Sexual harassment and general allegations of inappropriate behaviour in the workplace never seem to be far from the news headlines these days. It doesn’t have to be high-profile allegations against a ‘celebrity’ such as those recently levelled at Gregg Wallace or Mohammed Al Fayed for employers to take action. Regardless of the size or profile of the organisation, recent updates to Sexual Harassment Laws mean that, since October this year, it is the responsibility of the employer to take proactive steps to prevent sexual harassment in their workplaces.

Quick Summary of Sexual harrassment laws for SMEs

The Worker Protection (Amendment of Equality Act 2010) Act 2023 mandates that employers take active steps to prevent sexual harassment in the workplace.

This includes implementing clear anti-harassment policies, providing regular training, establishing confidential reporting mechanisms, and conducting regular risk assessments. By taking proactive steps to prevent harassment, businesses can create a safer, more respectful workplace while reducing legal risks and fostering a positive work culture.

The Worker Protection (Amendment of Equality Act 2010) Act 2023 (the “Act”), which received Royal Assent on 26 October 2023 and came into force in October 2024, introduces significant changes to how workplace sexual harassment is handled under UK law. The new provisions impose a duty on employers to enforce sexual harassment laws by taking proactive steps to prevent sexual harassment in their workplaces. While this legal change applies to all businesses, it holds particular relevance for small and medium-sized enterprises (SMEs), which often operate with fewer resources but still face the same legal obligations. The transition to comply with these new rules may appear challenging, but with the right knowledge and planning, SMEs can not only meet the legal requirements but also create a safer and more inclusive work environment.

The central tenet of the Worker Protection Act is the requirement for employers to prevent sexual harassment by implementing clear, effective, and continuous measures. This includes developing anti-harassment policies, conducting regular training, establishing confidential reporting mechanisms, and assessing and managing risks in the workplace. Moreover, employers must respond swiftly to any harassment complaints and take the necessary actions to protect employees. Failure to comply with these duties can result in increased compensation awards for affected employees in the case of legal claims.

For SMEs, these new sexual harassment laws may seem daunting at first, but they present an opportunity to improve workplace culture and ensure the wellbeing of employees. By addressing the issue of harassment proactively, small and medium-sized businesses can foster a more supportive environment and protect themselves from potential legal consequences.

One of the first steps that SMEs can take to comply with the sexual harassment laws is to develop a comprehensive anti-harassment policy. This policy should be clear, specific, and easily accessible to all employees. For example, a small marketing agency might include language in their policy that defines sexual harassment and outlines the consequences of engaging in such behaviour. The policy should detail the process for reporting harassment and specify the actions the company will take in response. By setting clear expectations from the outset, employers can help ensure that all employees understand what constitutes unacceptable behaviour and what the company will do to address it.

Alongside a formal policy, it is essential that SMEs engage their employees in creating a workplace culture of respect and inclusion. This can be achieved through open discussions, feedback sessions, and by offering workshops that address issues such as diversity, equality, and respect. For instance, an accounting firm might hold quarterly workshops where employees have the opportunity to discuss workplace behaviour and raise concerns about the work environment. These discussions provide a platform for employees to voice their opinions and contribute to shaping the company’s approach to harassment. The key is to encourage employees to take ownership of the company’s culture and make them feel empowered to speak out if they witness or experience harassment.

In addition to fostering an open and inclusive culture, SMEs must also conduct regular risk assessments to identify and address potential vulnerabilities within the workplace. For example, a local bakery might recognise that due to its predominantly female workforce and high levels of customer interaction, there is an increased risk of gender-based harassment. In response, the management might implement strategies such as offering training to staff on appropriate conduct with customers, providing a safe space for employees to report concerns, and establishing a clear process for dealing with any incidents. Regular risk assessments allow businesses to be proactive rather than reactive, helping them stay one step ahead of potential issues.

Equally important is the establishment of clear and confidential reporting systems. SMEs must ensure that their employees have access to multiple avenues for reporting harassment, whether that be through a confidential hotline, an anonymous digital reporting tool, or a trusted HR representative. The goal is to create a system where employees can report incidents safely, knowing that their concerns will be taken seriously and addressed appropriately. For example, a small tech startup might introduce an anonymous online tool where employees can report incidents of harassment without fear of retribution. This system can help ensure that harassment cases are handled discreetly and efficiently while protecting the identity of those involved.

Furthermore, SMEs must provide regular training for employees to help them identify and prevent sexual harassment. This training should not be a one-time event but rather an ongoing process that reinforces the company’s commitment to creating a safe environment. A family-run construction business, for instance, might offer annual workshops on topics such as bystander intervention, unconscious bias, and appropriate workplace behaviour. This training should be tailored to the specific needs of the company and the types of interactions that employees have in their roles. By educating staff regularly, employers can ensure that everyone is aware of the company’s policies and understands their role in maintaining a harassment-free workplace.

In addition to training, SMEs must ensure that any complaints of harassment are handled effectively and in a timely manner. When a harassment complaint is raised, it should be investigated promptly and impartially, with all parties involved being given the opportunity to present their side of the story. The company must then take appropriate action to resolve the issue, which could range from offering counselling to the victim, implementing temporary changes to work arrangements, or, in more severe cases, taking disciplinary action against the perpetrator. For example, a small consultancy that receives a harassment complaint might initiate an independent investigation to ensure that the matter is handled impartially. The outcome should be communicated clearly to all involved parties, and support should be provided to both the victim and the accused during the process.

The importance of a proactive approach to preventing sexual harassment cannot be overstated. SMEs that take these steps not only ensure compliance with the new law but also foster a positive and supportive workplace culture. A workplace where employees feel respected and valued is one where they are more likely to perform at their best, which ultimately benefits the business. Furthermore, by addressing harassment head-on, SMEs reduce their risk of costly legal claims and enhance their reputation as an employer of choice.

Ultimately, the Act offers an opportunity for SMEs to review their workplace practices and make meaningful changes that will benefit both their employees and their business. By implementing clear anti-harassment policies, engaging employees, providing training, establishing reporting systems, and responding swiftly to complaints, SMEs can create a workplace environment where all individuals feel safe, respected, and able to thrive.

For further guidance, businesses can refer to resources such as the Equality and Human Rights Commission’s checklist for preventing sexual harassment at work, which provides a detailed action plan tailored to the needs of employers, especially those operating with limited resources.

While the new sexual harassment laws may initially seem like a challenge for SMEs, it presents an important opportunity to strengthen workplace culture, reduce risk, and ensure the safety and wellbeing of all employees. By embracing these changes, small and medium-sized enterprises can create a positive, harassment-free workplace that attracts and retains the best talent, fosters innovation, and ultimately supports business success.

Top 10 Tips for SMEs Compliance

  1. Develop a Clear Anti-Harassment Policy: Define what constitutes harassment and outline the consequences.
  2. Communicate the Policy to All Employees: Ensure all staff are aware of the policy and its contents.
  3. Conduct Regular Training: Offer training to employees to help them understand and prevent harassment.
  4. Establish Confidential Reporting Channels: Create safe avenues for employees to report harassment without fear of retaliation.
  5. Encourage Open Dialogue: Foster an inclusive culture where employees feel comfortable discussing concerns.
  6. Conduct Regular Risk Assessments: Identify and address potential harassment risks in the workplace.
  7. Respond Swiftly to Complaints: Address harassment complaints promptly and impartially.
  8. Provide Support to Affected Employees: Offer counselling or reassignment if needed.
  9. Monitor Effectiveness: Regularly evaluate the effectiveness of your harassment prevention efforts.
  10. Lead by Example: Ensure management models appropriate behaviour and supports anti-harassment policies.

These steps not only ensure compliance with sexual harassment laws but also help create a respectful, harassment-free workplace that benefits both employees and the business.