The legal landscape around workplace sexual harassment is changing rapidly, and 2026 will be a pivotal year. For professional services firms – where culture, reputation, and client relationships are critical – the new rules introduce significant legal, operational, and cultural obligations.
Here’s a clear breakdown of what’s changing, why it matters, and what your firm should be doing now.
1. A Shift From “Reasonable” Steps to “All Reasonable” Steps
Under changes taking effect in October 2026, employers will be required to show that they have taken all reasonable steps to prevent sexual harassment – not just some or broadly “reasonable” measures.
This is a substantial uplift in expectations. Employers must be able to evidence a proactive, comprehensive approach to preventing harassment before it happens. In practice, this goes beyond policies and training – it requires active risk assessments, cultural initiatives, monitoring, and meaningful follow‑through.
Why this matters for professional services firms:
- Client‑facing and high‑pressure environments carry elevated risks.
- The tribunal uplift in compensation can reach 25% if the firm cannot prove it met this higher threshold.
- Regulatory bodies and clients increasingly expect robust safeguarding measures.
2. Sexual Harassment Becomes a Protected Whistleblowing Category
From 6 April 2026, disclosures about sexual harassment will explicitly count as protected disclosures under whistleblowing legislation.
This means:
- Workers who speak up about harassment will be protected from detriment.
- Employees will gain protection from unfair dismissal linked to such disclosures.
This removes historic barriers that discouraged people from reporting concerns.
Professional services impact:
With flatter structures, junior staff may fear reputational harm or career impact if they complain. These reforms help shift the power balance and require firms to ensure whistleblowing channels are safe, confidential, and trusted.
3. Liability for Harassment by Clients and Third Parties
From October 2026, firms will be directly liable for sexual harassment carried out by clients, customers, contractors, or other third parties if they have not taken all reasonable steps to prevent it.
This is especially relevant to professional services, where:
- Staff frequently work on‑site at client premises
- Client interactions are frequent, intensive, and sometimes unsupervised
- Vendors, consultants, and intermediaries may be involved in projects
What this means practically:
You must take steps such as:
- Clear client‑facing anti‑harassment statements in engagement letters
- Training staff on boundary‑setting and escalation
- Documenting action taken when concerns arise
4. Non‑Disclosure Agreements (NDAs) Will Lose Their Force
The Employment Rights Act reforms will render most NDAs unenforceable where they attempt to restrict workers from raising concerns or making disclosures about sexual harassment. Implementation dates are forthcoming, but firms should begin preparation now.
What to review now:
- Settlement agreements
- Employment contracts
- Whistleblowing, grievance and dignity‑at‑work policies
Professional services firms – where reputation management has historically made NDAs common – must now pivot toward transparency and safe reporting environments.
5. Enforcement Is Already Strengthening
Regulators have become more assertive. The EHRC has used legally binding agreements – such as those with Lidl and McDonald’s – to enforce compliance where employers failed to prevent harassment.
What this means for your firm:
Expect more scrutiny and a higher standard of proof when demonstrating compliance. A policy “on a shelf” will no longer be enough.
6. Rising Reporting Volumes Highlight Cultural Risk
Calls to Acas about workplace harassment rose by 39% in the first half of 2025 compared with the previous year.
This suggests:
- A growing willingness to report issues, or
- A rise in incidents, or both.
Either way, professional services firms must prepare for more internal complaints – and ensure they are handled consistently, lawfully, and sensitively.
7. Practical Steps Your Firm Should Take Now
A. Audit Your Current Anti‑Harassment Framework
- Review policies, training, reporting mechanisms, and client engagement workflows.
- Conduct risk assessments tailored to professional services environments.
B. Update Reporting, Whistleblowing and Investigation Frameworks
- Ensure sexual harassment qualifies explicitly for whistleblowing protection.
- Strengthen internal investigation processes.
C. Embed Prevention Into Culture
- Training must be regular, meaningful, and role‑specific (e.g., partners, junior lawyers/accountants/advisers, consultants).
- Leadership must model behaviours and reinforce expectations.
D. Manage Client Interactions
- Update engagement terms to communicate zero‑tolerance expectations.
- Train staff on handling inappropriate behaviour from third parties.
E. Review Your NDA Use
- Remove clauses that could mislead workers about their rights.
- Ensure your templates align with the upcoming legal framework.
Conclusion
The upcoming sexual harassment reforms represent a major shift from reactive compliance to proactive, evidence‑based prevention. For professional services firms – where workplace culture, client relationships, and reputational capital are vital – the implications are especially significant.
By acting now, firms can reduce future risk, meet regulatory expectations, and foster a safer, more inclusive workplace for all staff.