Employers Liability for Third Party Harassment Made by Headliner

Why It Matters

The new prevention duty creates direct legal exposure for employers, forcing them to adopt proactive risk‑management practices or face costly claims and reputational damage.

Key Takeaways

• New employer duty to prevent third‑party harassment starts Oct 2026.
• Liability arises if reasonable steps to stop harassment are not taken.
• Risk assessments must consider employee exposure and sector‑specific threats.
• Generic policies and outdated training will not satisfy the new duty.
• Consistent manager training and reporting systems are essential for compliance.

Summary

The episode focuses on the upcoming Employment Rights Act 2025 provision that imposes a legal duty on employers to prevent third‑party harassment of employees, taking effect in October 2026. Allison Collie explains that, unlike today’s framework, the new rule will hold employers accountable if they fail to take all reasonable steps to stop harassment by customers, contractors or other external persons.

She traces the evolution of liability, from the 1996 Burton v Devere Hotels (Bernard Manning) case through the brief three‑strike rule under the Equality Act 2010, to the current gap that the 2025 amendment will fill. Under the Equality Act, harassment is defined by conduct related to protected characteristics that creates a hostile environment, and the new duty extends this liability to third parties when employers have not acted reasonably. Reasonable steps are not yet codified, but will depend on factors such as company size, risk profile and foreseeability.

Collie illustrates the practical challenges with examples like the “Finchy” sales rep and delivery personnel, urging employers to map out who could pose a risk. She warns that merely having a generic equality policy or outdated training will not satisfy tribunals; instead, a culture of safety, consistent manager response, and clear reporting mechanisms are crucial. Real‑world tactics include sector‑specific risk assessments, visible conduct notices, scripted response protocols, and regular, refreshed manager training.

The implications are clear: businesses must proactively assess third‑party exposure, update policies, implement robust training and reporting systems, and monitor compliance continuously. Failure to do so could result in direct liability, costly tribunal claims, and reputational harm, making the new duty a strategic priority for HR and risk‑management teams.

Original Description

In this episode 260 of the employment law and HR podcast, I bring you a run down of the new law coming in October 2026 which provides a legal duty on employers to prevent harassment of employees by third parties and provides for employer liability for the actions of third parties towards their employees.

In this episode we cover:

The background to third party harassment law including the case that started it all, the ‘Bernard Manning’ case.

The law on harassment currently.

What the new law says about third party harassment.

When third party harassment may arise.

What steps employers need to take.

Why you need to take action now.

Legal liability for employers.

Why you need to start considering who your ‘Finchy’ from the Office is!

Key takeaway:

Employers need to start taking action now to assess and identify the risks of third party harassment.

In order to take the necessary steps and ensure everything is in place by October 2026 you need to act now.

Don’t forget to subscribe to the podcast to stay informed on the latest in UK employment law. If you have questions or need tailored advice, feel free to get in touch – we are here to help.

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