The Workers Protection Act: What is it and what does it mean for our organisations?

As a regulatory economist by training, I’m often interested in the role that regulations play in addressing social ‘externalities’. This concept has many applications in society in general, but there is often a reluctance to regulate for ‘intangible’ externalities. A new piece of legislation, seeks to address the insidious nature of sexual harassment in the workplace. The Worker Protection (Amendment of Equality Act 2010) Act 2023, having gained royal assent on 26 October 2023 comes into force on 26 October 2024.

Sexual harassment in the workplace is a longstanding problem in a number of industries and often goes unresolved under a cloud of drink fueled events, NDAs and the significant emotional toll it can have on those seeking to fight for justice in the face of a patriarchy designed to protect those with relative power. 

Although harassment, discrimination and victimisation related to protected characteristics has been illegal for several years, this new piece of legislation seeks to place a more explicit and proactive duty on employers, with the hope of creating a safe and more respectful workplace for all employees. 

Those that operate outside of the loop of EDI in the workplace may wonder what all the fuss is about and assume that the problem can’t be so bad that the government needs to legislate against it - however recent years have seen a prevalence of cases coming from a number of organisations that have struggled to protect their workers from the actions of individuals that have little regard for creating environments free of harassment, such as the CBI, McDonalds, and the NHS.

In recent years there have been concerns about where an employer’s duty of care starts and finishes, with some employers arguing that they shouldn’t be liable for alleged sexual assault that occurred between employees outside working hours. Additionally employers are grappling with power dynamics with concerns often raised about senior male staff assaulting more junior colleagues. Matters are often further complicated by workers that feel ‘powerless’ to complain due to complex work and living arrangements, especially for those that are working under visa arrangements and face the threat of losing their right to work in the UK.

So what does the new legislation mean for companies? Companies will have a new legal duty to take "reasonable steps" to prevent sexual harassment occurring. Which includes developing and implementing policies and procedures to prevent sexual harassment, providing training for employees on sexual harassment and how to report it, creating a supportive environment where employees feel comfortable reporting incidents and taking appropriate action when incidents are reported. 

In practical terms, there are a number of things that organisations should be doing in order to prepare themselves for the upcoming legislation, including but not limited to:

1. Review and update your existing policies and procedures to ensure they comply with the Act and are explicit and directive enough for managers to apply them consistently.
2. Provide comprehensive training to all employees on sexual harassment, including what constitutes harassment, how to report it, and the company's procedures for handling complaints.
3. Create a clear and accessible reporting mechanism for employees to report incidents - alongside support for those dealing with difficult situations.
4. Investigate all complaints promptly and fairly - with additional support and training for those tasked with investigating complaints.
5. Take appropriate and proportionate disciplinary action against perpetrators - taking the opportunity to conduct a lessons learnt exercise.
6. Monitor and evaluate the effectiveness of these prevention measures - both quantitative and qualitative data should be leveraged.

Whilst legislation can be a tricky world to navigate, we thought it would be helpful to outline what this means for different roles within an organisation: 

• Directors: Will be responsible for overseeing the development and implementation of the sexual harassment prevention strategy, ensuring compliance with the Act, and demonstrating a commitment to a harassment-free workplace.
• CEOs: Will need to lead by example, promoting a culture of respect, allocating resources for harassment prevention initiatives and being vocal about the need for staff to take this seriously.
• HR Directors / People Leads: Will need to develop and manage the prevention strategy, providing training, handling complaints, and ensuring day to day compliance with the Act.
• Managers: Will need to develop a nuanced understanding of sexual harassment and its many manifestations, as well as understanding the organisation’s policies and procedures, addressing concerns raised by employees, and creating a supportive work environment.

Breaches of the Worker Protection Act can lead to significant consequences for companies, including employment tribunal claims brought by victims of sexual harassment, substantial financial penalties, and severe damage to the company's reputation, potentially leading to loss of customers, investors, and employees.

With only a few months left until the obligation comes into effect, and the significant work needed to mitigate the risks involved in not having an appropriate sexual harassment prevention strategy - feel free to reach out to us to discuss how we can support you.

Written by Mac Alonge