If you’re reading this article, it’s likely that your business, to some extent, relies on suppliers, contractors or customer-facing arrangements. You may have heard of various changes that have been brought in, or will be introduced in the near future, under the Employment Rights Act 2025 (ERA 2025).
There are two changes arriving in October 2026 that you should pay particular attention to as a business operating in a supply chain. They affect when you are liable for harassment, what you are expected to have done to prevent it and how long a claimant has to act. Taken together, they have real implications for the contracts that hold your supply chain together.
Key Employment Rights Act changes in October 2026
Third-party harassment is back
From 30 October 2026, employers will once again be liable for third-party harassment of a worker where the harassment occurs in the course of employment.
As a reminder, harassment is unwanted behaviour related to any protected characteristic (that is, age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation) that has either the purpose or effect of violating the worker’s dignity or creating an intimidating, hostile, degrading, humiliating or offensive environment for that individual.
As the employer, you must take all reasonable steps to prevent the harassment from taking place.
Time limits are doubled
From 1 October 2026, employees will have a full six months, twice the current three-month window, to lodge most types of claim at an Employment Tribunal. This significantly extends the period during which a disgruntled or departing employee can decide to take action against you, meaning employers will face a much longer tail of litigation risk after any workplace incident or dismissal.
What this means for your business
Liability for third-party harassment can be an onerous obligation for a business operating in a supply chain. Third parties could include, for example, delivery drivers transporting supplies, visiting contractors, customers on your site and even members of the public if you operate in shared spaces.
It’s not enough to have a written policy confirming that you take a zero-tolerance approach to harassment; you must take active steps to stop harassment from taking place.
Similarly, the increased length of time employees have to bring a claim could have a significant practical effect. Your business will face a longer period of exposure, and incidents that might previously have gone unchallenged will now have more time to surface before an employee is time-barred from bringing a claim.
Changes to make to your contracts
The standard clauses that have formed part of your contracts for some time may no longer be adequate to protect your business in light of these changes. Equally, having the right contracts is only part of the picture.
To demonstrate that you have taken ‘all reasonable steps’ to prevent third-party harassment, you need practical, proactive measures embedded across your operations.
Here are the key steps to take now:
- Update your anti-harassment policies to address third-party harassment specifically, and ensure they cover reporting procedures, investigation processes and the support available to affected workers. A policy that sits unread in a handbook will count for nothing at Tribunal
- Carry out targeted risk assessments. Map out every point at which your workers interact with third parties, from delivery drivers and visiting contractors to customers and members of the public, and assess the harassment risks at each touchpoint. Pay particular attention to lone working, night shifts and roles where staff have limited ability to remove themselves from a situation. Document your findings and review them regularly
- Train your people on a regular basis. All staff should receive training on what third-party harassment looks like, how to report it and what support is available. Managers and supervisors need additional training on how to respond to complaints, escalate incidents and intervene safely. One-off training will not be enough; schedule refresher sessions at least annually and after any significant incident
- Put physical safeguards in place. For customer-facing or site-based roles, consider practical protective measures including CCTV in high-risk areas, bodycams, personal safety alarms, well-lit working environments, clear lone-working protocols and visible signage warning that harassment of staff will not be tolerated. These measures deter third-party misconduct and demonstrate tangible preventive action to a Tribunal
- Set behavioural expectations for third parties. Issue codes of conduct or behavioural standards to suppliers, contractors and clients who have contact with your workforce. Make it clear, in writing and at induction, that harassment of your staff will result in the individual being removed from your site and may lead to termination of the commercial relationship
- Review your contractual protections. The combination of wider duties and a longer limitation period increases the potential cost of a claim. Update your indemnity provisions to reflect this extended exposure, check your claims notification obligations so that you understand your reporting requirements and secure your rights to audit the other party’s anti-harassment policies to satisfy yourself, and demonstrate to a Tribunal, that you are taking all reasonable steps to prevent harassment
- Establish clear and accessible reporting channels. Workers must know exactly how to report harassment by a third party, and they must feel safe doing so. Consider multiple reporting routes, such as a direct line manager, HR team, anonymous hotline or designated harassment contact, and make sure the process is clearly communicated
- Designate a senior leader with responsibility for your anti-harassment strategy. This sends a clear message that preventing harassment is a business priority, not just a compliance exercise.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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