The UK Employment Rights Act: equality and harassment duties
October 30, 2026
The UK Employment Rights Act: equality and harassment dutiesOctober 30, 2026 Why should I read this?Measures to strengthen harassment protections came into force in October 2024, including a proactive duty on employers to take “reasonable steps” to prevent sexual harassment of their employees (read our update). Further changes are contained in the Employment Rights Act 2025 (“Act”), including:
Employers should also be aware that the government intends to develop guidance on employer best practice in protecting volunteers, interns and freelancers from sexual harassment (read our update on the call for evidence). To support employers as they respond to the Act’s measures, our more detailed briefings focus on specific topics within the Act and include the latest developments and practical implications. In this briefing, we review its equality provisions, including the significant changes to harassment. This briefing addresses the law in Great Britain. Equality and discrimination law is devolved in Northern Ireland, so the Act’s equality and harassment measures (and the Equality Act 2010) do not generally extend to Northern Ireland, where separate anti-discrimination legislation applies. What does the Act say?Harassment: “all” reasonable steps By adding the word “all” to the employer’s duty (i.e. take “all” reasonable steps to prevent sexual harassment of employees), the government’s intention is to strengthen the duty.However, the legislation does not itself prescribe which steps are reasonable for an employer to take. It provides for future regulations to specify the reasonable steps which an employer must take, and matters to which they must have regard, to prevent sexual harassment. The relevant regulation-making power came into force on 30 October 2026. The regulations may require an employer to have regard to specified matters when taking all reasonable steps. An employer that wants to show that it has taken all reasonable steps must take the steps set out in the regulations; as well as all other preventative steps that it is reasonable for them to take in the particular circumstances. Examples of steps which may be included in the regulations comprise: carrying out assessments of a specified description; publishing policies or plans; and steps relating to the reporting and handling of complaints. Following its equality law call for evidence (read our update on the call for evidence), the government has confirmed that it will bring forward regulations where it considers that doing so would be effective and proportionate. Evidence submitted to the call for evidence will inform decisions about any steps specified in those regulations. The EHRC’s existing technical guidance provides advice on the types of actions employers can take to prevent and respond to workplace harassment, including its Employer 8-step guide, which has now been further updated to take account of the October 2026 changes. Separately, following its equality law call for evidence, the government has confirmed that it intends to develop guidance on employer best practice in protecting volunteers, interns and freelancers from sexual harassment. This is a guidance-based approach rather than, at this stage, an extension of the statutory harassment protections to those groups. Harassment: third party harassment Until the Act’s changes took effect on 30 October 2026 there was no stand-alone employer liability for workplace harassment by a third party, such as a customer, client or contractor. However, the duty to take reasonable steps to prevent sexual harassment of employees was potentially wide enough to extend to taking steps to prevent sexual harassment by third parties. This is reflected in the Equality and Human Rights Commission’s existing guidance, which includes references to third party harassment. The Act changes this status quo by introducing employer liability in relation to other protected characteristics (not just sexual harassment) if:
It is currently unclear whether the government will provide examples of such reasonable steps in regulations, as it will do for sexual harassment, above. Harassment: whistleblowing Since 6 April 2026, a worker's disclosure of information tending to show that sexual harassment has occurred, is occurring or is likely to occur can qualify as a protected disclosure, meaning that they may benefit from whistleblowing protection against detriment and, for employees, unfair dismissal. They would still need to comply with the other requirements in the legislation, including meeting the public interest test. Such complaints may already be protected disclosures under existing law and it appears that the government’s aim is to raise awareness. Harassment and discrimination: NDAs and confidentiality Expected to come into force in September 2027, the new provisions will generally render void a provision in an agreement between an employer and a worker if it seeks to prevent the worker from making allegations or disclosures of information relating to certain work-related discrimination and harassment. For example, alleged discrimination or harassment relating to the employer’s, or another worker’s, conduct, or, where the alleged victim is the worker, or a colleague (such as a witness). According to the government, this could include: harassment that a worker witnesses their employer carry out against a customer; or harassment the worker suffers at the hands of the employer’s client. However, this change will not apply to certain excepted agreements that meet conditions. Further regulations will detail these exceptions. In a 2026 consultation, the government sought views on the conditions that could allow an NDA to qualify as an “excepted agreement”, including whether the worker should have to request confidentiality and receive independent written legal advice, give informed written consent, and have a 14 day cooling off period. The government is considering whether employers should be allowed to suggest confidentiality and whether the cooling off period should be changed or waived. Further proposals include: NDAs covering past incidents only; plain language drafting; and possible time limits on confidentiality. Even where the above conditions are satisfied, and the NDA is valid, workers will still be able to disclose information, as is the current situation (for example, to report a crime and to make a protected disclosure). These situations may be extended further, according to the consultation, and the scope of workers currently protected also extended. Harassment changes: practical implications for employers According to the government, the Act’s “all” reasonable steps preventative duty “emphasises the thorough approach” employers must take to avoid liability. Failure to comply with the preventative duty can also result in an uplift of up to 25% in compensation where an employment tribunal upholds a sexual harassment claim and finds that the duty was breached. The introduction of third party harassment liability affects all employers. However, it is particularly relevant in some sectors, such as hospitality and service sectors, and in certain roles where there is a higher interaction with contractors, suppliers, customers and members of the public. Many employers were already taking third party preventative steps prior to the new duty coming into effect, including harassment clauses in supplier contracts and displaying public notices (e.g. that harassment of employees will not be tolerated). Ensuring that reporting is encouraged, and reports investigated promptly and seriously with corrective action being taken, will be important additional measures. The significant restriction on the use of confidentiality clauses in relation to workplace harassment and discrimination will require employers to reconsider how confidentiality provisions are drafted and used. As well as ensuring that they are taking proactive steps to prevent workplace harassment, as highlighted above, employers should carefully review their contracts of employment, settlement and other agreements, and consider how this will affect their approach to defending or settling any such claims, once in force. This will also be relevant to the operation of policies during employment such as grievance and/or disciplinary investigations into allegations of discrimination and harassment. Other diversity changes in the Act Equality action plans Some employers are already required to publish gender pay gap data (with action plans encouraged but voluntary) on a publicly available government website. The duty is extended by the Act. Regulations will be made to require large employers (those in the private sector with 250 employees or more, together with specified large public authority employers) to develop and publish an equality action plan showing the steps that they are taking in relation to gender equality. This will include steps addressing the gender pay gap and supporting employees going through the menopause. Equality action plans were introduced on a voluntary basis in April 2026, and are expected to become mandatory in in 2027 (March 2027 for public authorities and April 2027 for private and voluntary sector employers), subject to secondary legislation. It is expected to be, at most, an annual reporting duty and enforcement measures will also be included in the regulations. In spring 2026, the Government published guidance to support employers in preparing gender equality action plans, together with a list of recommended, evidence-informed actions that employers can take to address their gender pay gap and support employees experiencing menopause. The government has committed to prepare separate guidance on the types of actions that are effective in tackling ethnicity and disability pay gaps, and also consider what other practical support it can provide to employers to help them act on their data and create meaningful change. Equal pay and outsourced workers Reflecting government concerns that outsourced services may allow some employers to avoid equal pay obligations, the Act provides that regulations will require organisations to name the providers they contract with for outsourced workers. The duty applies to employers falling within scope of gender pay gap reporting and it will form part of their annual disclosure. Full details are to follow, including definitions and parameters of the reporting duty. The government’s consultation on equal pay and pay discrimination ran from 14 July to 27 October 2026. It sought views on how to improve the current equal pay system by simplifying the existing framework, strengthening enforcement and introducing more proactive measures to prevent pay discrimination. It also explored proposals to improve the existing sex equal pay framework and how to make the right to equal pay more effective for ethnic minority and disabled people (see our briefing: UK Pay transparency and equal pay: major reforms on the horizon). The government confirmed on 29 October 2026 that it will consider the consultation responses and announce next steps in due course. The government has stated that implementation of the outsourcing reporting measure will be dependent on timelines for broader changes to pay gap reporting, including related measures in the proposed Equality (Race and Disability) Bill. Other diversity changes: practical implications for employers The government has confirmed that it will be introducing mandatory ethnicity and disability pay gap reporting for large employers. The government published its response and indicative primary legislation on mandatory ethnicity and disability pay gap reporting in March 2026 (see our briefing: Ethnicity and disability pay gap reporting coming soon), but the proposed Equality (Race and Disability) Bill and the final implementation timetable remains awaited. In the meantime, employers should be taking steps to support employees experiencing menopause and to properly understand their gender, ethnicity and disability pay practices, including establishing the causes of any significant pay differences, assessing justification and establishing a plan to address any differences that cannot be justified on non-discriminatory grounds. Allowing enough time to plan will enable more targeted action to bring about change. In relation to publishing outsourcing provider information, employers should note the reputational risks where pay gaps exist. For example, between the employer’s own workforce and its contractors. The government’s aim is to “motivate [employers] to support efforts to improve gender equality in organisations they are linked to”. Separately from the Act, the government has confirmed that it will not commence section 14 of the Equality Act 2010, which provides for claims involving a combination of two protected characteristics. Following its equality law call for evidence, the government concluded that commencement would not materially increase protection and could create legal uncertainty. Instead, the government intends to produce guidance to improve understanding of how existing equality law protects against combined discrimination and will continue to monitor developments in the case law. Key actionsEmployers should take steps now to address the recent and upcoming changes, including:
Further reading and resourcesThe Employment Rights Act (“Act”) received Royal Assent on 18 December 2025 and the government has been pursuing a staged implementation over 2026 and 2027. The Act includes 28 employment reforms and, cumulatively, the scale, breadth and complexity of the changes are significant for employers (read our tracker to keep abreast of developments across the Act and timescales for implementation). See also our briefings focusing on the Act’s changes to:
Our e-learning solutions are designed to help organisations build respectful workplace cultures, equip employees and managers to respond appropriately to workplace issues, and demonstrate proactive steps to meet evolving compliance requirements, including the duty to take all reasonable steps to prevent sexual harassment. Our online Respect@Work training covers inappropriate behaviour and harassment, reasonable adjustments for disabled people, and reporting and handling complaints. The Act is not alone in introducing diversity changes. Measures relating to ethnicity and disability reporting, equal pay rights and more will be delivered through the Equality (Race and Disability) Bill, not yet published (read our update on the consultation and our update on the call for evidence). The government published its response to the equality law call for evidence on 29 October 2026, confirming its approach to a number of further equality reforms, including harassment, combined discrimination and the socio-economic duty. How we can helpWe can help employers prepare for and implement these significant changes, including reviewing anti-harassment policies and risk assessments, assessing whether preventative measures are sufficiently robust to meet the strengthened “all reasonable steps” duty, reviewing arrangements for third-party harassment, and updating training, reporting and whistleblowing processes. We can also support employers in reviewing settlement agreements, NDAs and other confidentiality provisions as the new restrictions develop. For larger employers, we can support equality action planning and wider pay transparency readiness, including helping to identify the drivers behind pay disparities and developing evidence-based actions to address them. This can help employers prepare for mandatory equality action plans while also anticipating the wider direction of travel on ethnicity and disability pay reporting and equal pay reform. Latest Insights
Latest News
Latest Events
client news November 06, 2026 Eversheds Sutherland advises Mercedes-Benz on European fast-charging partne... firm news November 05, 2026 Eversheds Sutherland hires partner Peter Cheng to lead Hong Kong ECM practi... firm news October 27, 2026 Eversheds Sutherland (International) announces senior leadership appointmen... firm news October 26, 2026 Eversheds Sutherland deepens fintech and regulatory bench with double partn... hybrid Europe Action Week 2026 Europe Action Week returns this November with a dynamic mix of events designed to help you navigate what’s next. virtual Dutch employment law training November 10, 2026 2.00pm - 5.00pm (GMT) Virtual virtual Strategic absence management November 11, 2026 9.30am - 12.30pm (GMT) Virtual virtual Belgian employment law training November 17, 2026 2.00pm - 5.00pm (GMT) Virtual |