A top employment lawyer is warning employers they could face unlimited damages if they fail to protect employees from sexual harassment by third parties, under new laws now in force.

Joan Pettingill, partner at hlw Commercial Lawyers, believes many bosses are unaware of the new rules – which came into force on 6 April – under which employers will be held responsible for repeated sexual harassment encountered by staff from clients, suppliers and other third parties.

She comments: ‘These changes should not be underestimated – every member of staff is now protected from sexual harassment by anyone they meet as part of their work.

‘This includes client meetings, networking events and dealings with external suppliers. Bosses will be expected to protect their staff from harassment – or face being held liable themselves.’

Significantly, the employee does not have to resign to bring an action and, if successful, there is no limit on compensation.

‘The courts will not accept protecting a major contract or important relationship as a defence in court – firms need to prepare now,’ she adds.