Can employers be held liable for harassment that takes place during a work-related social event?

Employers can be held vicariously liable for discriminatory acts by employees - even if the event is held off site and out of normal working hours. Under the Equality Act 2010, protection from harassment covers sexual harassment as well as unwanted conduct on the grounds of age, disability, gender reassignment, race, religion or belief, and sexual orientation.

Employers should ensure that their policy on harassment is up to date, and has been brought to the attention of all employees. The employer will have a defence to a claim of harassment if it can show that it took all reasonable steps to prevent the employee from performing the act. Ensuring that employees are aware of the policy on harassment is a key first step to establishing this defence.

Current legislation does not provide for employers to be liable for harassment of employees by third parties. The Employment Rights Bill, published on 10 October 2024, includes provisions to introduce employer liability for third-party harassment, but it is not yet known when this will come into effect.

A new positive duty on employers to take reasonable steps to prevent sexual harassment of their employees in the course of their employment is in force from 26 October 2024. This includes prevention of harassment by third parties. Even before that date, employers should ensure that they take steps to prevent any harassment of employees, for example when choosing a venue for a social event.