Your Sexual Harassment Policy Probably Is Not Doing What You Think It Is
If you have a sexual harassment policy somewhere on file, you might assume that covers you.
From October 2026, it will not.
The standard is changing. And for a lot of small businesses, the gap between where they are now and where they need to be is bigger than they realise.
A quick look at how we got here
The law around sexual harassment in the workplace has been tightening steadily over the past few years.
Before 2023, employers could generally point to a policy they had in place as a defence under the Equality Act 2010. That was considered enough.
In 2024, the Worker Protection Act introduced a proactive duty for employers to take reasonable steps to prevent sexual harassment. A passive policy was no longer sufficient on its own.
From October 2026, that standard moves again. Employers will now need to evidence that they took all reasonable steps to prevent harassment, not just reasonable steps.
That shift in language matters significantly in practice.
What the new rules actually say
The move from reasonable steps to all reasonable steps raises the bar for every employer.
It also introduces something that many small businesses have not yet considered. From October 2026, employers can be held liable for third party harassment. If a client, customer or contractor harasses one of your employees and you cannot show that you took steps to prevent it, you can be held responsible.
Think about your client-facing staff. Anyone working at events, in hospitality, in sales, on client sites or dealing with the public regularly.
Those environments now carry genuine legal exposure if the risk has not been assessed and addressed.
What all reasonable steps actually means for your business
This is what you need to have in place before October 2026:
- A clear, current policy that staff have actually read and formally acknowledged
- Managers who have been trained and know exactly what to do when something is reported
- Visible and accessible reporting routes that employees genuinely know about
- A written risk assessment covering the specific risks in your business, particularly where staff interact with people outside your organisation
- Evidence of the action taken based on that assessment
That last point is where most businesses will fall short. A risk assessment that sits in a folder and changes nothing will not help you if a claim lands.
What it could cost you
Tribunals can add a 25% uplift to compensation where an employer has not met the preventative duty.
That uplift sits on top of the underlying award. If the harassment itself results in a significant claim, the additional 25% adds up quickly.
A quick checklist before October 2026
Work through these and see where you land:
- Is your policy up to date and does it specifically cover third party harassment?
- Do you have a record of staff reading and acknowledging it?
- Have your managers had actual training on recognising and handling harassment reports?
- Is there a documented reporting process that employees know how to use?
- Have you completed a written risk assessment for higher risk roles or environments?
- Could you pull all of that evidence together quickly if you needed to?
If any of those answers is no or not sure, there is work to do before October.
How we can support you
We carry out sexual harassment prevention audits that assess where your business sits against the all reasonable steps standard.
The audit covers your policy, your reporting process and your risk exposure in third party environments. We also deliver the manager training your team needs so that when something is reported, it is handled correctly from the start.
If you want to get this sorted before October 2026, get in touch. We are happy to talk through what it looks like for your business.
Get in touch for a confidential chat today.
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info@hrtoolbox.co.uk
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