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.

Employers are not currently liable for harassment of employees by third parties, but this is due to change in October 2026. The Employment Rights Act 2025 provides for employers to be liable for third-party harassment of employees in the course of their employment, where the employer has failed to take all reasonable steps to prevent this.

Employers currently have a duty to take reasonable steps to prevent sexual harassment of their employees in the course of their employment. This includes prevention of harassment by third parties. This duty will be strengthened by the Employment Rights Act 2025, which will require employers to take all reasonable steps. Employers should ensure that they take steps to prevent any harassment of employees, for example when choosing a venue for a social event.