Workplace Harassment: Employer Liability, Duty & Claims 2026

Workplace harassment is a form of unlawful discrimination when it meets the legal test under the Equality Act 2010. Employers can be held liable for harassment carried out by employees in the course of employment unless they can show they took all reasonable steps to prevent it. Employers also have a specific statutory duty to take reasonable steps to prevent sexual harassment at work.

Where a worker can show they have been subjected to harassment at work, they may be able to bring a claim against their employer at the Employment Tribunal.

For employers, it is important to take action to manage the legal risk of harassment complaints in the workplace, which in turn will help to avoid associated issues of low workforce morale and poor staff retention.

Section A: What is workplace harassment?

Workplace harassment is a specific form of unlawful discrimination defined by section 26 of the Equality Act 2010. Although the term is often used informally to describe negative behaviour at work, its legal meaning is narrower and depends on a statutory test.

Under the Equality Act 2010, harassment occurs where there is unwanted conduct that is related to a protected characteristic and the conduct has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment.

All three elements must be considered. The conduct does not need to be intentional. Even if the perpetrator did not mean to offend, harassment may still arise where the effect of the conduct meets the statutory threshold. When assessing “effect”, a tribunal will consider the perception of the individual, the wider circumstances and whether it was reasonable for the conduct to have that effect.

This statutory framework distinguishes workplace harassment from general workplace conflict or poor management. The defining feature is the link to a protected characteristic.

1. Protected characteristics

A complaint about workplace harassment must relate to one of the protected characteristics prescribed by the Equality Act 2010. These are:

• Age
• Sex
• Disability
• Gender reassignment
• Marriage or civil partnership
• Pregnancy or maternity
• Race
• Religion or belief
• Sexual orientation

Marriage and civil partnership operates differently from other protected characteristics in discrimination law, and claims tend to arise most often in direct discrimination and victimisation contexts rather than harassment.

Protection under the legislation applies not only where the individual personally has the characteristic, but also where they are subjected to unwanted conduct because of association with someone who does, or because they are perceived to have that characteristic.

Harassment may consist of a single serious incident or a pattern of behaviour over time. It can occur face to face, in writing, by phone, through messaging platforms or on social media. Work-related social events, conferences and business travel can also fall within scope.

2. Types of harassment recognised by law

The Equality Act 2010 recognises three forms of harassment.

First, general harassment under section 26(1), involving unwanted conduct related to a protected characteristic that meets the purpose or effect test.

Second, sexual harassment under section 26(2), which covers unwanted conduct of a sexual nature. This includes unwelcome sexual advances, sexual comments, inappropriate touching, or other conduct that creates an offensive or hostile working environment.

Third, section 26(3) addresses less favourable treatment because an individual has rejected or submitted to unwanted sexual conduct. For example, disadvantaging a worker after they refuse sexual advances may amount to harassment even if no further conduct occurs.

These distinctions are legally significant when assessing employer liability and preventative obligations.

3. Harassment and bullying

In an employment law context, harassment and bullying are often discussed together but they are not interchangeable.

Harassment is unlawful where it meets the statutory test and relates to a protected characteristic. Bullying, as described in ACAS and HSE guidance, refers to offensive, intimidating or undermining behaviour that is not necessarily linked to a protected characteristic. There is no standalone statutory claim for bullying.

However, bullying may still expose employers to legal risk. Failure to address serious bullying may breach the implied term of mutual trust and confidence, potentially giving rise to a constructive dismissal claim or other employment-related claims.

Section B: When is an employer liable for workplace harassment?

Once conduct meets the statutory definition of workplace harassment under the Equality Act 2010, the next question is liability. In many cases, the individual who carried out the conduct is not the only party at risk. Employers can be held legally responsible for harassment committed by their employees, even where senior management had no prior knowledge of the behaviour. This exposure arises through the doctrine of vicarious liability.

1. Vicarious liability under the Equality Act 2010

Under section 109 of the Equality Act 2010, employers are responsible for discriminatory acts, including harassment, carried out by employees “in the course of employment”.

The phrase “in the course of employment” is interpreted broadly. It can extend beyond the physical workplace to include work-related social events, conferences, business trips and other situations sufficiently connected to employment. Conduct occurring at a Christmas party, team-building event or client function may therefore engage employer liability.

Liability may arise even where the employer did not authorise, condone or know about the conduct. The statutory framework places the burden on employers to show that they took appropriate preventative measures.

In addition, section 110 provides that individual employees who commit harassment can be personally liable. Claims are often brought against both the employer and the individual respondent.

2. The “all reasonable steps” defence

Section 109(4) of the Equality Act 2010 provides a defence where the employer can show it took all reasonable steps to prevent the employee from doing the discriminatory act. This is commonly referred to as the “all reasonable steps” defence.

This “all reasonable steps” defence is separate from the 2024 preventative duty, which is framed as ‘reasonable steps’ and applies specifically to sexual harassment.

The threshold is demanding. It is not enough to have a policy in place. Tribunals will examine whether there was an up-to-date anti-harassment policy, whether staff received regular and meaningful training, whether complaints were taken seriously and investigated properly, whether earlier incidents were addressed and whether senior leadership modelled appropriate behaviour.

A policy that exists only on paper, or training delivered years earlier without reinforcement, is unlikely to be sufficient. Employers must demonstrate active implementation.

The introduction of the proactive duty to take reasonable steps to prevent sexual harassment from 26 October 2024 has raised expectations in this area, particularly where sexual harassment allegations arise.

3. Burden of proof in harassment claims

Harassment claims in the Employment Tribunal are governed by section 136 of the Equality Act 2010, which establishes a burden-shifting mechanism.

Initially, the claimant must establish facts from which the tribunal could conclude that harassment occurred. If that threshold is met, the burden shifts to the respondent to prove it did not contravene the Equality Act 2010, which may include relying on the statutory defence where applicable.

As such, employers should assume that documentary evidence, investigation records and witness credibility will be scrutinised carefully. Inadequate investigation processes or poor record keeping can significantly weaken a defence.

Workers bringing claims are also protected from victimisation for raising complaints or giving evidence. Any detrimental treatment following a complaint may give rise to a separate and independent claim.

4. Who can bring a harassment claim?

Workers can only take legal action relating to workplace harassment if they qualify under the Equality Act 2010. This includes employees, workers, some self-employed individuals and certain job applicants. Former employees may also bring claims in relation to conduct arising out of the employment relationship.

There is no minimum length of service requirement to bring a harassment claim. Protection applies from day one.

Those who fall outside the Equality Act framework, such as volunteers in some circumstances, may consider alternative legal routes, including civil claims under the Protection from Harassment Act 1997. However, where the statutory definition under the Equality Act is met, compensation is uncapped and includes injury to feelings awards.

Section C: What is the 2024 duty to prevent sexual harassment?

Sexual harassment is a distinct and legally significant category of workplace harassment. Although it sits within the broader definition under section 26 of the Equality Act 2010, recent legislative reform has imposed additional preventative obligations on employers that go beyond the general liability framework. Failing to comply with the duty does not create a standalone tribunal claim, but it can affect remedies in a sexual harassment claim that succeeds.

From 26 October 2024, employers are under a statutory duty to take reasonable steps to prevent sexual harassment of workers in the course of their employment. The amendment, introduced by the Worker Protection (Amendment of Equality Act 2010) Act 2023, moves the focus from responding to complaints after the event to assessing and mitigating risk in advance.

In practice, risk assessments should include scenarios where workers interact with third parties such as clients, customers, patients, service users, contractors and event attendees. Sexual harassment risk often arises in front-line roles, hospitality settings, client entertainment, business travel and conferences, where the conduct may come from outside the workforce but still occurs in the course of employment. Employers should be able to evidence how these risks were identified and what preventative controls were put in place.

The preventative duty does not reintroduce the former third-party harassment provision, but current guidance treats third-party risk as a core area employers should address when taking reasonable steps.

1. What amounts to sexual harassment?

Under section 26(2) of the Equality Act 2010, sexual harassment occurs where there is unwanted conduct of a sexual nature that has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment.

The conduct must be sexual in nature. It can include unwelcome sexual advances, inappropriate physical contact, sexually suggestive remarks, intrusive questions about a person’s private life, or the display of sexually explicit material. As with other forms of harassment, intention is not decisive. A tribunal will examine both the purpose and the effect of the conduct, considering the individual’s perception, the wider context and whether it was reasonable for the conduct to have that effect.

Section 26(3) of the Equality Act provides further protection where an individual is treated less favourably because they rejected or submitted to unwanted sexual conduct. For example, altering a worker’s duties, denying opportunities or otherwise disadvantaging them because they refused sexual advances may amount to harassment even if no further conduct occurs.

For detailed analysis of the legal test and examples, see sexual harassment in the workplace.

2. The proactive duty to prevent sexual harassment

The 2024 reform introduces a proactive obligation requiring employers to take reasonable steps to prevent sexual harassment before it arises. The duty applies regardless of whether any complaint has been made.

Employers are expected to assess the specific risks within their organisation and implement preventative measures appropriate to their size, sector and working environment. A written policy alone is unlikely to be sufficient. Tribunals and regulators will consider whether preventative measures were genuinely embedded in practice. This may include examining whether anti-harassment policies were up to date, whether managers received meaningful training, whether reporting mechanisms were clear and accessible, and whether previous warning signs were acted upon.

The Equality and Human Rights Commission has issued updated guidance to assist employers in understanding how the duty operates in practice. While guidance does not replace statute, it is likely to influence tribunal assessment of what amounts to reasonable steps.

3. Compensation uplift and regulatory enforcement

Where a tribunal upholds a sexual harassment claim, it will consider whether the employer also contravened the statutory duty to take reasonable steps to prevent sexual harassment, and it has discretion to uplift compensation by up to 25%. This uplift applies in addition to any award for financial loss, injury to feelings or aggravated damages. The financial implications can therefore extend beyond the underlying harassment finding.

The Equality and Human Rights Commission also has the power to take enforcement action in relation to the new preventative duty. It may investigate organisations and require compliance steps, even in the absence of an individual claim.

Compliance with anti-sexual harassment duties is therefore twofold. There is potential tribunal liability in individual cases, and there is regulatory exposure where systemic prevention measures are inadequate. Employers who treat prevention as an ongoing governance obligation, supported by documented risk assessment and training, are better positioned to defend claims and mitigate financial uplift.

Section D: How do harassment claims work and what compensation can be awarded?

Where workplace harassment meets the statutory definition under the Equality Act 2010, an affected worker may bring a claim in the Employment Tribunal. Harassment claims sit within the broader discrimination framework and carry potentially significant financial and reputational consequences.

Understanding who can bring a claim, the procedural steps involved and the level of compensation available is central to assessing legal exposure.

1. Who can bring a workplace harassment claim?

Claims for workplace harassment may be brought by employees, workers, some self-employed individuals and certain job applicants. Former employees can also bring claims where the conduct arises out of and is closely connected to the employment relationship.

There is no minimum length of service requirement. Protection applies from day one of employment. A worker does not need to resign before bringing a harassment claim. If they remain employed, they are protected from victimisation for having raised concerns or given evidence.

Where an individual resigns because of harassment, a separate claim for constructive dismissal may also arise, provided the legal threshold is met. However, the discrimination claim itself does not depend on two years’ service.

2. Time limits and procedural steps

Tribunal claims under the Equality Act 2010 must generally be brought within three months less one day of the date of the act complained of. Where harassment forms part of a continuing course of conduct, the time limit may run from the last act in the series. Determining whether conduct amounts to a continuing act can be legally complex and is frequently contested.

Before issuing a tribunal claim, a claimant is required to notify ACAS and commence Early Conciliation. This process temporarily pauses the limitation period. However, internal grievance procedures do not automatically extend tribunal time limits. Workers and employers should therefore remain alert to limitation risk while internal processes are ongoing.

3. Compensation for workplace harassment

Compensation for workplace harassment under the Equality Act 2010 is uncapped. Awards may include financial losses such as lost earnings and pension contributions, together with compensation for injury to feelings.

Injury to feelings awards are commonly assessed by reference to the Vento guidelines, which divide awards into lower, middle and upper bands depending on severity. The Vento bands are updated periodically, so employers should check the current figures when assessing exposure.

More serious or prolonged harassment may fall within the upper band, while one-off or less severe incidents may fall within the lower band. In exceptional cases, awards may exceed the upper band range.

Aggravated damages may also be awarded where the employer’s conduct during the handling of the complaint has been particularly high-handed or oppressive.

In sexual harassment cases, if the tribunal concludes that the employer failed to take reasonable steps to prevent the conduct, compensation may be increased by up to 25 percent under the 2024 preventative duty framework.

Given the uncapped nature of discrimination awards and the reputational impact of findings of harassment, employers should treat complaints as a matter of significant legal risk rather than routine HR dispute.

Section E: What should an employer do when a harassment complaint is raised?

Workplace harassment claims rarely begin in the Employment Tribunal. Most arise from internal complaints that were poorly handled, inadequately investigated or dismissed without proper scrutiny. Effective complaint management therefore serves two purposes. It provides a fair process for the individuals involved and it protects the organisation’s legal position.

Employers should approach harassment complaints as potential discrimination claims from the outset, applying procedural fairness and maintaining clear records.

1. Encouraging reporting and early intervention

Bullying and harassment can have a serious impact on individuals and workplace culture. Employers should ensure that workers understand how concerns can be raised and who they can approach.

In many organisations, workers are encouraged to raise concerns informally in the first instance, often with a line manager. Where the complaint concerns that manager, alternative reporting routes should be available, such as HR or another senior manager. Accessible reporting channels are particularly important in light of the proactive duty to prevent sexual harassment.

Clear policies help establish expectations about behaviour and procedure. An up-to-date anti-harassment policy should define unacceptable conduct, explain how concerns will be handled and set out potential disciplinary consequences. Policies should align with the broader employment law framework and reflect the organisation’s statutory obligations.

2. Grievance procedures and investigation standards

Where a matter cannot be resolved informally, a formal complaint will usually proceed under the organisation’s grievance procedure. A worker may submit a grievance letter setting out the details of the alleged conduct, including dates, witnesses and supporting evidence.

Once a grievance is received, the employer should conduct a full and fair investigation. The investigation should be proportionate to the seriousness of the allegations and led by an individual who is impartial and appropriately senior. In smaller organisations, this may require engaging an external investigator to preserve objectivity.

A proper workplace investigation typically involves gathering documentary evidence, interviewing relevant witnesses and giving the respondent an opportunity to respond to the allegations. Findings should be documented clearly and supported by reasoning.

After the investigation, a grievance hearing should be held to allow the complainant to present their case and comment on the evidence. A reasoned decision should then be communicated in writing, together with details of the right of appeal.

Tribunals will scrutinise the quality of the investigation process when assessing liability and compensation. A flawed investigation can increase exposure, including the risk of aggravated damages.

3. Managing risk where the worker resigns

In some cases, a worker may resign alleging that workplace harassment has fundamentally breached the implied term of mutual trust and confidence. This may give rise to a claim for constructive dismissal in addition to any discrimination claim.

To succeed in constructive dismissal, the worker must show that the employer committed a fundamental breach of contract and that they resigned in response to that breach without undue delay. A failure to investigate credible harassment allegations, or tolerating a hostile working environment, may contribute to such a finding.

Even where a constructive dismissal claim does not succeed, the underlying harassment claim may proceed independently.

In certain circumstances, parties may explore a negotiated exit under a settlement or settlement agreement. While settlement may provide commercial certainty, it does not remove the organisation’s broader obligation to address systemic cultural or compliance issues.

4. Governance, record keeping and training

Effective governance extends beyond responding to individual complaints. Employers should maintain accurate records of concerns raised, steps taken and outcomes reached. Managers should be trained not only on recognising harassment but also on handling disclosures appropriately and documenting discussions.

Training records, policy review dates and evidence of leadership engagement may be decisive if an employer seeks to rely on the “all reasonable steps” defence in tribunal proceedings.

Workplace harassment compliance is therefore not confined to reactive case management. It involves continuous monitoring of workplace culture, clear reporting pathways, fair investigative processes and documented preventative measures.

Section F: Summary

Workplace harassment is governed by a statutory framework under the Equality Act 2010. The legal test requires unwanted conduct related to a protected characteristic that has the purpose or effect of violating dignity or creating a hostile or offensive environment. Where that threshold is met, liability can extend beyond the individual perpetrator to the employer.

Employers should treat harassment compliance as an ongoing risk. Compensation for discrimination is uncapped and may include injury to feelings awards assessed under the Vento guidelines, financial loss and, in sexual harassment cases, a potential uplift of up to 25% where reasonable preventative steps were not taken.

Section G: Need Assistance?

DavidsonMorris can support with workplace harassment complaints, investigations, preventative compliance frameworks and tribunal defence. Working alongside our HR consultants, we support organisations in implementing practical measures that reduce exposure while maintaining procedural fairness.

For advice on a specific issue, contact us.

Section H: Workplace Harassment FAQs

What legally counts as workplace harassment in the UK?

Harassment under the Equality Act 2010 requires unwanted conduct related to a protected characteristic that has the purpose or effect of violating a person’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment. The effect of the conduct can be sufficient even where there was no intention to offend.

Do I need two years’ service to bring a harassment claim?

There is no minimum length of service requirement for bringing a harassment claim under the Equality Act 2010. Protection applies from the start of employment.

What is the time limit for a workplace harassment claim?

A claim must generally be presented to the Employment Tribunal within three months less one day of the act complained of. ACAS Early Conciliation is required before issuing proceedings and pauses the limitation period, but internal grievance procedures do not automatically extend the deadline.

How much compensation can be awarded for harassment?

Compensation for discrimination is uncapped. Awards may include financial loss and injury to feelings. Injury to feelings awards are commonly assessed using the Vento guidelines, with bands reflecting the seriousness of the conduct. Aggravated damages may also be awarded in appropriate cases.

Can an employer avoid liability?

An employer may avoid liability if it can show that it took all reasonable steps to prevent the harassment. This requires more than having a written policy. Tribunals will examine training, implementation and prior response to complaints.

What changed in October 2024 regarding sexual harassment?

From 26 October 2024, employers have a statutory duty to take reasonable steps to prevent sexual harassment. If a tribunal finds that this duty was not met, it may increase compensation by up to 25 percent. The Equality and Human Rights Commission also has enforcement powers in relation to the preventative duty.

Is bullying the same as harassment?

Bullying may involve offensive or undermining behaviour but does not necessarily relate to a protected characteristic. Only conduct that meets the statutory test under the Equality Act 2010 constitutes unlawful harassment. Bullying may still give rise to other employment law claims depending on the circumstances.

Does harassment have to be repeated?

A single serious incident can amount to harassment if it meets the statutory test. In other cases, a pattern of behaviour over time may be relied upon as a continuing act.

Section I: Glossary

Section J: Useful Links