Stronger laws on workplace harassment in bill

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As a restaurateur, or as an owner or director of an eatery, you may already know that in March 2023 the amendment to the Worker Protection (Amendment of Equality Act 2010) Bill  had its second reading before the House of Lords. That means this private member’s bill is likely to be passed into law following a third and final reading.

So, what does this mean for the hospitality industry as a whole? In this article, we’ll shed some light on the implications of the proposed changes to current legislation and offer guidance and solutions on how you and your business can protect yourself from potential prosecution and legal ramifications.

What’s the important update?

The key thing to be aware of is that employers will be liable for any third-party harassment of employees, with a duty of care and protection placed directly on employers to look after those affected, particularly in a sexual context.

While the original 2010 legislation went some of the way towards offering protection (such as implementing equal opportunities policies and/or enforcing anti-bullying and anti-harassment policies, as well as relevant anti-harassment  training for staff), this amended version of the Worker Protection Bill is intended to make it very clear what the roles and responsibilities are of those in charge – which until now, has continued to be a bit of a grey area, particularly for the hospitality industry. And the most significant element to be addressed is the attitude from a “third party”, so typically, how customers or suppliers treat and address staff.

A change in attitude, an increase in compensation

A shift in gender discrimination and subsequent actions now means that it isn’t just those that identify as female that can expect an intervention when there is an example of harassment.

As an example, if a restaurant diner comments or even gestures about a male server’s physique, and the staff member lodges an official complaint, this can be upheld under the new bill, and the employer has a clear responsibility to follow this complaint up and offer adequate support to the complainant.

And it’s critical to bear in mind that this bill means the complaint will be against the employer and NOT the person who made the comment.

While some may be tempted to skim-read legal ramifications, please DON’T – there may be a financial cost for overlooking this updated bill. In an article from Clyde and Co Law, the duty to prevent sexual harassment will be enforceable via an employment tribunal where “it has first upheld a claim for sexual harassment”.  And if a tribunal rules that there has been a breach of employer duty, the financial cost to that employer could be as much as a 25 percent uplift in compensation paid out. And with no upper cap on the pay-out for sexual harassment, this amount could run into thousands when a complaint is upheld.

Discover more about the financial implications to employers here.

Add to this the weight of the Equality and Human Rights Commission (EHRC) who are also ready to act if there has been a breach, it’s evident that this bill cannot be ignored. And forewarned is forearmed, which brings us onto how best an employer can be prepared for such an incident.

How Management Liability can protect you and your business

To make sure that you and your hospitality business are adequately covered with Management Liability insurance, and you understand the full rights of your staff, talk to one of our specialist team on 020 7543 2807. Or request a call back here.

Max Palmer-Jeffery

 Business Relationship Manager

  Telephone number: 020 3846 5274
  Mobile number: 07974 253097
  Email: [email protected]
  LinkedIn: Max Palmer-Jeffery