What Every SME Needs to Know Before It’s Too Late
From October 2024, the Worker Protection (Amendment of Equality Act) Act 2023 introduced new responsibilities for UK employers – and if you run a small business or start-up, this change affects you.
In simple terms, the law now requires employers to take proactive steps to prevent sexual harassment in the workplace.
It is no longer enough to react after something happens – you must be able to show that you’ve taken reasonable preventative measures to protect your team.
What Does “Taking All Reasonable Steps” Mean?
For SMEs, this might sound vague – but in practice, it means having clear evidence that you’re building a safe and respectful culture.
This includes:
- A clear anti-harassment policy that’s accessible and regularly reviewed.
- Training for all staff and managers so everyone understands what’s acceptable and how to report concerns.
- Risk assessments to identify potential hotspots or vulnerabilities.
- Prompt, consistent action if an incident occurs.
If you can demonstrate that you’ve done these things, you’ll be far better protected if a claim ever arises – and more importantly, your employees will feel safer and more supported.
Why This Matters for SMEs
Larger organisations usually have in-house HR teams, legal budgets, and detailed policies. But smaller employers often assume:
“We’re a small team, that sort of thing wouldn’t happen here.”
Unfortunately, tribunals tell a different story. Even one inappropriate comment, ignored complaint, or untrained manager can lead to reputational damage, loss of trust, and costly claims.
Recent data from the UK Employment Tribunal shows that the average award for sex discrimination claims in 2023/24 was £53, 403 (MF Mac, 2024). Separate estimates suggest that the average cost of a sexual harassment tribunal case – including compensation and associated expenses can range from £27,000 to £45,000, and is often far higher once legal fees and management time are added (Culture Shift, 2024).
Under the new Worker Protection (Amendment of Equality Act) Act 2023, tribunals can now apply an additional 25% uplift in compensation if an employer is found not to have taken “all reasonable steps” to prevent harassment (Bindmans LLP, 2024).
For SMEs, this means that prevention isn’t just good practice – it’s financial and reputational protection.
How to Get Prepared Now
You don’t need to overhaul your entire HR setup – just start with the essentials:
- Review your policies. Make sure your harassment, grievance, and conduct policies are up to date and compliant.
- Deliver training. Even a short session for employees and managers goes a long way.
- Complete a harassment risk assessment. Identify where inappropriate behaviour might occur – and take steps to reduce the risk.
- Create a speak-up culture. Make it clear that everyone one has a voice and that issues will be handled fairly and confidentially.
How Catapult HR Can Help
At Catapult HR Services, I’ve created a Sexual Harassment Resource Pack specifically designed for SMEs. It includes everything you need to comply with the new law:
- A ready-to-use harassment policy.
- Employee and manger training slide decks.
- A workplace risk assessment template.
- Step-by-step guidance to help you protect your people and your business.
It’s practical, compliant, and easy to implement – no legal jargon, just clear HR you can actually use.
Final Thought
This new law isn’t just about ticking boxes. It’s about creating a culture where everyone feels safe, respected, and valued – the kind of workplace where good people want to stay.
And as the Christmas season approaches, with its parties, celebrations, and social gatherings, now is the perfect time to make sure your business is prepared. These moments of connection can also bring blurred boundaries and unintended risks – which is why I am offering my Sexual Harassment Resource Pack completely free of charge to help SMEs reinforce good practice and prevent issues before they arise.
It includes policies, templates, training slides and practical guidance you can put in place straight away – helping you create a safer, more respectful environment for everyone this festive season and beyond.
📩 Book your free 30-minute session to receive the pack and talk through how to tailor it for your workplace.
Email Rhonda@catapulthr.co.uk or visit www.catapulthr.co.uk to get started.
Sources
· MF Mac (2024). Employment Tribunal Award Statistics 2023/24. Retrieved from mfmac.com
· Culture Shift (2024). The Business Cost of Workplace Sexual Harassment. Retrieved from culture-shift.co.uk
· Bindmans LLP (2024). The Worker Protection (Amendment of Equality Act 2010) Act 2023 – Employer Responsibilities. Retrieved from bindmans.com