Contents
Status at 31 October 2026: in force since 30 October 2026
Section 21 of the Employment Rights Act 2025 inserted new subsections (1A) to (1C) into section 40 of the Equality Act 2010. They came into force on 30 October 2026 (S.I. 2026/1065, regulation 3), in England, Scotland and Wales. Check before relying on this guide after 31 October 2026.
The short version
- The rule. An employer must not permit a third party to harass an employee.
- When you “permit” it. Only if the third party harasses the employee in the course of the employee’s employment and you failed to take all reasonable steps to prevent it.
- Who is a third party. Anyone who is not you and not one of your employees: customers, clients, service users, suppliers, contractors, tradespeople, visitors and members of the public. Acas also lists people at conferences or events.
- What it covers. Harassment as defined in section 26 of the Equality Act. That includes unwanted conduct of a sexual nature and unwanted conduct related to a protected characteristic such as sex, race, disability or sexual orientation.
- What protects you. Taking all reasonable steps. Acas lists examples, below.
This guide is general information, not legal advice. It covers Great Britain.
Examples from Acas
Acas gives two worked examples. In one, a convenience store owner is told by new staff that customers are threatening them to stop them reporting thefts, and that one worker is hearing racist terms from customers. The owner says this is part of the job and threatens to fire them if they complain. Acas says it is very unlikely the owner has taken all reasonable steps. In the other, a nightclub owner listens to staff who want more security training and a way to call for support, and puts in a policy, extra door staff, alarms, cameras, code words, safe areas and incident tracking. Acas says that owner is likely to have taken all reasonable steps. The examples are Acas’s illustrations, not rulings.
Steps Acas lists
| Step | What it can look like in a small business |
|---|---|
| Assess the risks regularly and act on them | A short list of where staff are alone with customers, late shifts, alcohol, customers’ homes |
| Have a policy that says how third-party harassment is dealt with | One paragraph in your harassment or bullying policy, with who to tell |
| Train workers | Staff safety and de-escalation; how to leave a situation and who to call |
| Review customer, client and supplier terms | Add a clause that you may refuse service or end the contract if staff are harassed |
| Make sure individual transactions carry current terms | Booking confirmations and online terms include the same wording |
| Tell customers the consequences | A sign at the till or door, a line in booking emails |
| Monitor and record incidents and actions | A log of incidents, what you did and what you changed |
| For higher-risk places: enough staff, safety equipment, cameras | A second person on late shifts, a personal alarm, cameras where reasonable |
Acas says taking all reasonable steps means doing what is possible with the resources you have, and some steps will not be possible for every organisation. It suggests recording why you did not take a step you decided was not reasonable, including if you take it for only some teams.
When it happens
- Make sure the person is safe, and let them step away. Nobody should have to put up with it to keep a customer.
- Take it seriously and write down what happened, when, where and who saw it.
- Ask what they want to happen.
- Decide what you will do about the customer or supplier: a word, a written warning, refusing service, ending a contract, banning, or calling the police if there is a crime or threat.
- Tell the person what you did.
- Record it, and ask what would stop it happening again.
Frequently asked questions
Are we liable for anything a customer does?
Not for everything. The rule is about harassment of your employee in the course of their employment, and you are treated as permitting it only if you failed to take all reasonable steps to prevent it. If you did fail, the employee can bring a tribunal claim against you under section 40(1A), normally within six months of the harassment.
Do we have to ban customers?
The law does not say. What is reasonable depends on your situation. Acas lists a range of steps, from signs and policies to refusing service and, in higher-risk places, security and cameras.
Does it cover agency staff or the self-employed?
The new subsection is written about employees, and in the Equality Act “employee” includes someone working under a contract personally to do the work (section 83). Agency and other contract workers are covered by a separate section (41) that these changes did not amend. Treating everyone who works for you the same way is simpler.
Does it cover harassment by a customer that is not sexual?
The wording is about harassment under section 26 of the Equality Act, so it is not limited to sexual harassment.
Sources
Last checked 31 October 2026.
- Employment Rights Act 2025, section 21, legislation.gov.uk
- The Employment Rights Act 2025 (Commencement No. 6 and Transitional and Saving Provisions) Regulations 2026 (S.I. 2026/1065), legislation.gov.uk
- Equality Act 2010, section 26, legislation.gov.uk
- Preventing harassment and Harassment related to protected characteristics, Acas
- Steps for employers to prevent sexual harassment, Acas
Changes to this guide
- 28 October 2026: Published as a draft for review.
- 31 October 2026: Status box changed from “takes effect on 30 October” to “in force since 30 October” after checking legislation.gov.uk (sections 20 to 22 and S.I. 2026/1065) and Acas. Link to a new related guide added. The Acas third-party source link now points to its Preventing harassment page, because the old address redirects to Acas’s general harassment page. This change is not covered by the 28 October review.
This guide is general information written from the official sources listed above and checked on 31 October 2026. It is not legal, tax or financial advice, and Plainfiles is not endorsed by any government body. Rules change, so check the linked official pages for your own situation. Written and designed by Plainfiles with the help of artificial intelligence (AI) tools, then checked against the official legislation and guidance listed in the sources. How we write and check our guides.