Charlie Barnes, head of employment legal services at RSM UK, says: “This year’s festivities will be a key time for many businesses to find out whether additional measures put in place to protect staff are actually working. With increasing legal responsibilities for staff safety and mounting financial pressures brought about by the recent Budget, some companies could decide to scrap the Christmas party altogether this year, as they may feel such events are becoming too risky, too difficult to manage and too costly.”
Breach of the new law could see employees claiming unlimited compensation at employment tribunals and the potential for reputational harm for the employer. Updated workplace sexual harassment guidance published last September by the Equality and Human Rights Commission emphasised that workplaces must be proactive in assessing risk, identifying action and regularly reviewing processes. Despite not currently being included in the legislation, the guidance strongly advises employers to consider third party harassment during this risk assessment.
Charlie Barnes continued: “Further responsibilities for the safety of others may also be on the horizon for employers. The Employment Rights Bill currently making its way through parliament places a greater responsibility on employers to take all reasonable steps and includes protection from acts by third parties such as customers, clients or suppliers who are invited to company events, attending company premises or are interacting with employees in other ways.”
Financial services firms should be particularly mindful of the new rules, as workplace sexual harassment is particularly prevalent in financial services, where the Financial Conduct Authority (FCA) is also clamping down. The Treasury Committee’s report, ‘Sexism in the City’ published this year reported: ‘forms of sexual harassment in financial services ranged from ‘microaggressions’ such as inappropriate comments and being excluded from meetings, through to criminal harassment, assault and rape.’
RSM UK recommends employers implement the following to make sure staff are protected and businesses remain legal and compliant:
- Undertake a risk assessment of areas and practices of the organisation where employees may be exposed to risks of sexual harassment. This includes external premises such as venues for staff parties and teambuilding events.
- Foster a culture where victims feel empowered to speak up, for example, providing a platform for them to report any incidents in confidence without fear of negative repercussions.
- Have a formal process in place to investigate any claims of sexual harassment made by employees and take appropriate action where necessary.
- Review sexual misconduct complaints policies and procedures to ensure they are legally compliant, accessible and effective.
- Provide training to HR, line managers and all employees to ensure that signs of sexual harassment are recognised, and they understand how complaints should be handled.
- Seek support from professional advisers to ensure the new legal obligations and regulators’ expectations are fully understood and complied with.
