What does it mean for small businesses?

The Worker Protection (Amendment of Equality Act) Act 2023 introduces critical amendments to the Equality Act 2010 aimed at strengthening protections against sexual harassment in the workplace. This legislation places new obligations on employers, including small businesses, to prevent workplace harassment.

 Key points to know and implement:

1. Introduction of a Duty to Prevent Sexual Harassment

• The amendment creates a new preventative duty on employers to take all reasonable steps to prevent sexual harassment of their employees by both colleagues and third parties (such as clients or customers).
• Small businesses are now legally required to be proactive in addressing potential sexual harassment risks in the workplace, rather than simply responding after incidents occur.
• Compliance may include establishing clear anti-harassment policies, conducting regular staff training, and implementing reporting mechanisms. LBJ Consultants can support you with this and ensure you stay compliant. 

2. Third-Party Harassment Liability

• The act reintroduces employer liability for harassment by third parties. Previously, employers were not liable for harassment by clients, customers, or other third parties unless it happened more than once and the employer failed to take reasonable steps to prevent it.
• Now, employers can be held accountable if an employee experiences harassment by a third party at work, regardless of repetition.
• Small businesses, especially those with public-facing roles (such as retail, hospitality, and healthcare), should be especially mindful of this change, as they will need to ensure policies address third-party interactions.

3. Introduction of Fines and Enforcement Measures

• The Act empowers the Equality and Human Rights Commission (EHRC) and employment tribunals to issue fines of up to £20,000 for breaches of the new duty to prevent sexual harassment.
• This fine represents a significant risk for small businesses that may not have the resources for such penalties.
• As part of mitigating these risks, small businesses are advised to document their efforts to prevent harassment, such as keeping records of anti-harassment training and interventions taken when complaints arise.

4. Review and Update of Anti-Harassment Policies

• Small businesses must review existing anti-harassment policies or create new ones to ensure they address both internal and external harassment risks effectively.
• Policies should outline clear definitions of what constitutes sexual harassment, detail the reporting and complaint-handling procedures, and emphasise a zero-tolerance approach to harassment.

5. Employee Training and Awareness

• The Act emphasises the need for effective communication and training around harassment policies.
• Small businesses should aim to hold regular training sessions to raise awareness about sexual harassment, empower employees to recognise unacceptable behaviour, and instruct them on reporting procedures.
• Businesses can access online training resources or create cost-effective training solutions via LBJ Consultants.

6. Implementing Confidential Reporting Mechanisms

• Businesses should establish a confidential and accessible reporting system to make employees feel safe when reporting harassment.
• Anonymity options, designated harassment officers, or external reporting lines could help small businesses manage these responsibilities while safeguarding employee well-being.

Action for Small Businesses:

While the new legal requirements might feel challenging addressing them proactively should create a safer work environment. LBJ Consultants can support your business in implementing policies, training staff, and documenting all anti-harassment efforts to help comply with the new regulations and minimise legal risks.

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