#MeToo AND BEYOND: LEGAL OBLIGATIONS FOR EMPLOYERS IN PREVENTING SEXUAL HARASSMENT

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Recent revelations have brought to light a troubling trend of high-profile individuals, including Al Fayed, Jimmy Savile, Jeffrey Epstein, and Harvey Weinstein, engaging in egregious acts of sexual harassment and abuse of power. These cases underscore the critical need to address workplace sexual harassment, spurred by the #MeToo movement and subsequent shifts in societal attitudes.

From 26 October 2024, employers will bear a new legal duty to prevent sexual harassment in the workplace. This duty represents a proactive stance, requiring employers to take pre-emptive measures to mitigate the risk of sexual harassment.

Key Changes and Obligations

Under current law, employers can escape liability for sexual harassment claims, committed by their employees if they can demonstrate that they had taken “all reasonable steps” to prevent the harasser from committing sexual harassment. The new legislation on the other hand, imposes a positive obligation on employers to anticipate scenarios and prevent sexual harassment proactively. The broad range of scenarios which could pose a risk should be considered in light of each particular type of workplace.

Implications for Private Households

Private households, due to their unique dynamics and environments, are particularly susceptible to risks associated with sexual harassment. Factors such as lone working arrangements, power differentials, and social interactions, often involving alcohol may necessitate careful consideration.

Employers in private households are now subject to heightened obligations under the new legislation. This includes ensuring respectful and professional interactions not only between the principal and employees but also within the broader household environment, including family members, friends, and guests.

Consequences of Non-Compliance

Failure to comply with these obligations may result in:

  • Increased compensation awards by up to 25% in cases where an Employment Tribunal finds a failure to prevent sexual harassment.
  • Potential action by the Equality and Human Rights Commission (EHRC), which could include requiring an action plan or entering into a binding agreement to effect change, with court injunctions as a possibility.
  • Severe reputational damage, particularly concerning for high-profile employers, given the media scrutiny surrounding allegations of sexual harassment.

Next Steps

  1. Conduct comprehensive risk assessments within the household environment. Consider household dynamics or how the behaviour of frequent visitors could create situations where harassment might occur.
  2. Update household handbook to include anti-harassment policy, ensure it is  communicated effectively to all family and staff members.
  3. Implement proactive measures, including setting expectations for respectful interactions and boundaries with family members and guests.
  4. Establish accessible reporting mechanisms for staff to report incidents of harassment promptly.
  5. Provide training for house managers or personal assistants on handling harassment issues effectively and in compliance with legal obligations.

By proactively addressing these requirements, private households can align with the new legal framework, safeguarding both their employees and their reputation in the process.on in the process.

KEY EMPLOYMENT LAW CHANGES – HOUSEHOLD STAFF

There are several important changes this year. Some are likely to affect households. Here is a quick summary of the key points to look out for:

1. Classification of workers. It is essential to know whether your staff are genuinely self-employed or whether they are workers or employees. In addition to previous laws and tax rules, which differ for each category, the new changes make it even more important to ensure you get this right, ideally from the start. 

2. ‘Irregular hours worker’ if you have staff whose number of paid contractual hours of work are wholly or mostly variable, or if you have a ‘part-year worker’ (someone who is contracted to work part of the year with periods of at least a week where they are not required to work and are not paid), their holiday accrual method will change. The new accrual method is calculated as 12.07% of hours worked in a certain pay period ie. per month. You will no longer be able to simply calculate their holiday entitlement as 5.6 weeks’ pa.  This will apply to holiday years beginning on or after 1 April 2024.

3. These two new types of workers can also be paid for their leave in the form of ‘rolled up holiday pay’ (providing holiday pay at the same time as basic pay) where it is calculated on the basis of 12.07% of all pay for work done in a pay period, paid at the same time as the worker is paid for the work done and itemised separately on the worker’s payslip. This will also apply to holiday years beginning on or after 1 April 2024. Moving to this method, will require contractual changes and therefore a process must be followed.

4. Industry norms governing household staff holidays are changing. Traditionally, contracts require staff to take leave when their services are not needed or when the family is away, with unused holiday days often lost without the option to carry them over. However, recent regulatory changes, in effect since January 2024, are challenging this industry norm. Under these new rules, if staff are not given sufficient notice and opportunity to use their holiday entitlement by the end of the year, they will no longer be barred from carrying it over to the next period. In such cases, staff will be able to carry over to the following year, up to 4 weeks’ leave. Also note if a worker has been miscategorised (ie. as self-employed when they were not) then they will also be able to carry over 4 weeks’ leave. Household managers may face challenges in managing this new responsibility while coordinating staffing needs around the family’s schedule.

5. Starting around September 2024, employees will gain the right to request a more predictable work pattern if their current contract lacks clarity on hours, days, or duration. For fixed-term contracts under 12 months, workers can request an extension or removal of the fixed term. Employees can bring a claim to an employment tribunal if their request is not handled reasonably or where due process is not followed. Detailed regulations are pending.

Next steps:

1. Assess your workforce to identify those affected by the new rules. Employers typically avoid specifying exact hours for household staff, opting instead for a general statement like “37.5 hours per week,” this approach could pose challenges for roles like chefs or chauffeurs who may be engaged on an ‘as-needed’ basis. Part-year workers, such as nannies or close protection, may also be impacted, as they may sometimes be hired for alternating blocks of time, like 2 months on and 2 months off.

2. Notwithstanding the fact that such arrangements already bring their own legal challenges in terms of working time and rest periods, these new rules will now require employers to scrutinise their contracts and bring their provisions in line with new legislation. You should seek advice before updating contracts, as certain procedures need to be followed before you can do so.

3. Review your household handbook to bring policies in line with the raft of new changes. Policies to be reviewed/drafted include holiday policy, right to request predictable work patterns, flexible working, family leave provisions, new carer’s leave and new duty to prevent sexual harassment in the workplace.  

Due to the upcoming reforms, employers can expect an uptick in requests, leading to higher administrative burdens and associated risks. To assist you we are pleased to be able to offer:

  • Household HR training on the new rights, processes and the risks involved in failing to address the new rules – we can place you on the list for the next forum.
  • A complementary 30-minute review of your existing relevant contract or Handbook or a 30 – minute call on any employment matter relating to your household staff.

Please email Sofia Syed on sofia.syed@meum.group for more information or to book a Teams call – view availability here: https://calendly.com/sofia-syed/30min

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