Festive celebrations and harassment - the rules have changed.
Christmas parties are a chance to thank your team and celebrate the year. But they can also create risks of inappropriate behaviour, including sexual harassment.
Just because the party happens outside working hours or away from the office does not mean your responsibilities disappear. Work-related events need to be part of your approach to preventing harassment.
The rules change on 30 October 2026, making this the first Christmas party season under the strengthened requirements. Here’s what employers need to know and, more importantly, what to do before the party.
What has changed?
Since 26 October 2024, employers have had a legal duty to take reasonable steps to prevent sexual harassment at work under the Worker Protection (Amendment of Equality Act 2010) Act 2023.
From 30 October 2026, the Employment Rights Act 2025 strengthens that duty and introduces new liability for third-party harassment. There are two key changes.
1. You must take “all reasonable steps” to prevent sexual harassment
From 30 October 2026, employers must take all reasonable steps, not just some reasonable steps, to prevent sexual harassment in the course of employment.
A policy sitting in a folder will not be enough on its own. You need to identify the risks, take the steps that are reasonable for your business and be able to show what you have done. This is about preventing problems, not simply responding after something has happened.
Employees cannot bring a standalone tribunal claim just because an employer has breached this preventative duty. However, the Equality and Human Rights Commission can enforce it, and a tribunal can increase compensation by up to 25% where a successful sexual harassment claim is accompanied by a breach of the duty.
Practical steps include:
Review your sexual harassment, dignity at work and disciplinary policies.
Give employees and managers training that reflects the risks in your business.
Assess the risks at work events, including alcohol, travel and overnight stays.
Make sure everyone knows what sexual harassment looks like and how to report it.
Offer clear, accessible reporting routes and act promptly on concerns.
Keep records of incidents, the action taken and whether your preventative measures are working.
Further regulations may set out specific reasonable steps in future. For now, the right approach depends on your business, your workforce and the risks people face. Do not wait for more regulations before acting.
2. Third-party harassment is now an employer risk too
From 30 October 2026, an employer can be liable where a third party harasses an employee in the course of employment and the employer has failed to take all reasonable steps to prevent it. Unlike a breach of the standalone preventative duty, third-party harassment can form the basis of a tribunal claim.
Third parties include customers, clients, suppliers, contractors and other people employees deal with through work.
That matters if you invite clients, suppliers or other guests to your Christmas party. Think about the risks in advance, make expectations clear and have a plan for dealing with concerns on the night.
This applies to harassment covered by the Equality Act 2010, including sexual harassment and harassment related to relevant protected characteristics. It does not mean every instance of general rudeness or bullying automatically amounts to unlawful harassment.
What does this mean for the Christmas party?
A work Christmas party can still count as a work-related event even when it is held in a bar or restaurant after hours. Employers may already be responsible for harassment by their own employees, and the new third-party rules add another consideration.
Whether conduct is legally connected to employment will depend on the circumstances. The sensible approach is to set expectations and manage the risks rather than assume an event is outside work because it happens in the evening.
Sexual harassment can include unwanted sexual comments, touching, advances or messages. The legal test concerns unwanted conduct of a sexual nature that violates dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment, taking account of the circumstances.
Alcohol is not an excuse. Remind employees and guests that the same standards of behaviour apply at a work event as they do in the workplace.
What should you do before the party?
You do not need to cancel the celebrations. You do need a sensible plan. Check the following:
Have we updated our sexual harassment and workplace conduct policies?
Have we assessed the specific risks at the venue, including alcohol, transport and any overnight stays?
Have employees and managers had appropriate training and a reminder of expected behaviour?
Does everyone know who to contact if something happens, including on the night?
Have we considered guests, clients, suppliers and other third parties?
Can we show what steps we took, and do we have a plan to follow up on concerns?
If you cannot answer yes to these questions, get a plan in place now. A short risk assessment, a clear message to staff, and someone responsible for handling concerns can make a real difference.