New Sexual Harassment Rules: What Small Businesses Need to Do Now

From 30 October 2026, the law on workplace harassment is getting tougher. If you run a small business, this isn’t something to leave in the “later” pile. The good news is that compliance is very achievable with a few practical steps.

What’s changing?

Since October 2024, employers have had a legal duty to take “reasonable steps” to prevent sexual harassment at work. Under the Employment Rights Act 2025, that duty becomes a duty to take “all reasonable steps”. One small word with a big impact: doing some of the right things will no longer be enough.

Alongside this, two other changes matter:

• Third-party harassment: You’ll be liable if your staff are harassed by customers, clients, contractors or suppliers, unless you’ve taken all reasonable steps to prevent it. This covers all forms of harassment (race, disability, age and so on), not just sexual harassment, and staff can bring a claim on this alone.

• Whistleblowing protection: Since April 2026, workers who report sexual harassment are protected from being treated badly or dismissed for speaking up.

If a sexual harassment claim succeeds and you haven’t met the duty, a tribunal can increase compensation by up to 25%.

What should you do?

1. Carry out a risk assessment

Think about where harassment could happen in your business. Do staff work alone, late at night, or face the public? Is alcohol involved at events? Do employees visit client premises? Write down the risks and what you’ll do about each one, then review it regularly.

2. Update your policy

Have a clear, written anti-harassment policy that explains what harassment is, that it won’t be tolerated, how to report it (including an alternative contact if the problem involves a manager), and how complaints will be handled. Make sure it explicitly covers customers, clients and other third parties.

3. Train your team

Everyone should understand what harassment looks like and how to report it. Managers need extra training on handling complaints sensitively and promptly. Keep records of who’s been trained and when, and refresh it regularly.

4. Put up notices in public spaces

If your staff deal with the public, display signs in customer areas making clear that harassment or abuse of staff will not be tolerated. It’s simple, low-cost, and shows you’re taking third-party risk seriously.

5. Check your contracts

Add wording to supplier and client agreements setting out the behaviour you expect towards your staff.

6. Act on complaints

A policy is only as good as what happens when someone speaks up. Investigate fairly, support the person affected, and take action, including against customers where needed.

How Ena HR can help

We know small business owners are juggling a lot. At Ena HR, we can take this off your plate by helping you carry out your risk assessment, drafting or updating your anti-harassment policy, delivering practical staff and manager training, and supporting you if a complaint arises.

With the new rules in force from 30 October 2026, now’s the time to get ready. Get in touch with Ena HR today for a friendly, no-obligation chat about protecting your team and your business.