Before we start, I remind Members of the difference between Report stage and Third Reading. The scope of Report stage is amendments that have been selected. Third Reading will follow, and that covers the whole Bill, as amended. Members may wish to bear that in mind when they seek to catch my eye. The debate on the amendments is clearly and quite tightly defined.
With this it will be convenient to discuss the following:
Amendment 2, page 1, line 2, leave out “of the Equality Act 2010”.
This amendment is consequential on Amendments 3 and 4.
Amendment 3 , page 1, line 11, at end insert—
“(1C) Subsection (1D) applies if and so far as—
(a) a third party harasses B in the course of B’s employment,
(b) the harassment falls within section 26(1) (unwanted conduct related to a relevant protected characteristic) and not within section 26(2) or (3) (unwanted conduct of a sexual nature etc),
(c) the conduct constituting the harassment involves a conversation in which B is not a participant, or a speech which is not aimed specifically at B,
(d) the conversation or speech involves the expression of an opinion on a political, moral, religious or social matter,
(e) the opinion expressed is not indecent or grossly offensive, and
(f) the expression of the opinion does not have the purpose of violating B’s dignity or of creating an intimidating, hostile, degrading, humiliating or offensive environment for B.
(1D) For the purposes of subsection (1A)(b), A is not to be treated as having failed to take all reasonable steps to prevent the harassment solely because A did not seek to prevent the expression of the opinion.””
This amendment makes provision about when an employer can be held liable for the harassment of their employee by a third party. Its effect is that, where relevant conditions are met, employers will not be expected to prevent the expression of opinions in order to avoid liability.
As the House is aware, the Government have provided their full support for the Bill throughout its passage. We believe that fundamentally everyone should be able to thrive in the workplace, without fear of harassment or violence, and the Bill helps to ensure that. The Government remain committed to this important piece of legislation and we hope it will continue to garner the strong cross-party support we have seen in its previous stages.
However, as with every new piece of legislation put before the House, we must be alive to any potential unintended consequences of changes in the law and seek to address those, where possible. There are concerns that the extension of protections against workplace harassment set out in the Bill, while entirely necessary, could inadvertently worsen the chilling effect on free speech in the workplace.
At present, under the Equality Act 2010, employers can already be considered vicariously liable for the harassment of an employee in the course of their employment, unless the employer can show that they have taken all reasonable steps to prevent the harassment from happening. Clause 1 of the Bill extends employer liability to also cover acts of harassment committed by third parties, such as customers or clients, if the employer fails to take all reasonable steps to prevent that harassment.
In 2018, the employment tribunal case of Sule v. Shoosmiths found the employer liable for harassment, following an incident when two employees were overheard within earshot of another colleague. There are concerns that such cases may cause some employers to feel under a duty to end or modify such conversations, in order to prove that they have taken all reasonable steps to prevent harassment.
Consequently, as a result of the Bill, it was feared that employers may take unreasonable or drastic measures to avoid liability for harassment of their staff, particularly by third parties, to the extent that they will feel obliged to shut down conversations conducted in their workplaces. That could include pubs seeking to prevent certain topics of discussion on their premises or universities cancelling or not inviting speakers to speak on matters that are considered controversial.
This Bill cannot be allowed to fall. It will make a huge difference to the lives of many people in the workplace and will help to provide a cultural shift in attitudes towards appropriate behaviours at work. The Government’s amendment will not impinge on the protections from sexual harassment in the Bill, which will be so important to many women across the country—although of course sexual harassment is not faced only by women. I have also been assured that the amendment should not stop employers prohibiting targeted, indecent or grossly offensive conversations in the workplace, meaning employees will still be protected from third-party workplace harassment.
After taking advice from the Fawcett Society and the Equality and Human Rights Commission, I have concluded that I should get behind the Government’s amendments, because the overall aims of the Bill are so important and it is important that it is put into statute. As a Liberal, of course I do not want important political conversation to be shut down in the workplace; people should be free to express an opinion. However, we should be careful to ensure that expressing an opinion does not become a defence for harassment.
I was slightly disappointed that the Government tabled their amendments after Committee had concluded. That led to an enormous rush, and it was quite difficult to consult with everybody, but as I said, I have been assured and have concluded that it is the right way to progress with the Bill, and I support the amendment.
I urge the Government to listen to the concerns of the EHRC, which argues that the amendments could be more targeted and limited, and the National Alliance of Women’s Organisations, which worries that the amendments risk diluting these changes, which seek to make workplaces safer, fairer and more respectful not just for women but for everybody. I hope the Government will commit to ensuring the Bill’s smooth passage into law, working with all stakeholders who have voiced their concerns.
I rise to support the Bill and the amendments that the Government have tabled, with the support of the hon. Member for Bath (Wera Hobhouse). I recognise that, despite the Equality Act, we have a significant problem in our culture and our society: too many people are the victim of unacceptable and outrageous harassment, intimidation and abuse in their workplace, particularly sexual harassment. I recognise the powerful points that the hon. Member for Bath made. The problem arises largely because this harassment frequently goes unreported because it is ignored by employers.
We have a significant problem in the culture, so the question arises, what can the law do about it? I want to speak in support of the amendments that the Government have tabled but also raise some concerns about the drift in legislation that we have embarked on. I very much recognise the responsibility that employers have to set the atmosphere and to create the culture.
Order. At the start of the debate, I indicated very clearly the difference between Report and Third Reading. If the hon. Gentleman wishes to speak now, he must speak to the amendments. There will be an opportunity to go broader on Third Reading.
Thank you, Mr Deputy Speaker. I am speaking to the amendments, so I will be more specific.
Clause 1 is very helpful, and the amendments support it. I recognise that clause 1 as drafted would have protected Kathleen Stock, the professor at the University of Sussex who was the victim of harassment and intimidation at her university, when the university did not step in to support her. The problem is that it would have also prevented Kathleen Stock from speaking at other universities, because those universities would have insisted that their employees were the victim of harassment or abuse by her presence. We have a real problem with universities gold-plating the Equality Act and other legislation, and their excessive invocation of the Equality Act should not be happening. The problem I have with the clause as drafted is that it would not only have justified but could have necessitated the sort of censorship that we need to be concerned about.
I recognise that the Bill presents a particular challenge to public-facing employers, because it seeks to prevent intimidation on the part of not only fellow employees but members of the public. I am concerned about the concept of “reasonable steps” that employers are expected to take. I am going to make a few absurd suggestions, and I would be interested to hear the Minister’s response to whether the amendments will indeed prevent such scenarios.
Will pubs be expected to put up signs saying, “No banter allowed” in order to take reasonable steps to prevent harassment? The three-strikes rule in the 2010 Act that was repealed in 2013 ensured that what was prohibited was a course of conduct that was harassing. Now employers are expected to head off at the pass any possibility of harassment, because they are liable at the first instance of harassment. Will pubs be required to proactively prevent anything that might constitute harassment? The fact is that a censorious spirit has entered the soul of organisations that hold power and responsibility in our country. We have seen a somewhat absurd instance of that this week with the Welsh rugby stadium banning the singing of the song “Delilah” and the local police chief tweeting his support, as if it is his job to determine what fans sing.
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Let me put this absurd suggestion to the Minister: what if the crowd at a football match were to chant or to shout, “You’re blind,” at the ref, and a partially sighted steward, hot-dog seller or some other employee of the stadium were to hear that? Surely they would be entitled to at least make a claim under this Act. If not, I would be grateful for that confirmation. I very much applaud and recognise the amendment that has been introduced, and I wish to finish by confirming my support. There is a whole list of criteria that is now required for the Act to be enforceable. I am not totally clear about that, but I think I heard the Minister list all the criteria.
Perhaps I could advise the hon. Gentleman that the EHRC will give guidance to employers to help them get through these issues. We are waiting for the guidance, which will be published shortly. I advise him to look at that guidance.
I thank the hon. Member for that advice. I will look forward to that guidance, as I have great faith in that commission under its present chair to make sensible guidance.
For the sake of clarity, is it the case that the list of criteria—the eligibility for the law to be triggered—are individual criteria, so that if any of these criteria are not met, then the law does not apply? Or is it that every single one of them must be met for an employer to be exempt from the operations of the Act? I fear that if they are all required to be met, that is a very high bar for employers to get over, and I would rather it was just any of them being met.
I end by expressing my concern about how, increasingly, the spirit of our law is simply declaratory. We decide that something is bad in our society and we pass a law saying that it is bad and that it should not happen, and we expect that to work. What we need to consider in drafting and passing legislation is the actual effect of the law on the people who will be responsible for enforcing it, given the culture and the effect of the culture on the law. The law is a teacher, and we must be aware of the attitudes, the spirits, the fears and the politics, including the increasingly transgressive politics, of people with power our country’s public life and about how they will use the laws that we are passing. In future times, what will be done with laws such as this? I would be grateful to the Minister if she could reassure me on those points.
I thank my hon. Friend the Member for Devizes (Danny Kruger) for raising those points. The amendments make the case that any harassment must be directed to the employee; it cannot simply be third-party conversations that are overheard. To his specific point, all the conditions must be met for the amendment to be triggered. I recognise that he says that that is a high bar, but that is the case.
Turning to my hon. Friend’s examples, such as whether banter will be banned, I gently say that if it is directed at the employee, that can be sexual harassment. One person’s banter is another person’s harassment, and we need to be mindful of that. The other example that he gave was of a footballer: if the crowd are singing a song or directing a chant, that can be targeted harassment. We have multiple examples of footballers being targeted either because of their race or their colour. That is not acceptable and football clubs take action on that now.
As the hon. Member for Bath (Wera Hobhouse) said, guidance will be issued. We understand that it will be difficult for employers and we know that they need clarity. That is why we have tabled these amendments today. Third-party conversations that are not directed at an employee will be exempt, as is the case if all the conditions in the amendment are met. Direct harassment of an employee, whether that is banter or a song at a football match, is still harassment. That is why we need the Bill.
Amendment 1 agreed to.
Amendments made: 2, page 1, line 2, leave out “of the Equality Act 2010”.
This amendment is consequential on Amendments 3 and 4.
Amendment 3 , page 1, line 11, at end insert—
“(1C) Subsection (1D) applies if and so far as—
(a) a third party harasses B in the course of B’s employment,
I beg to move, That the Bill be now read the Third time.
The Bill has a simple aim: to create respectful workplaces free from harassment where employees feel valued and supported. Today, we can move a step closer to that by creating an employer’s responsibility to clamp down on harassment. I start by thanking the Fawcett Society and the Government Equalities Office officials who have supported me throughout the Bill’s progression. My thanks go also to the Women and Equalities Committee, whose 2018 report into workplace harassment set the wheels in motion for the Bill. There has been vital cross-party support to ensure this important legislation progresses. I hope that spirit of consensus continues today. It will send a clear signal from us here in Parliament that workplace harassment must end.
The Bill focuses on strengthening protections against workplace sexual harassment and introduces protections against more general harassment by third party actors. Workplace sexual harassment is widespread and under-reported. It continues to be a stain on our society. Half of all British women and a fifth of men have been sexually harassed at work or place of study. A TUC survey suggested 79% of women did not report their experience of sexual harassment. Too many people suffer in silence partly because they feel unable to report it. Reporting can have severe career and reputational implications. Employers must shoulder some responsibility for that. The Equality and Human Rights Commission found that in nearly half of cases where employees made a report, the employer did nothing, minimised the incident, or placed the responsibility on the employee to avoid the harasser.
The impact of harassment in the workplace has devastating consequences on health, morale, and, last but not least, performance. Current harassment laws mean employers often adopt individualised responses to institutional problems. This allows employers to minimise harassment, causing confusion around appropriate responses. For things to improve, we must shift the focus from redress to prevention. The Equality and Human Rights Commission found in 2018 that a minority of employers had effective processes in place to prevent and address sexual harassment. Employers should have a moral and legal obligation to take all reasonable steps to stop sexual harassment from happening. The Bill will force them to act.
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“(2) In section 109 (liability of employers and principals), after subsection (4) insert—
‘(4A) Subsection (4B) applies if and so far as—
(a) A harasses another employee (C) in the course of C’s employment,
(b) the harassment falls within section 26(1) (unwanted conduct related to a relevant protected characteristic) and not within section 26(2) or (3) (unwanted conduct of a sexual nature etc),
(c) the conduct constituting the harassment involves a conversation in which C is not a participant, or a speech which is not aimed specifically at C,
(d) the conversation or speech involves the expression of an opinion on a political, moral, religious or social matter,
(e) the opinion expressed is not indecent or grossly offensive, and
(f) the expression of the opinion does not have the purpose of violating C’s dignity or of creating an intimidating, hostile, degrading, humiliating or offensive environment for C.
(4B) For the purposes of the defence in subsection (4), B is not to be treated as having failed to take all reasonable steps to prevent the harassment solely because B did not seek to prevent the expression of the opinion.’”
This amendment makes provision about when an employer can be held liable for the harassment of their employee by another employee. Its effect is that, where relevant conditions are met, employers will not be expected to prevent the expression of opinions in order to avoid liability.
Therefore, the Government have tabled an amendment to the Bill to clarify to employers what is expected of them under the Bill, and the wider Equality Act 2010. We want the legislation to be clear, but while employers will be expected to take action against workplace harassment, those actions should fall short of prohibiting the conversation of others, subject to certain limitations that I will set out shortly.
The amendment is designed specifically to signal to employers and employment tribunals that in certain harassment cases, where the conduct concerns conversations where the claimant was not a participant, employers will not be expected to prevent the expression of opinion in order to avoid liability. Examples of cases where the claimant is not a participant could include overheard conversations or speeches not made directly to the claimant.
In those cases, an employment tribunal will not treat an employer as having failed to take all reasonable steps to prevent workplace harassment simply because they did not seek to prevent the expression of the opinion that formed part of the harassment claim. In other words, the amendment sets a ceiling on what can be considered reasonable steps for an employer. It does not seek to define what reasonable steps employers should take, but carves out one particular step that they are not expected to take.
The amendment will apply to cases of employee-on-employee harassment and cases of third-party harassment, with changes being made to both section 109(4) and section 40 of the Equality Act 2010 through amendments 3 and 4. Amendments 1 and 2 are simply consequential on amendments 3 and 4. However, a number of conditions all need to be met in order to trigger the amendment. Members can see those set out clearly in a list in proposed new subsections (1C) and (4A) in amendments 3 and 4 respectively. I hope Members will have the document to hand, as I will address each of the conditions in turn.
First, the amendments will apply only where the harassment is related to a protected characteristic and has taken place in the course of the claimant’s employment. That means it will not apply to cases of sexual harassment or less favourable treatment because one has either submitted or failed to submit to sexual harassment, or harassment related to sex or gender reassignment, as described in section 26 of the Equality Act 2010. Secondly, as I have set out above, the harassment must involve a conversation in which the claimant is not a participant or a speech that is not specifically aimed at them. Thirdly, the conversation or speech must contain the expression of an opinion on a political, moral, religious or social matter. That would exclude, for example, opinions on individual employees. Fourthly, the opinion expressed must not be indecent or grossly offensive.
Finally, the harassment must not be intentional. Under the Act, harassment is defined as unwanted conduct that has the purpose or effect of creating a hostile environment or violating a person’s dignity. The amendment will capture only cases where the harassment was not found to be intentional, as per the definition in section 26(1) of the 2010 Act. These limitations are intended to ensure that employers are not discouraged from taking steps to prevent extreme conduct, such as racial slurs or rape jokes, under the amendment. The Government are clear that such behaviour is not acceptable. The amendment is about protecting legitimate and appropriate workplace discussions, not targeted and grossly offensive remarks, or any form of sexual harassment. I should also be clear that the amendment will not affect the new duty on employers to take all reasonable steps to prevent sexual harassment in the workplace, as introduced in clause 2 of this Bill, which remains a key tenet of the Bill, as originally drafted.
To conclude, let me reiterate the Government’s support for the Bill and its important provisions. The employer duty and third-party harassment protections introduced by clauses 1 and 2 deliver against two Government commitments made in our national strategy for tackling violence against women and girls. They have widespread public and stakeholder support, and will ultimately improve working culture across this country. Amendment 1 does not detract from that. It provides what we believe is a necessary clarification of the expectations that this Bill and the wider Equality Act place on employers in relation to workplace harassment. We hope it will assist employers and employment tribunals in the accurate implementation of the new legislation and, in doing so, safeguard our vital right to free speech. The Government greatly welcomes the fact that the Bill’s sponsor, the hon. Member for Bath (Wera Hobhouse), has signed her name in support of the amendment. We hope that other Members will agree with our making this change and see the Bill on to the statute book as soon as possible.
(b) the harassment falls within section 26(1) (unwanted conduct related to a relevant protected characteristic) and not within section 26(2) or (3) (unwanted conduct of a sexual nature etc),
(c) the conduct constituting the harassment involves a conversation in which B is not a participant, or a speech which is not aimed specifically at B,
(d) the conversation or speech involves the expression of an opinion on a political, moral, religious or social matter,
(e) the opinion expressed is not indecent or grossly offensive, and
(f) the expression of the opinion does not have the purpose of violating B’s dignity or of creating an intimidating, hostile, degrading, humiliating or offensive environment for B.
(1D) For the purposes of subsection (1A)(b), A is not to be treated as having failed to take all reasonable steps to prevent the harassment solely because A did not seek to prevent the expression of the opinion.”
This amendment makes provision about when an employer can be held liable for the harassment of their employee by a third party. Its effect is that, where relevant conditions are met, employers will not be expected to prevent the expression of opinions in order to avoid liability.
Amendment 4, page 1, line 11, at end insert—
“(2) In section 109 (liability of employers and principals), after subsection (4) insert—
‘(4A) Subsection (4B) applies if and so far as—
(a) A harasses another employee (C) in the course of C’s employment,
(b) the harassment falls within section 26(1) (unwanted conduct related to a relevant protected characteristic) and not within section 26(2) or (3) (unwanted conduct of a sexual nature etc),
(c) the conduct constituting the harassment involves a conversation in which C is not a participant, or a speech which is not aimed specifically at C,
(d) the conversation or speech involves the expression of an opinion on a political, moral, religious or social matter,
(e) the opinion expressed is not indecent or grossly offensive, and
(f) the expression of the opinion does not have the purpose of violating C’s dignity or of creating an intimidating, hostile, degrading, humiliating or offensive environment for C.
(4B) For the purposes of the defence in subsection (4), B is not to be treated as having failed to take all reasonable steps to prevent the harassment solely because B did not seek to prevent the expression of the opinion.’”—(Wera Hobhouse.)
This amendment makes provision about when an employer can be held liable for the harassment of their employee by another employee. Its effect is that, where relevant conditions are met, employers will not be expected to prevent the expression of opinions in order to avoid liability.
Third Reading
Clause 2 will impose a new duty on employers to take all reasonable steps to prevent their employees from experiencing workplace sexual harassment. It will not require employers to do anything substantially more than what they already should be doing to avoid legal liability for harassment carried out by their employees. However, if employers have failed to take those actions, they could face further enforcement action through an uplift to the total compensation awarded at an employment tribunal, or through the EHRC’s strategic enforcement. That should encourage employers to improve their workplace practices and culture to discourage sexual harassment.
The new duty will operate through dual enforcement. First, the EHRC may take enforcement action for a breach or suspected breach of the duty under its strategic enforcement policy. That would mean employees would be able to inform the EHRC of any concerns without necessarily having to take forward legal action against their employers themselves. Secondly, the employer’s duty will be enforceable by the employment tribunal in individual cases. Where the employment tribunal has found in favour of an individual claim of sexual harassment and has ordered compensation to be paid, the tribunal will examine whether and to what extent the duty has been breached. Where a breach of the duty is found, tribunal judges will have the power to order an uplift of up to 25% of the compensation.
The Bill will also introduce explicit protections against third-party harassment in the workplace—this is where the amendments are most relevant. Clause 1 would make employers liable for the harassment of their staff by third parties such as customers and clients, where they have failed to take all reasonable steps to prevent such harassment. These protections will apply to all acts of third-party harassment in the workplace, not just sexual harassment. Once again, there will be a system of dual enforcement.
A claim of third-party harassment could be brought after a single incident of harassment. That replaces the previous three strikes formulation, whereby employers needed to know of two previous incidents of third-party harassment before they could be considered liable. However, liability can arise only if an employer has failed to take all reasonable steps to prevent harassment. The Government Equalities Office will support the EHRC in creating a statutory code of practice on sexual harassment and harassment in the workplace, to support employers to implement the changes that will come into force 12 months after Royal Assent.
There is plenty of opportunity for employers to make themselves well informed of the changes and ensure that they can implement them. There will be a consultation as well. There is plenty of time to further consider people’s concerns on all sides. I encourage all Members to make themselves very knowledgeable about the changes and the guidance that will be provided shortly.