Sexual Harassment at Work: 8 Situations That Could Put Your Business at Risk
Why preventing sexual harassment is about more than employment law. It’s about creating a workplace where everyone feels safe, respected and able to speak up.
Workplace banter, difficult customers, WhatsApp messages and Christmas parties. Could something seemingly ordinary expose your business to a serious sexual harassment complaint?
Most employers would say they don’t tolerate sexual harassment.
But what happens when an employee makes an inappropriate joke and everyone laughs? When a valued customer repeatedly makes personal comments? Or when someone working alone feels uncomfortable but doesn’t want to upset a client?
These situations tell us something important about workplace culture.
A positive safety culture isn’t just about preventing accidents and physical injuries. It’s also about recognising behaviours that could affect people’s dignity, wellbeing and psychological safety.
With important changes to employment law taking effect on 30 October 2026, employers need to be confident that their preventative measures work in practice.
We’ve previously explained the legal changes and employers’ responsibilities in our article, Sexual Harassment at Work: What SMEs Need to Do Before October 2026.
This time, we’re looking at eight everyday situations, what could happen when warning signs are overlooked, and how employers can build prevention into their everyday working practices.
What’s Changing on 30 October 2026?
Employers have been under a legal duty to take reasonable steps to prevent sexual harassment since October 2024.
From 30 October 2026, that duty strengthens to all reasonable steps. New provisions also introduce potential employer liability for harassment by third parties, including customers, clients and contractors, subject to the statutory conditions and reasonable-steps defence.
Importantly, third-party harassment protections extend beyond sexual harassment to other forms of unlawful harassment covered by the legislation.
This doesn’t mean every business must start again.
If you’ve already assessed your risks, introduced appropriate controls, trained employees and reviewed your arrangements, much of the necessary groundwork may already be in place.
The important question is whether you’ve considered all the preventative steps that are reasonable for your particular workplace.
Why Safety Culture Matters
When we talk about health and safety, we often focus on physical hazards, accidents and injuries.
But workplace safety also involves recognising the impact of behaviour, relationships and the working environment on employee wellbeing.
A positive safety culture is one where people feel able to raise concerns, managers respond appropriately and potential risks are addressed before they escalate.
The same principles apply to sexual harassment prevention.
If employees are reluctant to report inappropriate behaviour, or managers routinely dismiss concerns as harmless banter, even a well-written policy may offer little protection in practice.
The real test of workplace culture isn’t simply what a business says it expects. It’s what happens when someone challenges unacceptable behaviour.
Eight Everyday Situations That Could Put Your Business at Risk
1. When Does Workplace Banter Become Sexual Harassment?
The situation
A close-knit team regularly makes suggestive jokes and comments about colleagues’ appearances. Nobody complains, so the manager assumes everyone is comfortable.
One employee, however, finds the comments increasingly embarrassing and feels unable to challenge the behaviour.
What could happen?
Unwanted conduct of a sexual nature can amount to sexual harassment where it violates someone’s dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment.
Describing the behaviour as banter doesn’t automatically protect the employer.
What should employers do?
Make expectations clear, give managers the confidence to challenge inappropriate behaviour and encourage employees to raise concerns.
A healthy workplace culture shouldn’t rely on employees having to tolerate behaviour simply to fit in.
The question to ask: Would your managers recognise when workplace humour has crossed the line?
2. What If a Customer Sexually Harasses an Employee?
The situation
A regular customer repeatedly makes sexual comments to a member of staff.
The employee tells their manager, but the manager is reluctant to intervene because the customer brings valuable business.
What could happen?
The employee may experience stress, lose confidence in management or decide to leave. From 30 October 2026, the strengthened third-party harassment provisions may also create legal liability for the employer.
What should employers do?
Establish clear reporting and escalation arrangements, train managers and consider practical controls such as restricting contact with customers who behave inappropriately.
A positive safety culture means protecting employees even when challenging the behaviour may be commercially uncomfortable.
The question to ask: Would your managers know how to respond if a valuable customer behaved inappropriately?
3. Can WhatsApp Messages Lead to a Sexual Harassment Claim?
The situation
Employees share sexually suggestive images and inappropriate comments in a work-related WhatsApp group.
Some messages are sent in the evening, and a manager assumes that makes them a private matter.
What could happen?
Work-related online behaviour can form part of a sexual harassment complaint, even when it occurs outside normal working hours.
What should employers do?
Ensure policies and training reflect how employees communicate, including messaging groups, email, Teams and social media.
Respectful workplace behaviour shouldn’t stop when employees leave the premises.
The question to ask: Do your policies reflect the ways your employees actually communicate?
4. What Happens If Sexual Harassment Occurs at a Christmas Party?
The situation
At a company Christmas party, an employee makes repeated unwanted advances towards a colleague.
They later argue that it happened outside work and shouldn’t be treated as an employment issue.
What could happen?
Work-related social events can fall within the scope of employment law, potentially resulting in grievances, disciplinary action or legal claims.
What should employers do?
Consider relevant risks when planning events, communicate expected standards and ensure employees know how to report concerns.
A positive workplace culture should extend to social events, where everyone deserves to feel comfortable and safe.
The question to ask: Have you considered harassment prevention when planning work-related events?
5. Are Employees Working Alone at Greater Risk?
The situation
An employee regularly visits customers or clients alone.
During one appointment, a client makes unwanted sexual comments. The employee feels uncomfortable but worries that leaving could damage the business relationship.
What could happen?
The employee may experience anxiety, avoid future appointments or feel unsupported.
Where foreseeable risks haven’t been adequately considered, the employer may also face legal consequences.
What should employers do?
Review relevant lone-working and client-visit risk assessments to ensure they consider inappropriate behaviour and harassment alongside physical safety.
Practical controls may include check-in arrangements, accompanied visits, escalation procedures and clear authority to leave situations where employees feel unsafe.
Existing assessments may already cover these risks. The priority is checking that the controls remain effective.
The question to ask: Does your lone-working assessment consider harassment and inappropriate behaviour, not just physical safety?
6. What If the Person Responsible Is a Manager?
The situation
An employee receives unwanted personal attention from their line manager.
They feel unable to complain because that manager controls their working hours, performance reviews and progression opportunities.
What could happen?
The behaviour may continue because the employee doesn’t feel safe reporting it, potentially resulting in serious grievances, legal claims and damage to trust.
What should employers do?
Provide alternative reporting routes and ensure complaints involving senior employees can be handled fairly and independently.
Psychological safety is particularly important here. Employees need confidence that raising a concern won’t damage their career or working relationships.
The question to ask: If a complaint concerned a senior manager, would employees know who else they could approach?
7. When Does a Compliment Become Unwanted Conduct?
The situation
An employee repeatedly comments on a colleague’s body or appearance and initiates unwanted physical contact.
They believe they’re being friendly, but their colleague feels embarrassed and uncomfortable.
What could happen?
Depending on the circumstances, unwanted conduct of a sexual nature may constitute sexual harassment.
The person responsible doesn’t have to intend to cause offence for their behaviour to amount to harassment.
What should employers do?
Use practical examples in training to explain professional boundaries and the difference between intention and impact.
A respectful culture recognises that employees may experience the same behaviour differently.
The question to ask: Do your employees understand that intention and impact aren’t always the same thing?
8. Is Having a Sexual Harassment Policy Enough?
The situation
A business has an anti-harassment policy in its staff handbook.
However, it hasn’t been reviewed for several years, managers haven’t received specific training and nobody has checked whether employees understand how to report concerns.
What could happen?
The employer may struggle to demonstrate that it took all reasonable steps to prevent sexual harassment.
Where the relevant statutory conditions are met, an employment tribunal may increase compensation by up to 25% following a breach of the preventative duty.
What should employers do?
Review policies, workplace risk assessments, training, reporting arrangements and preventative controls.
Most importantly, check that employees understand the arrangements and managers apply them consistently.
A policy sets expectations. Workplace culture determines whether those expectations become everyday practice.
The question to ask: Could you demonstrate what your business has actually done to prevent sexual harassment?
What Could Sexual Harassment Really Cost Your Business?
The consequences aren’t limited to an uncomfortable workplace conversation or an internal grievance.
Depending on the circumstances, employers could face:
- Employment tribunal claims and potentially significant compensation.
- A possible compensation uplift of up to 25% where the relevant legal conditions are met.
- Regulatory enforcement by the Equality and Human Rights Commission.
- Investigation, legal and management costs.
- Employee stress, sickness absence and increased turnover.
- Damage to trust, morale and business reputation.
For smaller businesses, these consequences can be particularly difficult to manage.
A Practical Example: A Business with 15 Employees
Imagine an employee repeatedly receives inappropriate sexual comments from a colleague.
Their manager knows about the behaviour but dismisses it as harmless banter.
The employee eventually raises a formal grievance.
During the investigation, the business discovers that its harassment policy is outdated, managers haven’t received suitable training and previous concerns weren’t properly addressed.
Now consider the alternative.
The business has already identified relevant risks, trained managers, established accessible reporting procedures and made clear that inappropriate behaviour must be challenged.
When a concern arises, the manager responds promptly, follows the appropriate procedure and reviews whether further preventative measures are needed.
That’s the difference between simply having a policy and creating a culture where prevention is part of everyday working life.
What Should Employers Do Before 30 October?
If you’ve already completed a sexual harassment risk assessment and introduced appropriate controls, you don’t necessarily need to repeat the entire exercise.
However, this is a sensible opportunity to review whether your arrangements remain effective.
Consider the following:
- Have we identified where sexual harassment and third-party harassment could occur?
- Have we implemented the actions identified in our risk assessment?
- Do our policies and reporting procedures remain appropriate?
- Have employees and managers received suitable information and training?
- Have we considered lone working, customer contact, digital communications and work-related events?
- Do employees feel confident raising concerns without fear of repercussions?
- Can we demonstrate the preventative steps we’ve taken?
- Do we review our arrangements when circumstances change?
A completed risk assessment is a starting point, not the finished result.
The real value comes from implementing controls, communicating expectations and checking that arrangements work in practice.
Bringing HR, Health & Safety and Workplace Culture Together
Sexual harassment prevention is often viewed primarily as an HR responsibility.
But effective prevention benefits from a joined-up approach.
HR establishes behavioural expectations, policies, reporting arrangements and fair procedures for addressing concerns.
Health & Safety helps identify foreseeable risks arising from working arrangements, including lone working, customer contact and other situations where employees may be vulnerable.
Leadership and workplace culture determine whether those arrangements are understood, respected and consistently applied.
Workplace wellbeing considers the potential impact of inappropriate behaviour on employees’ psychological health, confidence and sense of safety.
These areas should complement each other, rather than operate in isolation.
For example, a lone-working assessment may identify the need for check-ins or accompanied visits, while an HR policy explains how employees can report inappropriate behaviour and what happens next.
A manager who understands both the practical risks and their responsibilities is better equipped to intervene early.
At Craven Consultancy Services, we believe a positive safety culture extends beyond physical safety.
It includes creating an environment where people feel respected, listened to and confident that concerns will be taken seriously.
How Craven Consultancy Services Can Help
Whether you’re reviewing existing arrangements or unsure where to begin, Craven Consultancy Services can help you take a practical, proportionate approach to preventing sexual harassment.
Our combined HR, Health & Safety and workplace wellbeing expertise helps businesses identify risks, strengthen preventative measures and develop a more positive, respectful workplace culture.
Our support includes:
- Sexual harassment risk assessments and preventative action plans.
- Staff handbook and policy reviews.
- Manager guidance and employee relations advice.
- Reporting and investigation procedures.
- Employee awareness and management training.
- Lone-working and third-party harassment risk controls.
- Advice on strengthening workplace safety culture and employee confidence in speaking up.
Looking for employee training?
Our Sexual Harassment in the Workplace course through the Craven Learning Hub can help employees develop awareness of inappropriate behaviour, professional boundaries and workplace responsibilities. The Bottom Line: A Safer Workplace Starts with Culture
Most employers don’t set out to create a workplace where sexual harassment is tolerated.
But risks can develop when inappropriate behaviour becomes normalised, warning signs are overlooked or employees don’t feel confident speaking up.
The October 2026 changes are an important reminder that prevention must be proactive.
For businesses that have already taken appropriate steps, this may mean reviewing and strengthening existing arrangements rather than starting again.
But compliance alone shouldn’t be the ambition.
A genuinely positive safety culture is one where people are protected from harm, treated with dignity and confident that their concerns will be heard.
Because workplace safety isn’t just about preventing accidents.
It’s about protecting people.
If you’re unsure whether your arrangements meet the strengthened requirements, contact Craven Consultancy Services for practical, joined-up HR and Health & Safety support.
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