TL;DR: Too long, Didn’t read
The New Law: As of 30 October 2026, the Employment Rights Act 2025 makes employers legally liable for “third-party harassment” from customers, clients, and suppliers.
The “All Reasonable Steps” Rule: Your boss cannot just say “the customer is always right.” They must proactively protect you with measures like security, bodycams, or visible warning signs.
Uncapped Compensation: If a customer abuses you and your employer failed to take preventative steps, you can take them to an Employment Tribunal for uncapped compensation.
The 25% Uplift: If your employer breaches this preventative duty, the tribunal can add a 25% uplift to your final compensation payout.
It is the oldest, most toxic rule in retail and hospitality: “The customer is always right.” For decades, frontline workers have been forced to smile through verbal abuse, inappropriate comments, and harassment from the public because their bosses refused to intervene.
But the law has just drastically shifted the balance of power.
On 30 October 2026, a major update under the Employment Rights Act 2025 comes into force. For the first time, your employer is legally liable if a customer, client, or patient harasses you at work. Here is exactly what the new “third-party harassment” law means for your rights, and how to hold your employer accountable.
What is “Third-Party Harassment”?
Previously, it was notoriously difficult to sue your employer if the person abusing you didn’t actually work for the company.
The new law closes that protection gap. Under the updated legislation, employers must not permit a “third party” to harass their employees. A third party is broadly defined as anyone you come into contact with through your job who is not your employer or a colleague. This includes:
Customers and clients in shops, bars, or restaurants.
Patients or service users in healthcare and schools.
Delivery drivers, suppliers, or contractors.
Members of the public or visitors in shared spaces.
If one of these people harasses you based on a protected characteristic (such as your race, sex, age, sexual orientation, religion, or disability), your employer is now directly in the legal firing line.
The “All Reasonable Steps” Rule
Your boss can no longer shrug off abuse as “just part of the job.” To avoid being sued, employers must prove they took “all reasonable steps” to prevent the harassment from happening in the first place.
If you work in a high-risk environment (like a late-night convenience store or a busy pub), “reasonable steps” might legally require your boss to:
Hire dedicated security staff or extra door supervisors.
Provide personal safety equipment like alarms or install bodycams and CCTV.
Put up highly visible signs or posters explicitly warning customers that staff abuse will not be tolerated.
Ban abusive customers from the premises or terminate contracts with abusive suppliers.
If a customer hurls racist or sexist abuse at you, and your boss hasn’t put any of these preventative measures in place, the employer has permitted the harassment and broken the law.
Uncapped Tribunal Compensation
The financial penalties for employers who ignore this law are severe. If you are harassed by a third party and your boss failed to protect you, you can bring a claim to an Employment Tribunal.
Because this falls under discrimination and harassment law, compensation payouts are completely uncapped. Furthermore, if the tribunal finds that your employer breached their preventative duty to protect you, they can add a massive 25% uplift to your final compensation payout.
Frequently Asked Questions
Report it to your manager or HR department immediately, and do it in writing (via email or a formal incident report). The tribunal will want a clear paper trail showing that your employer was made aware of the harassment but failed to take action to stop it.
No. While the law heavily strengthens sexual harassment protections, the new third-party liability covers all forms of unlawful harassment based on protected characteristics, including disability, race, religion, age, and gender reassignment.
Yes. If your employer flat-out refuses to implement safety measures after you report severe third-party harassment, they may be fundamentally breaching your employment contract. This could give you grounds to resign and claim constructive dismissal alongside a harassment claim.
We are not employment solicitors. This guide explains your statutory rights under the Employment Rights Act 2025 and Equality Act 2010 amendments taking effect in October 2026. If you are facing severe workplace harassment, contact ACAS or Citizens Advice immediately for legal support.