Many employers are unaware that a significant change in employment law is about to increase their responsibility for protecting employees from harassment by customers, clients, suppliers, contractors and other third parties. From 30 October 2026, employers who fail to take adequate preventative action could find themselves facing Employment Tribunal claims, compensation awards, reputational damage and regulatory scrutiny. The law will require employers to take “all reasonable steps” to prevent third-party harassment of their employees.
The days of dismissing inappropriate customer behaviour as “part of the job” are rapidly coming to an end.
What Is Third-Party Harassment?
Third-party harassment occurs when an employee is subjected to unwanted conduct by someone who does not work for their employer.
This could include:
- Customers
- Clients
- Suppliers
- Contractors
- Consultants
- Visitors
- Members of the public
The harassment could be verbal, physical, online or non-verbal and may relate to a protected characteristic such as race, disability, religion or belief, age, sex, sexual orientation or gender reassignment. It also includes sexual harassment.
Why Should Employers Be Paying Attention?
Because the risk no longer sits solely with the individual who commits the harassment.
The law is shifting its focus onto employers and asking a critical question:
What did you do to prevent it?
From 30 October 2026, employers will be expected to take all reasonable steps to prevent third-party harassment. If an employee is subjected to harassment by a customer, client or other third party, and the employer cannot demonstrate that appropriate preventative measures were in place, they could face legal liability.
For many businesses, this represents a major change in risk exposure. Remember: If it’s not written down, or documented – it didn’t happen.
“But They Don’t Work For Us…”
This is often the first reaction from employers.
The reality is that the fact the harasser is not your employee may no longer protect your business.
Consider the following scenarios:
- A customer makes repeated sexist comments to a member of staff.
- A client directs racist remarks at an employee during a meeting.
- A contractor subjects a worker to unwanted sexual comments.
- A visitor repeatedly mocks an employee’s disability.
Employment Tribunal Claims
The key question may not be whether the conduct occurred. Instead, it could be whether the employer took reasonable steps to prevent it and acted appropriately once concerns were raised.
What Are the Risks to Businesses?
Employees who experience harassment may bring claims against their employer if appropriate preventative measures were not in place. Compensation in discrimination and harassment claims can be significant and, unlike unfair dismissal claims, is not subject to the same statutory compensation cap.
Reputational Damage
Employment Tribunal judgments are public. Allegations of workplace harassment can damage an organisation’s reputation with clients, customers, employees and prospective recruits.
Employee Relations Issues
Employees who feel unprotected are more likely to:
- Lose trust in management
- Take sickness absence
- Raise grievances
- Resign
Recruitment and Retention Challenges
In a competitive labour market, employees increasingly expect their employer to provide a safe and respectful working environment. Businesses that fail to do so may struggle to attract and retain talent.
What Does “All Reasonable Steps” Mean?
There is no strict checklist. It’s subjective. But doing nothing, will create and contribute to the very issues listed above.
What is considered reasonable will depend on factors such as:
- The size of the business
- The nature of the sector
- The level of public interaction employees have
- Previous incidents
- Available resources
However, employers should expect to demonstrate that they have actively considered the risks and taken meaningful steps to address them.
Five Steps Employers Should Take Now
1. Assess Your Risk
Consider where employees regularly interact with customers, clients or members of the public.
Particular attention should be paid to customer-facing roles, reception teams, hospitality staff, healthcare workers and professionals attending meetings or events.
2. Update Your Policies
Ensure bullying, harassment and dignity-at-work policies specifically address harassment by third parties.
3. Train Managers
Managers need to understand:
- How to recognise harassment
- How to deal with complaints
- How to intervene appropriately
- When escalation is required
4. Keep Records
Document incidents, investigations and actions taken.
A business with clear evidence of preventative measures will be in a much stronger position if a claim arises.
5. Make Expectations Clear
Consider introducing customer conduct statements, signage, contractual clauses and terms of business that state harassment of staff will not be tolerated.
The Bottom Line
The pace of change in employment law since the change of government has been significant, with new duties, enhanced employee protections and further reforms continuing to be introduced. For many employers, these changes are arriving incrementally, making it challenging to keep up with what is changing, what action is required and when compliance obligations take effect.
The new rules on third-party harassment are just one example of the increasing expectation being placed on employers to take proactive steps to protect their workforce. Yet many businesses simply do not have the time, internal expertise or dedicated HR resource needed to interpret the legal changes, assess the risks and implement practical measures across their organisation.
That’s where expert support can make all the difference.
At BHP Law, we understand that employers are navigating an increasingly complex and fast-moving legal landscape. Our role is not just to tell you what the law says, but to help you understand what it means for your business, identify the risks, and implement practical, proportionate measures that keep you compliant and protect your people.
Whether you need support reviewing policies, carrying out risk assessments, training managers, updating workplace procedures or understanding the latest employment law developments, our Employment Law team is here to help you make sense of the changes and confidently put the right protections in place.
If you’re unsure how these new obligations affect your business, now is the time to seek advice. Contact BHP Law’s Employment Law team either by email AnthonyW@bhplaw.co.uk or by phone 0800 590019 to discuss how we can help you stay ahead of the changes and ensure your organisation remains compliant.
