Since 30 October 2026, employers can be held responsible when customers, clients or other third parties harass their staff. This is third party harassment, and the law now allows employees to bring a tribunal claim against their employer if it did not do enough to prevent it.
This article explains what has changed, who it affects and what employers should do now. It matters most for employers whose staff deal with the public or work on client sites, from pubs and shops to schools, clinics and care providers. If your business needs advice, our employment law solicitors can help.
What counts as third party harassment?
A third party is anyone who is not part of your business or one of your own employees. That includes customers, clients, patients, service users, suppliers’ staff and members of the public.
The new duty covers every form of harassment under section 26 of the Equality Act 2010. It applies to online interactions as well as face-to-face. A parent who racially abuses a teacher is caught. So is a client who mocks a worker’s disability.
What has changed in the law?
Section 21 of the Employment Rights Act 2025 adds new wording to section 40 of the Equality Act 2010. An employer must not permit a third party to harass an employee.
An employer permits harassment if two things are true. The harassment happens in the course of the employee’s employment, and the employer did not take all reasonable steps to prevent it.
What does “all reasonable steps” mean?
The test is all reasonable steps, not just some. Tribunals already use the same test when deciding whether an employer is responsible for harassment by its own staff, and the case law is strict. Two points stand out:
- An employer may be expected to take a step even if it would not have stopped the harassment
- Out-of-date training and a policy nobody reads will not be enough
Is there an exception for overheard remarks or opinions?
No. Concerns were raised about this while the Bill went through Parliament, but the Act contains no exception for overheard conversations or the expression of opinions.
The government’s position is that a step which would interfere disproportionately with a third party’s freedom of expression is not a reasonable step. We expect this to be tested, particularly in the context of pubs, bars and restaurants.
Is the risk higher for sexual harassment?
Yes. Employers must also take all reasonable steps to prevent sexual harassment under section 40A of the Equality Act 2010. If a sexual harassment claim succeeds and the employer also breached that duty, a tribunal can increase compensation by up to 25%.
What should employers do now?
Start with these steps:
- Risk assess – Identify which third parties your staff deal with, and where the risks lie, such as lone working, late shifts, alcohol and client sites
- Give staff a clear way to report harassment, record every incident on a register which is reviewed regularly by senior managers
- Act on every report, because a warning, a ban or a change to staffing is evidence of reasonable steps
- Train staff and managers, and keep risk assessments and policies up to date
Doing nothing is evidence of the opposite. A written record of what you did, and when, will be your best defence if a claim is made.
How we can help
Laura Kearsley is a Partner in our Employment Law team. Laura has a strong reputation in all aspects of employment law, including Employment Tribunal litigation, discipline and grievance issues, and unfair and constructive unfair dismissal claims.
If you have any queries on the above subject, please contact Laura or another member of the team on 0800 024 1976 or via our online enquiry form for practical advice.
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