uplift of up to 25 percent in the event of a successful claim against them.

As an Equality and Human Rights Commission (EHRC) spokesman told CAT, “evidence shows that workplace sexual harassment remains widespread, often goes unreported, and is inadequately addressed by employers.”

The spokesman added that the EHRC considers the Act “an important part of protecting employees in the workplace” because it places “a proactive duty on employers to take all reasonable steps to prevent sexual harassment in the workplace.”

In anticipation of the new duty, employers will be wondering whether their existing approach to the management of workplace sexual harassment will be sufficient to comply. The answer is that in many cases, employers need to do more.

But determining what constitutes ‘reasonable steps’ for an employer will depend on individual circumstances.

For Gareth Edwards, a partner in the employment team at VWV, factors such as the employer’s size, the sector in which it operates, and the way it identifies and manages risks are all likely to be material. As he says, “to effectively prepare for the new duty, employers should reflect on their current sexual harassment strategy and make improvements where necessary.” He highly recommends making contemporaneous records to explain an employer’s strategy and approach over time as “this ensures that appropriate evidence can be presented to a tribunal in the event of a future claim.”

There is help coming from the EHRC which said, “to support employers, we are updating our technical guidance on sexual harassment to reflect the new duty.” This will be on its website at equalityhumanrights.com.

New mandatory duty

In overview, Edwards says that the Act introduces a mandatory duty on employers to take ‘reasonable steps’ to prevent sexual harassment of employees in the course of their employment. “The mandatory duty is a much broader duty than any other obligation existing under existing anti-harassment law; the question of what will constitute ‘reasonable steps’ for any individual employer merits careful consideration and will depend on factors such as the type of organisation and the harassment risks that are present at that workplace.”

Changing defence

Employers might be aware that under existing law, there is a potential defence available to employers facing harassment claims, where they can show they took ‘all reasonable steps’ to prevent the employee from carrying out the harassment. On this Edwards comments that “where the reasonable steps defence succeeds, the employer will escape liability, leaving the harasser potentially personally liable if they have been named as a respondent in the litigation.”

He adds, though, that “the new mandatory duty is different from the existing reasonable steps defence. The reasonable steps defence applies in a much narrower context, i.e. in demonstrating that an employer took necessary action to prevent a particular employee from displaying a particular behaviour.” He says that in contrast, the mandatory duty will apply on an organisation-wide basis to all employees and is likely to call into question the organisation’s culture and approach more generally.

Third-party harassment

Employers should note that although explicit third-party harassment provisions were removed from the Act, the new mandatory duty may still encompass a requirement to manage the risk of third-party harassment where relevant. Again, Edwards warns that the requirements of any given organisation will depend on the particular risk of staff being exposed to third-party harassment at work. As a result, he says that employers should “consider the risk of third-party harassment as part of the general requirement to comply with the mandatory duty.”

Enforcement

There are two ways the new mandatory duty will be enforced. Either the Employment Tribunal may apply a compensation uplift of up to 25 percent for breach of the mandatory duty in successful sexual harassment claims, or EHRC will be able to take direct enforcement action against employers who breach the mandatory duty.

On this the EHRC spokesman said “when the duty comes into force we will take enforcement action where necessary, including against companies who have failed to take reasonable steps to protect their employees from sexual harassment.”

In terms of the compensation uplift, to pursue an employer for breach of the mandatory duty, an employee will need to bring a successful harassment claim under the Equality Act. If that claim succeeds, Edwards says that a tribunal may apply the compensation uplift at an appropriate percentage to reflect the extent to which the employer has breached the mandatory duty.

As he cautions, “a tribunal may be likely to apply the compensation uplift precisely because, for the claim to succeed in the first place, the employer will either have failed to invoke the reasonable steps defence or will have been unsuccessful in doing so. If an employer has failed in the reasonable steps defence, it is likely to also fail to show that it has complied with the mandatory duty.”

In real terms, the practical impact of the mandatory duty is likely to be a compensation uplift of up to 25 percent in almost any successful sexual harassment claim. Given that sexual harassment is a claim for which a tribunal has the power to award unlimited compensation, a failure to comply with the mandatory duty could prove very costly.

And some of the awards have been huge: One case in 2015 saw the claimant awarded £3.2m and another, in 2023, £360,000. The new law could make those awards 25 percent more costly for employers.

In the event of a breach, the EHRC can issue notices to organisations in relation to their unlawful acts. A notice would require the organisation to prepare a draft action plan setting out how it will remedy its breach. The EHRC may approve the plan or require improvements to be made to it. The EHRC takes enforcement action against individual employers rarely but may do so in the event of serious breaches of equality law.

Summary

Change is coming and employers need to take notice and recognise their new duty. It is going to be enforced and employers that ignore the law could find themselves paying expensive awards made against them.

What the Autumn Budget means for the aftermarket

It’s easy to come away with a sense of relief that the Budget could have been a lot worse

Read More

How advertising standards affect the aftermarket

We break down everything you need to know about advertising – and staying on the right side of the law

Read More

The new laws governing sexual harassment in the workplace

Employers will be wondering whether their existing approach will be sufficient to comply. The answer is that they need to do more

Read More

Battery market to see rapid growth, say experts

The global demand for 12V battery technology will increase by 236 million batteries by 2040

Read More

Garage complaints: How to avoid hassle and swiftly resolve disputes

The Motor Ombudsman recently reported record volumes of service and repair case submissions – we break down why, and what to do if you face a complaint

Read More

Go to comments

Your email address will not be published. Required fields are marked *