The New Duty of Care: Preventing Third-Party Harassment under the 2026 Employment Rights Act

For UK tradespeople, the workplace isn't just a fixed office; it is a building site, a customer’s kitchen, or a busy commercial refurbishment. This unique environment brings you into contact with a wide range of people—from homeowners and delivery drivers to other sub-contractors.

The 2026 Employment Rights Act introduces a significant shift in how business owners must protect their staff. Specifically, the "New Duty of Care" regarding third-party harassment means that if you employ staff or apprentices, you are now legally required to take proactive steps to prevent them from being harassed by people outside of your organisation.

What is the 2026 Employment Rights Act?

The 2026 Employment Rights Act represents the most significant update to UK labour law in a generation. While it covers various areas like sick pay and unfair dismissal, one of the most critical changes for trade business owners is the strengthened protection against harassment.

Previously, the law was somewhat reactive. Under the new Act, the burden of proof shifts. Employers must now demonstrate that they have taken "all reasonable steps" to prevent harassment from occurring in the first place.

Understanding Third-Party Harassment in the Trades

In the context of a trade business, a "third party" refers to anyone who is not an employee of your company. This includes:

• Domestic customers and homeowners.
• Site managers or employees of a different contracting firm.
• Delivery drivers and couriers.
• General members of the public (if working in open spaces).

Third-party harassment occurs when one of your employees is subjected to unwanted conduct related to a protected characteristic (such as gender, race, or disability) that creates an intimidating, hostile, or offensive environment.

The New Proactive Duty of Care

The 2026 Act moves away from the "three strikes" rule of the past. You can now be held liable for a single incident of third-party harassment if it is found that you did not have preventative measures in place.

Identifying Potential Risks

Because tradespeople often work in private homes or on sites managed by others, you have less control over the environment. You must assess the risks: Is an apprentice working alone with a difficult client? Is a female electrician working on a site with a history of "banter" that crosses the line?

Implementing Preventative Measures

To comply with the 2026 Act, you should consider the following "reasonable steps":

1. Written Policies: Ensure your employee handbook explicitly mentions third-party harassment and outlines how staff can report it without fear of losing their job or being "taken off the tools."
2. Contract Clauses: Include a "Zero Tolerance" clause in your domestic and commercial contracts, stating that your staff have the right to work in an environment free from harassment and that work will cease if this is breached.
3. Staff Training: Briefly brief your team on what constitutes harassment and empower them to leave a site if they feel unsafe.
4. Reporting Mechanisms: Create a simple way for staff to flag "near misses" or uncomfortable interactions before they escalate.

The Financial and Legal Risks of Non-Compliance

Failing to meet this new duty of care isn't just a moral issue; it’s a financial one. If an employee takes a claim to an Employment Tribunal and wins, and it is proven that the employer neglected their proactive duty, the tribunal can apply a 25% uplift to the total compensation awarded.

With average awards for discrimination often reaching tens of thousands of pounds, a 25% penalty could easily cost a small trade firm upwards of £5,000 to £10,000 extra per claim, not including legal fees and the loss of reputation.

Frequently Asked Questions

Does this apply to me if I only hire sub-contractors? If the people working for you are genuinely self-employed "CIS" sub-contractors, the rules are different. However, if they work exclusively for you and are deemed "workers" or "employees" under the law, you owe them this duty of care.

What are "all reasonable steps"? There is no one-size-fits-all answer. For a sole trader with one apprentice, "reasonable steps" might just be a clear verbal briefing and a clause in the customer quote. For a larger firm with 50 staff, it would involve formal risk assessments and documented training.

Can I be sued if a customer makes a one-off comment? The Act requires you to have prevented it. If you have a policy in place, have trained your staff, and take immediate action when the comment is reported (such as speaking to the customer or removing the staff member), you are much less likely to be held liable.

Get Your Next Project Moving with Pricing Penguin

Staying compliant with new laws is part of running a professional business, but finding the right work is what keeps the lights on. Whether you are a homeowner looking for a compliant, professional pro, or a tradesperson looking to price up a job accurately, Pricing Penguin is here to help.

Pricing Penguin allows users to get an instant estimate for any home improvement project and connects them with skilled tradespeople who can get the job done right. Ensure your next project is priced fairly and handled by professionals who understand the latest standards.