Employers have a limited time to comply with the new laws on sexual harassment prevention

Employers are urged to take action quickly with only a few weeks left before October 26th, when new laws aimed at preventing sexual harassment will be introduced.

RSM UK warns businesses that they must protect their employees and comply with the Worker Protection Act.

Employers are required to prevent sexual harassment at work. If employers fail to take action, they could be subjected to unlimited compensation from employees in employment tribunals. The Equality and Human Rights Commission may also enforce their rights. The EHRC updated sexual harassment guidelines, released on September 26th, emphasizes the importance to assess risks, take preventative actions, and review workplace policies regularly.

Charlie Barnes, RSM UK’s head of employment law services, stressed the importance of employer responsibilities: “It is imperative that employers fully understand the new laws and take their responsibility for protecting employees seriously. Sexual harassment can be extremely distressing for employees. No business wants to see this happen. If sexual harassment is widespread and endemic, it can have serious legal, financial and reputational consequences for employers. “It’s everyone’s interest to take the necessary steps now to eradicate this.”

Financial Conduct Authority (FCA), which is responsible for policing misconduct in the sector, is taking action. The report Sexism In the City by the Treasury Committee from March 2024 revealed that harassment ranges from microaggressions such as being excluded from meetings or making inappropriate remarks, to criminal acts like assault and rape.

RSM UK offers the following advice to employers in order to prepare them for the new legislation:

• Assess the risk of harassment in areas that employees are most likely to be exposed.
• Create a culture where victims are encouraged to speak up, by offering a confidential reporting channel without fear of retaliation.
• Establish a formal procedure for investigating claims of harassment and taking the necessary actions.
• Update your harassment policies and ensure they are compliant with the law.
• All staff, including line managers and HR, should be trained to recognize harassment and how to handle complaints.
• Consult a professional to ensure that you are in compliance with all the new regulatory and legal expectations.

The FCA and Prudential Regulation Authority launched a consultation last year to improve diversity in the financial industry, and address non-financial concerns like sexual misconduct and bullying. These guidelines are expected to be implemented by the end of this year and will help shape standards for financial industry employees.

Businesses must act now to protect their employees from harassment and comply with the new Worker Protection Act.