This guide is maintained as a current resource for September 2026 and covers only the laws of England and Wales. Information is for general guidance, not legal advice. Consult a qualified solicitor for advice specific to your situation.
Third-party harassment at work liability explained under UK employment law, including Equality Act 2010 rules, the 2013 repeal, the Worker Protection Act 2023 duty on employers, tribunal claims, and compensation rights in England and Wales.
Third-party harassment at work liability refers to the legal question of when an employer may be responsible for harassment suffered by an employee from someone who is not an employee or worker of the organisation. This can include customers, clients, patients, contractors, service users, or members of the public.
In England and Wales, the legal position has changed significantly over time under the Equality Act 2010, particularly in relation to employer responsibility for harassment by third parties. The current framework is more limited than earlier versions of the law, but recent reforms have reintroduced a duty relating specifically to sexual harassment.
This article explains the legal position, historical changes, current duties, tribunal processes, and practical implications for employers and employees.
Legal Framework: Equality Act 2010
The main legislation governing discrimination and harassment in the workplace is the Equality Act 2010.
Harassment is defined under section 26 as unwanted conduct related to a protected characteristic that has the purpose or effect of:
- Violating a person's dignity, or
- Creating an intimidating, hostile, degrading, humiliating, or offensive environment
Protected characteristics include sex, race, disability, age, religion or belief, sexual orientation, gender reassignment, and others.
Employer liability for harassment is generally based on vicarious liability under section 109, where an employer can be responsible for acts carried out by employees in the course of employment.
Third-party harassment is different because the perpetrator is not an employee.
Historical Position on Third-Party Harassment
Original Protection (pre-2013)
Originally, the Equality Act 2010 included provisions (section 40(2)–(4)) that made employers liable if:
- An employee was harassed by a third party
- The employer knew about at least two previous incidents
- The employer failed to take reasonable steps to prevent further harassment
This created a form of “repeated incident” liability.
Repeal in 2013
These provisions were repealed by the Enterprise and Regulatory Reform Act 2013.
As a result:
- Employers were no longer directly liable for third-party harassment under a specific statutory provision
- Claimants had to rely on other legal routes, such as:
- Direct discrimination claims
- Constructive unfair dismissal
- Health and safety obligations
- Failure to take reasonable steps under general harassment provisions (limited effectiveness)
Court Interpretation
Following the repeal, courts confirmed that the statutory basis for third-party harassment claims was no longer available in the same form, limiting direct employer liability for acts by customers or service users.
Current Legal Position (2026)
No General Civil Liability for Third-Party Harassment
At present, there is no general standalone civil claim in the Equality Act 2010 that makes employers automatically liable for harassment committed by third parties.
However, employers may still be liable in certain circumstances, depending on how the situation is framed legally.
The Worker Protection (Amendment of Equality Act 2010) Act 2023
A significant development is the Worker Protection (Amendment of Equality Act 2010) Act 2023, which introduced a new legal duty on employers.
Employer Duty to Prevent Sexual Harassment
Employers must take reasonable steps to prevent sexual harassment of employees in the course of employment.
This duty is preventative rather than purely reactive.
Key points:
- It applies specifically to sexual harassment
- It includes harassment that may involve third parties
- It focuses on prevention rather than compensation claims alone
- It can influence compensation awards where sexual harassment is proven
Under this framework, employment tribunals may consider whether an employer failed to take reasonable preventative steps and may adjust compensation accordingly where sexual harassment occurred.
What Counts as a Third Party
A third party is any individual who is not:
- An employee
- A worker of the employer
Examples include:
- Customers or clients
- Patients or service users
- Contractors or suppliers
- Visitors to the workplace
- Members of the public
When Employers May Still Be Liable
Even without a general third-party harassment claim, liability may arise indirectly through other legal routes:
1. Failure to Provide a Safe Working Environment
Employers have duties under health and safety law to ensure employees are not exposed to foreseeable risks, including harassment risks.
2. Indirect Discrimination Claims
If a workplace practice exposes a protected group to disproportionate harassment risk (for example, customer-facing roles without protection), this may form the basis of an indirect discrimination claim.
3. Failure to Act on Known Risks
Where an employer is aware of repeated third-party harassment and fails to act, liability may arise through:
- Harassment claims linked to employer conduct
- Constructive dismissal claims
- Breach of statutory duties
4. Sexual Harassment Duty (Post-2023 Reform)
Where sexual harassment occurs, tribunals may consider whether the employer:
- Took reasonable preventative steps
- Had adequate policies and training
- Responded appropriately to known risks
Failure may increase compensation awards.
Examples of Third-Party Harassment Scenarios
Common workplace situations include:
- A retail worker repeatedly subjected to sexual comments by customers
- A healthcare worker experiencing racial abuse from patients
- A hospitality employee harassed by clients or venue users
- A public-facing employee targeted by discriminatory behaviour during work
Legal consequences depend heavily on whether the employer took reasonable steps to address foreseeable risks.
Employer Responsibilities and Risk Management
Employers are expected to manage third-party harassment risks through practical measures, including:
- Risk assessments for customer-facing roles
- Clear reporting procedures for incidents
- Staff training on harassment prevention
- Security measures where appropriate
- Policies for removing or banning abusive customers
- Support mechanisms for affected employees
Failure to implement reasonable protections can increase legal exposure.
Employment Tribunal Claims Process
Where a claim is brought, it is typically handled by an Employment Tribunal.
1. ACAS Early Conciliation
- Mandatory before issuing proceedings
- Designed to encourage settlement
2. Claim Submission (ET1)
- Sets out facts and legal basis
3. Employer Response (ET3)
- Employer defends claim and disputes liability
4. Evidence Stage
- Witness statements
- Incident logs
- Employer policies and training records
5. Tribunal Hearing
- Tribunal determines liability and remedies
Remedies and Compensation
Where claims succeed, tribunals may award:
- Financial compensation for loss
- Injury to feelings damages
- Interest on awards
- Adjustments where statutory duties have been breached
Compensation in discrimination cases is unlimited, depending on severity and impact.
Key Legal Developments and Trends
The law in this area is evolving:
- The 2013 repeal significantly reduced direct employer liability
- Recent reforms focus on prevention of sexual harassment rather than full reinstatement of older protections
- Increased emphasis on workplace culture and proactive risk management
- Growing scrutiny of employer responses to customer or client behaviour
Practical Implications
For employees:
- Record incidents in detail (dates, witnesses, context)
- Report harassment through internal procedures
- Identify whether employer responses were adequate
- Use ACAS Early Conciliation where necessary
For employers:
- Implement clear anti-harassment policies
- Train staff in handling third-party conduct
- Monitor repeat incidents and risk patterns
- Take active steps to prevent foreseeable harassment
- Document all responses to complaints
Key Takeaways
Third-party harassment at work liability in the UK is more limited than it once was under the Equality Act 2010. The original statutory protection was repealed in 2013, removing direct employer liability in most cases involving customers or members of the public.
However, employers may still face liability indirectly through discrimination law, health and safety duties, and particularly through the modern duty to take reasonable steps to prevent sexual harassment. The legal emphasis has shifted towards prevention, risk management, and workplace safeguarding rather than automatic liability.
