Sexual harassment presents a significant problem for numerous small enterprises across the United Kingdom. Legally, it is described as conduct that is unwelcome and that intimidates, offends or leaves a person feeling violated. The applicable statutes are identical for organisations of any scale, whether large or small, because the conduct is classified under discrimination law and must be addressed by employers.
As of April 6, 2026, sexual harassment became a ‘qualifying disclosure’ under whistleblowing law, which means that complainants have protection from detriment and unfair dismissal. From October 30, 2026, employers must take ‘all reasonable steps’ rather than the current ‘reasonable steps’ to prevent harassment. Employers will also be liable for harassment from third parties, including customers and clients, unless they have taken reasonable steps to prevent it.
Prevention and Legislation
A workplace risk assessment can help reduce the instance of harassment. Employers should consider the sector they’re in and the type of work their employees do, as well as more risky scenarios such as work social events and situations involving alcohol and power imbalances. Updating anti-harassment policies and reporting procedures is also essential, as is providing regular and meaningful training to staff.
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Emma Gross, employment law partner at Spencer West LLP, advises small business owners to take a proactive approach rather than a reactive approach, and to put appropriate measures in place. This includes ensuring that managers know how to identify and respond to concerns, and that staff understand what sexual harassment is and how to report it.
A 2025 Unite survey found that 25 per cent of women and almost three-quarters (68 per cent) of LGBT workers have been sexually assaulted at work. Of those who experienced assault, 75 per cent never reported it to their employer. This highlights the need for small businesses to take sexual harassment seriously and to have effective policies and procedures in place.
Handling Complaints
If someone raises a sexual harassment complaint, they have the option of it being handled either informally or formally through a grievance procedure. Employers should establish whether the complainant wants to have it dealt with formally or informally, and should investigate the complaint regardless of the answer. Karen Falconer, HR knowledge manager at HR Solutions, advises employers to take any complaint seriously, no matter how inconsequential it may seem, and to have a private conversation with the upset staff member.
Employers should also check if they have an existing anti-harassment policy in place, and should take a contemporaneous note of the conversation with the harassed employee. The alleged perpetrator should also be spoken to, and a meeting should be held with them as soon as possible to hear their version of events.
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In some cases, the alleged perpetrator may be completely justified in saying that it’s all been a misunderstanding once the employer has investigated what has happened. However, if the allegations are serious enough to be potential gross misconduct, the employer may need to place the alleged perpetrator on immediate suspension.
The Equality Act 2010 states that employers must put aside work performance or seniority when dealing with sexual harassment complaints, and that ignoring the Act can result in liability and vicarious liability for discrimination claims. Employers should also be aware that staff members can still appeal to a higher authority within the organisation or seek external support if they are not happy with the outcome of the complaint.
According to Falconer, employers should be prepared to escalate matters to a disciplinary hearing if they believe that the conduct meets that threshold, and should let the person know that this is what they are going to do. The staff member could still appeal to a higher authority within the organisation, and the external HR adviser could go against whatever the employer decides at the end of the internal investigation if they have handled things badly.