Agencies could pay for clients' sexual offences

Sexual harassment caused by their customers and suppliers could lead to recruitment agencies having to pay unlimited damages under new legislation.

Employers can face a tribunal if they fail to
Sexual harassment caused by their customers and suppliers could lead to recruitment agencies having to pay unlimited damages under new legislation.

Employers can face a tribunal if they fail to take reasonable steps to protect staff from third-party harassment once they have been warned. The new laws came into effect on 6 April after being rushed through two weeks previously.

Women and Equalities Minister Harriet Harman introduced the legislation to bring sexual harassment law into line with the European Equal Treatment Directive.

But critics of the new laws believe businesses haven't had enough time or information to prepare. A petition has been launched on the government's Parliamentary website.

A spokesman for the Government Equalities Office told Recruiter: "The protection of employees has long been implicit in the law. This has been made clear through guidance available since May 2006."

Joan Pettingill, partner at hlw Commercial Lawyers, believes many bosses are not prepared for the scope of the new rules:

"These changes should not be underestimated —every member of staff is now protected from sexual harassment by anyone they meet as part of their work.

"This includes client meetings, networking events and dealings with external suppliers. Bosses will be expected to protect their staff from harassment — or face being held liable."

The legislation threatens to cost "micro and small" businesses as much as £10m, according to an assessment by the Government Equalities Office.

Harman's department told Recruiter the effects of the legislation will vary. Smaller businesses may have to ban troublesome customers, while larger companies should display signs telling customers harassment will not be tolerated.

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