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Half of businesses unclear on new sexual harassment laws – HR Dept

One in three (33%) said they are not prepared for the changes, which start in October 2026.

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Half of businesses unclear on new sexual harassment laws – HR Dept
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Google searches for workplace sexual harassment rose by over 10 times in the UK after new laws were announced, according to The HR Dept. 

Research found nearly half (45%) of business owners and decision makers do not understand the upcoming changes to sexual harassment rules in the Employment Rights Bill. 

One in three (33%) said they are not prepared for the changes, which start in October 2026.

Searches for ‘third-party harassment’ increased by 1082%, and ‘workplace sexual harassment’ rose by 113% since October 2024. 

The new rules mean employers must take all reasonable steps to prevent sexual harassment, and can be liable after just one incident involving third parties.

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Some business leaders called the changes ‘unworkable’ and ‘more red tape’. 

Nicola Morrison (pictured), director of the HR Dept Leicester & North West Leicestershire, said: “The new laws are an evolution of what good HR is already advocating. 

“We cannot escape the reality that 40% of women and 18% of men have experienced unwanted sexual behaviour at work. 

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“The law is simply forcing a necessary shift from a reactive approach – waiting for a report of misconduct – to a proactive prevention strategy that reflects modern expectations around company accountability.”

Most complaints focused on cost, with 72% saying the Bill will have negative financial consequences and training is an unnecessary expense. 

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Morrison added: “Preventative e-learning costs as little as £2.50 per person. 

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“When you weigh that against a potential tribunal payout, which can be £6,000-£20,000 with a 25% uplift, the financial case for proactive investment is clear and delivers one of the highest returns on investment in HR.”

36% of businesses did not implement changes in response to previous, simpler guidelines. 

Nearly half (49%) of business leaders are unsure or believe their organisation is vulnerable to third-party harassment claims. 

Morrison said: “Whilst there is no legal definition of ‘reasonable’, there are clear steps that businesses can take to demonstrate their duty to meet this standard: establishing a zero-tolerance policy for harassment, creating a clear escalation route for reports, and implementing manager training so they can spot signs and intervene professionally. 

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“Businesses must record and evidence these steps, as that documentation will act as primary compliance defence.

“Size matters. Small businesses often lack dedicated HR resources, making compliance harder. 

Morrison added: “But risk is also heightened in sectors with high public contact or isolated working conditions. 

“This means hospitality, retail, transport, and logistics are especially vulnerable to claims arising from third-party harassment, where unpredictable customer behaviour increases the risk profile.”

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