Harassment at work is not always employee-on-employee. In many sectors, it is customers, clients, contractors or service users who behave inappropriately towards staff. This is known as third‑party harassment, and it presents serious risks for employers.
Staff may face verbal abuse, discriminatory remarks or unwanted conduct of a sexual nature from individuals outside the organisation. This kind of behaviour harms employee wellbeing, disrupts business, and can damage reputation.
Under the Equality Act 2010 and proposed legal reforms, employers have a growing responsibility to prevent and respond to third‑party harassment. Now is the time to review your approach.
Kingfisher Professional Services provides expert HR and employment law consultancy, training and policy support. We help organisations protect staff, reduce risk and create safe, respectful workplace cultures.
What is Third‑Party Harassment?
Definition and examples
Third‑party harassment refers to harassment of an employee by someone who is not a colleague or employer, such as a customer, client, contractor, visitor or service user.
Examples include:
- A delivery driver using racial slurs towards a warehouse operative.
- A client making sexist comments to a female engineer during a site meeting.
- A service user directing homophobic abuse at a care worker.
It can involve unwelcome conduct related to a protected characteristic (e.g. race, sex, disability) that creates an intimidating, hostile, degrading or humiliating environment.
Why it is a distinct risk for employers
Unlike internal harassment, third‑party harassment often happens in environments less visible to HR. It can go unreported and unaddressed, especially if staff feel unsure what will happen if they raise concerns.
Employers must consider the legal and reputational risks. Although historic protections were limited, current reforms mean inaction could soon lead to liability.
Employee wellbeing suffers when individuals feel unsafe around clients or customers. High staff turnover, low morale and absenteeism are common outcomes.
Industries with heavy third‑party interaction, such as retail, healthcare, hospitality, logistics and construction face higher exposure and need to be especially vigilant.
Legal Framework and Emerging Employer Obligations
Current legal position – Equality Act 2010 & employer liability
The Equality Act 2010 prohibits workplace harassment linked to protected characteristics (e.g. race, sex, religion).
Originally, the Act included provisions holding employers liable for harassment by third parties, but these were repealed in 2013. Currently, there is no specific standalone claim for third‑party harassment in most cases.
However, employers still have general duties under health & safety, contract law, human rights law, and anti-bullying frameworks to protect employees.
New and forthcoming obligations under the Employment Rights Bill
The Employment Rights Bill proposes reintroducing employer liability for third‑party harassment. It would apply where:
- A third party harasses an employee “in the course of employment”, and
- The employer fails to take all reasonable steps to prevent it.
Previously, employers had to know about two prior incidents to be liable. Under the new model, this requirement is removed. Employers will be judged on whether all reasonable steps were taken, even if the incident was the first of its kind.
Additionally, as of October 2024, employers must already take reasonable steps to prevent sexual harassment, including from third parties. This obligation is now in force.
What this means for employers now
Employers should act now. Reviewing policies, assessing risks, training staff and embedding reporting mechanisms are all best practice, even before statutory liability is reintroduced.
Identifying and Assessing the Risk of Third‑Party Harassment
Mapping where the risks arise
Risks are highest in roles that involve frequent interaction with external parties. This includes:
- Retail assistants, hospitality staff, receptionists
- Care workers, health professionals, social workers
- Engineers, contractors, salespeople and field workers
- Event staff or anyone attending off‑site meetings
Do not overlook external events, training sessions or socials where visitors may be present.
Carrying out a risk assessment
Employers should proactively assess:
- Which teams interact with third parties?
- Where are the highest-risk environments?
- Are there past incidents or near misses?
Document the assessment, assign accountability, and review regularly. Consider what reasonable measures are already in place and what more could be done (e.g., training, signage, supervision, contractual terms, response protocols).
Leadership sign-off ensures the risk is taken seriously across the organisation.
Developing Robust Policy and Procedures
Anti‑harassment policy that includes third parties
Your anti‑harassment or equality policy must explicitly cover harassment by customers, contractors, visitors and clients, not just by employees.
Set clear expectations:
- Zero tolerance for harassment, regardless of source
- Definitions of third‑party harassment
- Responsibilities for staff and managers
Make sure staff understand the policy, reporting routes, and where to seek support.
Reporting, investigation and response procedures
Reporting procedures must be simple, confidential and well-publicised. Line managers, HR and named individuals should be available to receive concerns.
Investigations should:
- Be prompt and impartial
- Assess employee safety and take protective steps
- Keep accurate records
Actions against third parties might include:
- Banning individuals from site
- Requiring behaviour agreements
- Enforcing anti-harassment clauses in contracts
Support affected staff through welfare services, adjustments to duties, and regular check-ins.
Contracts, suppliers and customers – embedding safeguards
Review agreements with contractors, clients and suppliers. Include clear clauses prohibiting harassment of your staff and requiring cooperation with investigations.
Training, Culture & Embedding Prevention
Training staff and managers
Training is essential to make your anti-harassment policies effective.
Staff should be trained on:
- What third‑party harassment looks like
- How to respond or report it
- Where to go for support
Managers should be trained on handling reports, supporting staff, and ensuring incidents are properly investigated.
Use real-life scenarios in training to highlight the specific challenges of harassment by clients, customers or contractors.
Promoting a culture of safe reporting and responsiveness
Create a culture where staff feel safe to speak up. Reassure employees that reports will be taken seriously and acted on without blame or retaliation.
Senior leadership must lead by example and reinforce that third‑party harassment will not be tolerated.
Monitoring, review and continuous improvement
Track third‑party harassment incidents by category. Look for patterns.
Regularly review and update policies based on findings and employee feedback. Use culture surveys to assess how safe and supported staff feel.
Managing Risk, Liability and Business Reputation
Employer liability and consequences
While liability is currently limited, the direction of travel is clear: employers will soon face greater responsibility for third‑party harassment.
Tribunals, the EHRC and the Employment Rights Bill all point to a heightened duty of care.
Failing to act brings serious consequences:
- Legal claims and compensation
- Uplifted tribunal awards for failure to prevent harassment
- Reputational harm and media coverage
- Higher staff turnover and reduced engagement
- Loss of clients or customers
Practical risk‑mitigation actions
Treat third‑party harassment as a core business risk:
- Embed it within your wider health & safety and HR risk frameworks
- Coordinate across departments: HR, operations, procurement, legal
- Keep detailed records of all steps taken: assessments, training, incidents, follow-ups
When to seek specialist support
If you lack internal capacity to review policies, deliver training or manage complex interactions with clients or contractors – Kingfisher can help.
We offer consultancy, training and 24/7 incident response support.
How Kingfisher Professional Services Can Help
Kingfisher is a trusted HR, employment law and health & safety partner. We help employers tackle third‑party harassment risks with practical, defensible solutions.
Our support includes:
- Reviewing and updating anti‑harassment policies
- Conducting tailored risk assessments of third‑party interactions
- Delivering training for managers and staff on recognising and responding to harassment
- Designing clear reporting and investigation frameworks
- Auditing supplier and client contracts to embed anti‑harassment clauses
- Providing expert consultancy and 24/7 support for incident management
Our approach is proactive, not just reactive. We help you move beyond compliance to create a workplace where everyone feels safe, regardless of who they interact with.
Conclusion
Third‑party harassment is a growing concern for UK employers. Whether it comes from customers, contractors or clients, the impact on staff wellbeing, business performance and reputation is real.
Legal duties are tightening. But even before reforms take full effect, taking early action is best practice.
Assess your risks. Update your policies. Train your team. Strengthen your culture. And seek expert help when needed.
Kingfisher Professional Services is here to support you. Speak to us today about how we can help you prevent third‑party harassment and protect your people.