Employers now liable for "third party" sexual harassment

EMPLOYERS face unlimited damages if they fail to protect employees from sexual harassment by third parties under new laws coming into force this week.

Amendments to the Sex Discrimination Act 1975 will not only see new rules governing unwanted conduct relating to a person's sex, but will for the first time hold employers responsible for repeated sexual harassment encountered by staff from clients, suppliers and other third parties.

Employees will not have to resign to make bring action and if successful there is no limit on compensation.

According to Joan Pettingill, partner at commercial law firm hlw, which has offices in Leeds and Sheffield, many bosses are unaware of the new rules.

“The changes should not be underestimated,” she warned.

“Every member of staff is now protected from sexual harassment by anyone meet as part of their work. This includes client meetings, networking events and dealings with external suppliers.”

Ms Pettingill said that as a result of the amendments employers will be expected to protect their staff from harassment or face being liable.

She added: “The courts will not accept protecting a major contract or important relationship as a defence in court – firms need to prepare now.”

Witnesses to sexual harassment will also be able to complain if they believe that the discrimination has had the effect or purpose of “violating dignity” or creating an “intimidating environment”.

Employers who know that an employee is being consistently discriminated against or being made to feel uncomfortable on the grounds of their gender and does nothing about it will also be liable to legal action.