Significant changes to employment law come into force on 30 October 2026, introducing stronger responsibilities for employers around workplace harassment and trade union rights. For businesses across Cumbria, the deadline is fast approaching, and some existing workplace policies and procedures may no longer be sufficient.

A member of staff is subjected to inappropriate comments from a customer. A contractor behaves in a discriminatory way towards an employee. A manager receives a harassment complaint but isn’t sure how to handle it.

These are situations that businesses can encounter during everyday operations.

But from 30 October, the legal responsibilities surrounding workplace harassment will become significantly stronger under the Employment Rights Act 2025.

For employers, the changes mean it is increasingly important to demonstrate that appropriate preventative measures are in place, rather than relying on policies that are only reviewed when something goes wrong.

The question is whether your business is taking all the steps reasonably expected of it to protect employees.

1. Employers must take ‘all reasonable steps’ to prevent sexual harassment

Since October 2024, employers have been legally required to take reasonable steps to prevent sexual harassment of their employees.

From 30 October 2026, this obligation strengthens to ‘all reasonable steps’.

While the difference in wording might seem relatively small, the implications for employers are significant.

Businesses will need to be able to demonstrate that they have taken all the preventative measures that are reasonable in their circumstances, rather than simply implementing some measures or relying on existing policies.

What is considered reasonable will depend on factors including the size of the business, the sector it operates in and the risks employees face.

For example, a hospitality business where employees regularly interact with customers may face different risks from an office-based organisation.

However, both must take appropriate steps to prevent sexual harassment.

Having a written policy is important, but it may not be enough on its own.

Employers should consider whether their policies are being actively implemented, whether managers understand their responsibilities, whether employees know how to report concerns and whether potential risks have been properly assessed.

Being able to demonstrate what your business has done to prevent harassment could become just as important as the measures themselves.

2. Businesses could be liable for harassment by customers, clients and other third parties

One of the most significant changes arriving on 30 October concerns harassment by people who are not directly employed by a business.

Under the new provisions, employers could be held liable for harassment carried out by third parties where they have failed to take all reasonable steps to prevent it.

Third parties can include customers, clients, contractors, suppliers, service users and members of the public.

Importantly, these provisions are not limited to sexual harassment. They also concern harassment related to other protected characteristics covered by the Equality Act 2010.

Consider a few everyday situations.

An employee working in a hotel experiences repeated inappropriate comments from a guest.

A retail worker is subjected to racist abuse by a customer.

An employee working alongside an external contractor experiences discriminatory behaviour.

These situations may involve people outside the organisation, but that does not necessarily remove the employer’s legal responsibilities.

From 30 October, where the statutory conditions are met, an employer could face liability if it has failed to take all reasonable steps to prevent the harassment.

This does not mean an employer will automatically be liable whenever a third party behaves inappropriately.

However, it does make the preventative measures a business has taken particularly important.

For Cumbria’s hospitality, tourism, retail, care and other customer-facing businesses, this is a change that deserves careful attention.

If an employee reported harassment by a customer tomorrow, would your managers know how to respond? And could your business demonstrate what it had done to prevent that situation arising?

3. What should employers be reviewing?

With the changes approaching, businesses should consider whether their existing arrangements adequately reflect the strengthened responsibilities.

Some important questions include:

• Workplace policies: Are your harassment and discrimination policies up to date, and do they adequately cover third-party harassment?
• Risk assessments: Have you considered the circumstances in which employees could experience harassment, including interactions with customers, contractors and members of the public?
• Training: Do managers and employees understand how to recognise, prevent and respond to inappropriate behaviour?
• Reporting procedures: Do employees know how to raise concerns, and are there appropriate processes for handling complaints?
• Record keeping: Can your business demonstrate the preventative measures it has taken and how concerns have been managed?
• Third-party arrangements: Have you considered whether customer-facing procedures or relevant contractual arrangements need reviewing?

These are not simply administrative considerations.

If an employee brings a harassment claim, the steps an employer took to prevent the behaviour could be a significant factor in determining liability.

The precise measures required will differ between businesses, and no single checklist can guarantee compliance.

For employers who are uncertain whether their existing procedures go far enough, seeking specialist HR or employment law advice can help identify potential gaps before they develop into more serious issues.

4. Trade union rights are also changing on 30 October

Workplace harassment is not the only area affected by the upcoming reforms.

A further package of trade union measures will also take effect on 30 October 2026.

These include stronger rights for trade unions to request access to workplaces, changes to trade union recognition procedures, additional rights and protections for certain trade union representatives, and expanded protections against detrimental treatment connected with industrial action.

The changes may be particularly relevant to employers dealing with trade union recognition, employee representation or industrial relations matters.

Businesses should familiarise themselves with the updated requirements and ensure managers understand how requests and employee representation matters should be handled.

Further changes to trade union rights are expected from January 2027, including a new employer duty to inform workers of their right to join a trade union.

5. Employment law changes are not stopping in October

The changes taking effect on 30 October form part of a much wider programme of employment law reform.

Earlier this month, the time limit for bringing most Employment Tribunal claims increased from three months to six months, subject to transitional rules and applicable exceptions.

Further significant changes are scheduled for 1 January 2027, including reducing the standard qualifying period for ordinary unfair dismissal claims from two years to six months and removing the cap on compensatory awards for unfair dismissal.

Additional reforms are expected throughout 2027.

For many employers, particularly SMEs without dedicated HR teams, keeping track of these changes while managing the day-to-day demands of running a business can be challenging.

And the risk is not necessarily that a business deliberately ignores its legal responsibilities.

It may simply be that an outdated policy remains in use, a manager is unaware of a new requirement, or an important procedure has not been reviewed.

With employment law changing at this pace, businesses should not assume that the processes they have always used will continue to provide the same level of protection.

Is your business prepared for the changes?

With 30 October fast approaching, now is an important time for employers to consider whether their workplace policies and procedures meet the strengthened requirements.

Cumbria Chamber of Commerce can help businesses understand the changes and access expert support.

Existing Chamber members can access specialist HR and employment law guidance through Chamber Protect, delivered by Quest, as part of their membership benefits.

For businesses that are not currently Chamber members, this is an opportunity to explore the expert support, HR advice and wider business protection available through membership.

Whether you are concerned about your existing harassment policies, unsure how the reforms affect your organisation or want reassurance that your procedures are up to date, getting advice before a problem arises could make a significant difference.

Don’t wait until a complaint or employment dispute to discover your business wasn’t adequately prepared.

Explore our Employment Rights Act guide and complete the enquiry form to find out how Cumbria Chamber can support your business.

Get Expert Help Preparing Your Business

Employment legislation and implementation guidance may change. Businesses should seek appropriate professional advice on their individual circumstances.