With just weeks to go before the introduction of new sexual harassment prevention laws on October 26, employers are being urged to act swiftly.
As several high-profile workplace harassment cases continue to make headlines, RSM UK warns that businesses must take all necessary steps to protect employees and ensure compliance with the Worker Protection Act.
The new legislation mandates employers to proactively prevent sexual harassment in the workplace. Failure to do so could result in unlimited compensation claims from employees at employment tribunals, along with enforcement action from the Equality and Human Rights Commission (EHRC). The EHRC’s updated sexual harassment guidance, released on September 26, underscores the importance of assessing risks, taking preventative action, and regularly reviewing workplace policies.
Charlie Barnes, head of employment legal services at RSM UK, emphasised the importance of employer responsibility: “It’s imperative that employers are fully aware of the new law and take their responsibility to protect employees seriously. Sexual harassment is extremely distressing, and no business wants its employees to suffer in this way. For the employers, if sexual harassment is found to be endemic and widespread, this has serious legal, financial, and reputational implications. It’s in everyone’s best interests to ensure that the necessary steps are taken now to eradicate it.”
The issue is particularly acute in the financial services sector, where the Financial Conduct Authority (FCA) is cracking down on misconduct. A Treasury Committee report from March 2024, titled Sexism in the City, revealed that harassment in the industry ranges from microaggressions, such as exclusion from meetings and inappropriate comments, to criminal acts including assault and rape.
To help businesses prepare for the new laws, RSM UK advises employers to:
- Conduct a risk assessment to identify areas where employees may be vulnerable to harassment.
- Create a culture that encourages victims to speak out, offering confidential reporting channels without fear of retaliation.
- Establish a formal process for investigating harassment claims and taking necessary action.
- Review and update harassment policies to ensure legal compliance and effectiveness.
- Train all staff, including HR and line managers, to recognise harassment and handle complaints appropriately.
- Seek professional guidance to ensure compliance with the new legal requirements and regulatory expectations.
Last year, the FCA and Prudential Regulation Authority (PRA) launched a joint consultation aimed at improving diversity and inclusion in the financial sector, addressing non-financial issues like sexual misconduct and bullying. These guidelines, expected to come into effect by year’s end, will further shape conduct standards and criteria for working in the financial industry.
With the new Worker Protection Act imminent, businesses must act quickly to align with the legislation and protect their workforce from harassment.
Amelia Brand is the Editor for HRreview, and host of the HR in Review podcast series. With a Master’s degree in Legal and Political Theory, her particular interests within HR include employment law, DE&I, and wellbeing within the workplace. Prior to working with HRreview, Amelia was Sub-Editor of a magazine, and Editor of the Environmental Justice Project at University College London, writing and overseeing articles into UCL’s weekly newsletter. Her previous academic work has focused on philosophy, politics and law, with a special focus on how artificial intelligence will feature in the future.