With several high-profile cases of sexual harassment in the workplace currently hitting headlines, RSM UK says firms should take all possible measures to protect workers and ensure compliance with the Worker Protection Act.
The new Act includes a mandatory legal duty for all employers to take reasonable and proactive steps to prevent sexual harassment of their employees. Breach of this could see employees claiming unlimited compensation at employment tribunals and enforcement action from the Equality and Human Rights Commission (EHRC). Updated workplace sexual harassment guidance published on September 26th by the EHRC emphasises that workplaces must be proactive in assessing risk, identifying action and regularly reviewing processes.
Charlie Barnes, head of employment legal services at RSM UK, says: “It’s imperative that employers are fully aware of the new law and take their responsibility to protect employees seriously. Sexual harassment is extremely distressing, and no business wants its employees to suffer in this way. For the employers, if sexual harassment is found to be endemic and widespread, this has serious legal, financial and reputational implications. It’s in everyone’s best interests to ensure that the necessary steps are taken now to eradicate it.”
The issue has been found to be 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 in March 2024* 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 consider the following to prepare for the new law:
- Undertake a risk assessment of areas and practices of the organisation where employees may be exposed to risks of sexual harassment
- 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.
Last year the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) conducted a joint consultation on improving diversity and inclusion in the sector, which included non-financial issues such as sexual misconduct and bullying. The consultation clarified expectations around non-financial misconduct, which will inform staff assessments, rules on conduct, and suitability criteria to operate in the financial sector. These new rules may come into effect before the end of this year.