Workplace harassment claims can expose employers to significant financial liability, reputational damage and operational disruption. Under the Equality Act 2010, harassment related to a protected characteristic is unlawful, and employers can be held vicariously liable for the actions of their employees, even if senior management were unaware of the conduct.
Understanding your legal position and responding strategically from the outset is critical. Early advice can often prevent escalation and significantly reduce risk.
Understanding Harassment Under the Equality Act 2010
In England and Wales, harassment is defined under section 26 of the Equality Act 2010 as unwanted conduct related to a relevant protected characteristic that has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment.
Protected characteristics include age, disability, gender reassignment, race, religion or belief, sex and sexual orientation.
There is also specific protection against sexual harassment, and against less favourable treatment because an individual rejects or submits to sexual harassment.
It is important to distinguish between unlawful harassment and general workplace conflict. Not all unpleasant behaviour amounts to unlawful harassment. The conduct must relate to a protected characteristic. However, poor handling of workplace grievances can transform internal issues into legal claims.
Employment Tribunal claims for harassment must generally be brought within three months less one day from the date of the last alleged act. Before issuing proceedings, claimants must engage in ACAS Early Conciliation.
Employer Liability and the Reasonable Steps Defence
Employers are usually vicariously liable for acts of harassment committed by employees in the course of employment. This includes conduct occurring at work related events, on business trips and in some circumstances on social media.
However, an employer has a statutory defence if it can show that it took all reasonable steps to prevent the employee from carrying out the discriminatory act or from doing anything of that description.
This reasonable steps defence is central to defending harassment claims. Tribunals assess whether the employer had effective policies, training and enforcement mechanisms in place.
Practical measures that strengthen a defence include:
• A clear and up to date anti harassment policy
• Regular equality and diversity training for all staff
• Specific training for managers on handling complaints
• Prompt and impartial investigations into allegations
• Consistent disciplinary action where misconduct is proven
Merely having a policy is not sufficient. Employers must demonstrate that policies are actively implemented and enforced.
Recent legislative developments have strengthened the emphasis on proactive prevention of sexual harassment. Employers are expected to take reasonable preventative steps, not simply respond after misconduct occurs.
Responding to a Harassment Allegation
When a complaint is raised, how the employer responds can significantly affect the outcome of any future Tribunal claim.
The first priority is to assess the seriousness of the allegations and ensure that appropriate interim measures are considered. This may include temporary changes to reporting lines or suspension where justified.
An impartial investigation must then be conducted. The investigator should gather evidence, interview relevant witnesses and review documentation such as emails or messages. The investigation must be fair and thorough. Predetermined conclusions or inadequate enquiries are frequently criticised by Tribunals.
If the grievance is upheld, appropriate disciplinary action should follow in accordance with the company’s procedures and the ACAS Code of Practice on Disciplinary and Grievance Procedures.
If the grievance is not upheld, the reasoning must be clearly documented and communicated.
Where a Tribunal claim is issued, employers must file a response within the prescribed deadline. Failure to respond in time can result in a default judgment.
Compensation in harassment cases can include injury to feelings awards assessed by reference to Vento guidelines, financial loss and in some cases aggravated damages. There is no statutory cap on compensation in discrimination claims.
Early legal advice allows employers to assess prospects of success, consider settlement options and ensure compliance with procedural requirements.
Protecting Your Business and Reputation
Defending a harassment claim requires more than legal technicality. It requires strategic risk management.
A well prepared employer can often resolve disputes at an early stage through structured negotiation or mediation. Where litigation proceeds, a robust defence grounded in evidence and compliance significantly improves outcomes.
Beyond individual claims, employers should treat allegations as an opportunity to review workplace culture, strengthen compliance systems and reduce future risk.
Penerley advises employers across England and Wales on defending harassment claims, conducting workplace investigations and implementing preventative policies. If your business is facing a harassment allegation or Employment Tribunal claim, contact our employment law team today for immediate, strategic advice designed to protect your organisation and your reputation.
