The Worker Protection (Amendment of Equality Act 2010) Bill received Royal Assent on 26 October 2023, becoming the Worker Protection (Amendment of Equality Act 2010) Act 2023.
The Worker Protection Act 2023, due to come into force in October 2024, amends the Equality Act 2010 by imposing a new duty on employers to take “reasonable steps” to prevent sexual harassment of their employees in the course of their employment.
The Act will also empower employment tribunals to increase compensation by up to 25% if it finds that the employer is in breach of this new duty to prevent sexual harassment. Therefore, any additional uplift could be substantial considering that discrimination cases, and those involving sexual harassment, often include awards that are over £30k. It is worth noting that an employee cannot bring a free-standing claim alleging a breach of this duty, the employment tribunal would determine the extent of the failure under Section 40A(1) as part of the full harassment claim.
However, the Equality and Human Rights Commission (EHRC) will likely be able to take enforcement steps as independent action against employers who breach this duty.
What will firms need to do?
There are no specific directives under the updated Act yet, as the “reasonable steps” are not yet defined. However, the EHRC is believed to be designing a new statutory Code of Practice and technical guidance, which will include the steps employers should take to comply with the law. This updated Code of Practice and guidance will also be subject to consultation. Although the new duty is not yet in force, firms and all employers should be taking steps now, with preparations that include:
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Review and update employee handbooks, policies, controls and procedures (PCPs)
Employers must review, strengthen and update these to ensure they meet regulatory requirements and the legal duty to take “reasonable steps” to proactively prevent sexual harassment in the workplace.
The updated Act moves from just reacting to complaints to taking steps to prevent harassment from occurring in the first place. It is this crucial change in wording that employers and those with managerial responsibility must consider. Firms must ensure there are clear reporting PCPs in place, an established complaints handling process, and that every issue is investigated in a fair and unbiased manner.
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Risk Assessments
Under the new “preventative duty” requirements, employers will be responsible for actively assessing working environment risks and implementing necessary measures. Where needed, firms should update risk assessment procedures, establish clear anti-harassment policies, and update training and reporting procedures.
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Training
Firms should ensure that all staff and managers are informed about the updated legislation and its practical implications. They must consider providing additional training and awareness programmes and ensure that training is recorded. They must also ensure all staff feel confident to report and act upon issues when needed.
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Speak to Your Policy Provider
Firms must ensure they fully understand the extent of any coverage against the financial implications of employment tribunals and liaise with their policy provider to ensure adequate protection.
Sessions for Solicitors – Stay Informed
PIB Insurance Brokers in association with The Strategic Partner hosts regular Sessions for Solicitors, which free to attend. These also provide an opportunity for firms to address their concerns regarding professional indemnity insurance obligations.