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Preparing a business-lasting power of attorney

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man signing a business-lasting power of attorney

We are all familiar with lasting powers of attorney, which allows individuals to appoint an attorney to manage their personal affairs if they cannot do so themselves. A business-lasting power of attorney operates on the same basis. It is a document that appoints an attorney to deal with your business affairs and make decisions if you are incapacitated and can no longer manage the business yourself. That may include decisions about your business finances, operations and legal matters.

Why is it essential to have a business-lasting power of attorney?

A business-lasting power of attorney (LPA) is essential because it ensures business continuity and smooth continued operation should the owner be temporarily or permanently unable to manage the business. It allows the attorney to make decisions, process and pay wages, and sign or enforce contracts even though the business owner is incapacitated.

Who can benefit?

Sole traders and single-director limited companies benefit most from a business-lasting power of attorney. A partner in a partnership or a director in a limited company (with more than one director) may also benefit. However, the terms of the partnership agreement or the articles of association may contain provisions for dealing with the incapacity of a partner or a director, rendering a business-LPA unnecessary.

How does a business-lasting power of attorney differ from a personal-lasting power of attorney?

A business-lasting power of attorney focuses on the donor’s business. The donor is the person who grants the business Power of Attorney. A personal-lasting power of attorney will deal with the donor’s personal affairs. In contrast, a business-LPA focuses on the donor’s business needs. These include business continuity, finance management, contract negotiation, completion and enforcement and general business operations. The business-lasting power of attorney can be tailored to meet the specific needs of the donor’s business.

Compliance with the Mental Incapacity Act 2005

A business-lasting power of attorney must comply with the Mental Capacity Act 2005‘s terms, which set out the specifics regarding the donor’s capacity. Section 9 of the Act and subsequent sections deal with the requirements for creating lasting powers of attorney, appointing attorneys (“donees”), restrictions, scope, and revocation.

Communicate the existence of the business-lasting power of attorney to stakeholders

It is essential to inform others involved in the business’s management about the existence of the business-lasting power of attorney. Notifying the business’s bank and professional advisers may also be advantageous. As a result of the grant of the business-lasting power of attorney, management will be confident of the business’s continuity.

Some examples of the application of a business-lasting power of attorney

Unexpected Incapacity

Situation

You, the business owner, become incapacitated due to an accident or illness, rendering you unable to manage your business affairs.

Business-LPA Solution

Your attorney can step in to handle essential tasks, such as signing cheques, paying invoices, managing bank accounts and making important business decisions, preventing disruption and financial losses.

Example

The attorney can authorise the payment of salaries, service business loans, or sign contracts on your behalf.

Business Continuity

Situation

If you are a shareholder or director in a company or a partner in a partnership and you become incapacitated, should the partnership agreement or articles of association omit a procedure for dealing with incapacity?

Business-LPA Solution

The BLPA allows your attorney to act on your behalf, ensuring the business can operate smoothly without delays or complications.

Example

The attorney can manage business assets, handle tax affairs, or potentially hire or remove employees in coordination with and with the consent of other partners or co-directors.

Travel and Absence

Situation

You are a business owner who frequently travels and finds it challenging to manage certain aspects of the business while abroad.

Business-LPA Solution

Your attorney can handle business matters while you are away, allowing you to focus on other aspects of your life without worrying about the business.

Example

The attorney can manage business contracts, deal with clients, or attend meetings on your behalf.

Removing a Partner or Director

Situation

A partner or director in your company becomes incapacitated and cannot consent to being removed.

Business-LPA Solution

Suppose the partnership agreement or articles of association omit provisions dealing with incapacity. In that case, a BLPA may allow your attorney to remove the incapacitated partner or director, preventing potential issues and ensuring the smooth running of the business.

Example

The attorney can take the necessary steps to remove the incapacitated partner or director, ensuring the business can operate effectively.

If you are considering drawing up a business-lasting power of attorney, it is critical that you seek legal advice. Legal advice will ensure compliance with the most up-to-date legislation and that the power of attorney contains provisions tailored to your business and operational needs. So, contact James McMullan today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Can you make a WhatsApp will?

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A picture of a family who might consider making a WhatsApp will

Making a will is one of the most important steps anyone can take to protect their estate. But with the rise of messaging apps, many ask: can you make a WhatsApp will? In England and Wales, the law governing valid wills remains rooted in the Wills Act 1837, long before smartphones came into existence. Below, we unpack the key legal requirements for making a will, how digital tools fit in, and whether a WhatsApp will might ever be recognised.

What makes a will valid?

Under the Wills Act 1837, a valid will must satisfy four critical requirements:

Age and capacity

  • The testator must be at least 18 years old.
  • The testator must be of sound mind and mental capacity.

Written document

  • The will must be in writing, and the testator must sign it (or, in certain circumstances, it can be signed by another person in the testator’s presence).

Witnessing formalities

  • The testator must sign the will in the presence of two witnesses or acknowledge their signature in the presence of two witnesses.
  • Those two witnesses must sign the will in the testator’s presence.

These key ingredients are impossible to replicate in a digital world, not least WhatsApp.

Digital adaptations and remote witnessing

During the COVID-19 lockdown, emergency legislation allowed wills to be witnessed via video link—an important step toward modernising wills law. Yet this change still requires a written document signed on paper; the witnessing conducted remotely simply alleviates in-person constraints.

The Law Commission’s electronic wills initiative

Since 2017, the Law Commission has explored electronic wills, pausing its consultation between 2019–2022 and resuming it in October 2023. The goal is to design a framework that:

  • Allows fully digital will execution
  • Preserves safeguards against fraud
  • Potentially introduces a new Wills Act for electronic wills

The consultation closed in December 2023, and as of today, no legislation has formally legalised pure WhatsApp will execution.

Will WhatsApp wills ever be valid?

At present, there’s no indication that a WhatsApp will—a chat message chain—could satisfy statutory requirements because of:

  • Fragmentation: WhatsApp threads lack a single, immutable document.
  • Deletion Settings: Chats can auto-delete, undermining document permanence.
  • Authentication & Witnessing: No reliable built-in method to witness or authenticate signatures.

Until new electronic-wills legislation passes, traditional or hybrid (paper signed and video-witnessed) methods remain the only way to ensure validity.

For tailored advice on electronic wills, remote witnessing, or updating your estate planning in the digital age, contact James McMullan at RIAA Barker Gillette (UK) LLP. He can guide you through current requirements.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Supporting neurodiverse people in family law matters

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neurodiversity image of a head with a jigsaw puzzle

Neurodiversity refers to the natural differences in how people think, learn and process information. It includes conditions like autism, ADHD, dyslexia, dyspraxia and other neurological variations. These differences can create challenges when navigating complex legal processes, especially in family law.

Family law matters such as divorce, child arrangement disputes, and domestic issues can be overwhelming for anyone. However, these challenges can be even more significant for neurodiverse people due to communication, emotional regulation, and organisational differences. At RIAA Barker Gillette (UK), our family team understands and adapts to your needs, making the legal process far more accessible and less stressful.

Neurodiversity challenges in family law cases

Neurodivergent people experience the world in unique ways, and certain aspects of the legal system can be particularly difficult for them.

Communication

Some neurodivergent people may struggle with verbal communication or prefer written communication. Legal language can also often be a source of confusion.

Emotional stress and anxiety

Family law cases can be emotionally draining, and neurodivergent people may experience heightened stress or anxiety. Changes to routines, uncertainty and conflict can be particularly distressing. Some may struggle with emotional regulation, making it harder to remain calm in high-pressure situations such as court hearings.

Organising and decision-making

Many neurodivergent people, particularly those with ADHD or executive function challenges, find it hard to manage paperwork, remember deadlines, or keep track of legal procedures. They may also struggle with making quick decisions, especially under pressure.

Vulnerability and manipulation

In cases involving domestic abuse or coercive control, neurodivergent people may be more at risk. They might struggle to recognise manipulative behaviours or feel pressured into agreements that may not be in their best interest.

How our family lawyers can support neurodiverse clients

Our family lawyers go the extra mile to accommodate the unique needs of clients with neurodiversity to ensure fair and effective representation. We provide:

Tailored communication that works for you

We use plain, simple language and avoid legal jargon where possible. Instead of solely relying on in-person meetings or telephone calls, we consider other means of communication, including emails and written summaries. We also give you extra time to process information and ask questions for clarification.

Creating a comfortable and supportive environment

We are mindful of every individual’s needs and sensory sensitivities. Therefore, we offer remote consultations and other solutions if you find face-to-face meetings too overwhelming.

Providing emotional and practical support

We prepare you for what you can expect in court, helping you to manage your expectations and emotions during and after proceedings. We also consult with you on whether you would benefit from a support worker or intermediary to help you communicate effectively during proceedings, ensuring that you understand what is said and that you accurately express yourself.

Recognising and safeguarding vulnerable clients

Our family lawyers remain mindful of the potential for coercion or undue influence, particularly in cases involving domestic abuse. We ensure you understand your rights and options before making any decisions, so no other party puts undue pressure upon you.

Helping you stay organised and informed

We can assist you with the organisational side of your family law matter by sending reminders for deadlines, breaking down complex legal steps into manageable tasks, and providing structured guidance throughout the case.

Making family law more inclusive

The legal system can often be rigid and difficult to navigate. Small adjustments can make a huge difference in supporting neurodiverse people. Our family lawyers are continually educating themselves by learning more about neurodiversity and how it affects people.

At RIAA Barker Gillette (UK), we are committed to providing inclusive and empathetic legal representation. We understand that every client is unique, and we tailor our approach to ensure people with neurodiversity receive the support they need to navigate family law matters with confidence and clarity.

If you’re neurodivergent and are facing a family law matter, speak to Pippa Marshall today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Business First Magazine

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RIAA Barker Gillette (UK) features in the Spring/Summer 2025 edition of Business First Magazine.

  • Patrick Simpson highlights the legal role in fostering workplace wellbeing, emphasising how compliance can help employers create a more supportive and mentally healthy environment.
  • Karen Cole sheds light on menopause in the workplace, encouraging businesses to become more inclusive by recognising and supporting employees through all life stages.
  • Evangelos Kyveris outlines the legal duties of UK company directors, reminding business leaders of their responsibilities and the potential risks involved.
Read online
Business First Magazine – Spring-Summer 2025Download

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Why is clear contract drafting important?

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In today’s fast-paced business world, contracts are the backbone of almost every commercial relationship. Whether you contract with suppliers, customers, or partners, a well-drafted contract can help avoid misunderstandings and protect your business from potential legal issues.

Parties often fail to have appropriate contracts in place – or, indeed, any contract at all. The familiarity between parties with well-established relationships can cause them to overlook the importance of clear and concise contract language, leading to costly disputes over misunderstandings, claims for contractual breach and a breakdown of party relationships.

Contract clarity matters

A contract is a legally binding agreement between parties that sets out the terms and conditions of a business arrangement. When drafted poorly, contracts can lead to confusion about each party’s obligations, misunderstandings, delayed payments, a breakdown of party relationships, and lengthy and costly litigation.

Focusing on clear and precise language ensures that everyone involved in the contract understands their rights and responsibilities.

Why is clear contract drafting essential

Preventing disputes: Clear terms help avoid confusion about what each party expects. Suppose the contract is vague or even poorly worded. In that case, it becomes easier for one party to argue that the terms are open to interpretation, which can result in costly disputes or legal action.

Defining expectations: Contracts provide an opportunity to set clear expectations, whether determining the scope of work, outlining payment schedules, or setting performance standards. Clear clauses ensure that all parties understand their roles in performing the contract and whether failure would constitute a breach of contract or termination of the agreement. This transparency creates a more efficient working relationship and minimises the chances of one party failing to meet their obligations.

Protecting your interests: Solicitors will design bespoke contract clauses to protect your business from potential risks. For instance, confidentiality clauses ensure that a party does not share sensitive information with third parties. Indemnity clauses can protect you from any losses or damages caused by the other party’s actions.

Standard clauses your business should consider

Payment terms: One of the most important aspects of any contract is how and when a party will pay. Being specific about payment schedules, invoicing procedures, and late fees can prevent payment-related issues.

Delivery and deadlines: When products or services are involved, the contract should clearly outline delivery timelines and deadlines. This clarity helps both parties stay on track and understand the consequences of not meeting deadlines.

Confidentiality clauses: Confidentiality is important in many business relationships. These clauses ensure that sensitive information shared during the agreement remains protected.

Dispute resolution: Clearly outlining how the parties will handle any disputes, whether through mediation, arbitration, or litigation, can save time and money in the event of disagreement.

Termination clause: This clause specifies the conditions under which either party can end the contract, including a plan of action for winding up or terminating a joint venture, partnership, company, or other entity.

How we can help

Partnering with us protects your business from potential risks with well-drafted, legally robust contracts. While clear contract drafting may seem simple, it requires precision and legal expertise to avoid ambiguities and enforceability issues. Our team ensures your agreements are comprehensive, legally binding, and tailored to align with your unique business needs, giving you confidence and legal security in every transaction.

Get in touch today with paralegal and author Anam Mohammed or Victoria Holland, who heads up our Corporate and Commercial team at West End law firm RIAA Barker Gillette (UK).

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Ensuring equality: A legal guide to responsibilities and compliance

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The Equality Act 2010 (the Act) consolidated multiple equal opportunities laws, including the Sex Discrimination Act 1975, Race Relations Act 1976, and Disability Discrimination Act 1995. It serves as a cornerstone of workplace equality, protecting individuals from discrimination, harassment, and victimisation. The Act was introduced following the formation of the Equality and Human Rights Commission (EHRC) in 2007, which promotes equality, diversity, and human rights in the UK.

While government guidance exists, what does “equal opportunity” truly mean in an employment context?

What do equal opportunities mean?

Equal opportunities in employment ensure that all workers are entitled to and can access all organisational facilities at every stage of employment. This principle applies irrespective of protected characteristics, including:

  • Age
  • Disability
  • Gender reassignment
  • Marital or civil partnership status
  • Pregnancy or maternity
  • Race (including colour, nationality, ethnic, or national origin)
  • Religion or belief
  • Sex
  • Sexual orientation

To uphold equal opportunities, every individual should have an equal chance to:

  • Apply and be considered for jobs during recruitment.
  • Receive training and promotions based on merit.
  • Experience fair and equal treatment throughout their employment, including termination.

Employers must make hiring, training, and promotion decisions based on merit rather than bias or prejudice. The push for workplace diversity, equity, and inclusion is not just a social expectation but a legal necessity.

Key equal opportunities responsibilities

The Act mandates employers to:

  • Prevent discrimination, harassment, and victimisation: Employers must actively safeguard employees against unfair treatment.
  • Make reasonable adjustments for employees with disabilities: Workplaces must be accessible and inclusive, ensuring fair participation.
  • Ensure equal pay: Employers must pay men and women the same for the same or equivalent work. Recent legal cases, such as the retailer Next’s six-year equal pay dispute, demonstrate the risks of non-compliance.
  • Protect employee health, safety, and welfare: Employers have a duty of care to ensure a safe and supportive work environment.

Who Is responsible for ensuring compliance?

Employers bear the primary responsibility for compliance. Simply having an equal opportunities policy is not enough. To avoid legal risks, businesses should implement effective training and monitoring programmes. These proactive measures can serve as a safeguard against discrimination claims.

Enforcing equal opportunities: how the law works

If an employee experiences discrimination, they may first raise a grievance with their employer. Many organisations have internal diversity and inclusion policies designed to address concerns before they escalate. If a resolution is not reached, the following legal avenues apply:

  • Employment Tribunal: Handles employment-related discrimination claims.
  • County Court or High Court: Deals with discrimination cases outside of employment.

Strict time limits apply for lodging claims, so prompt action is essential.

Final thoughts

Equal opportunities are not just about compliance—they help create fair, inclusive, and thriving workplaces. Employers must actively uphold these legal standards to ensure a discrimination-free environment. Staying informed and proactive can prevent costly legal disputes and foster a culture of equality and respect.

For expert legal advice on equal opportunities, contact Karen Cole, employment partner at RIAA Barker Gillette (UK).

Note: This article is not legal advice; it provides information of general interest about current legal issues.

Estate planning: How not to make mincemeat of it!

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In an unusual twist, Malcolm Chenery set out his wishes using a Young’s frozen fish box and a Mr Kipling mince pie box. He left his £180,000 estate—including a three-bedroom house, jewellery, and a pottery collection—to the charity Diabetes UK. Despite the unconventional medium and the two pieces of card not being physically connected, the court upheld the will. The case highlights how effective estate planning can reduce delays and costs for your beneficiaries.

The words "estate planning" written in blocks

Under English law, a will is valid if it complies with the Wills Act 1837, which requires it to be in writing, signed by the person making it, and witnessed by two independent individuals present at the same time.

James McMullan, partner and Head of Private Client Services at RIAA Barker Gillette (UK) said:

“While this case highlights that a will doesn’t have to follow a traditional format to stand in court, unconventional approaches often lead to unnecessary stress and costs for executors and beneficiaries. Even with the family supporting the charitable donation, this case caused additional complications.”

Simple preparation can avoid such confusion. One important step is to organise financial documents and create a clear list of assets, which is kept up to date and in a place known to the executors.

“Executors must obtain valuations for all your assets — whether property, crypto currency, premium bonds, or pottery collections like Mr Chenery’s. Providing account details in advance can save time and stress.”

A delay in sending information about assets to HM Revenue and Customs following a death can have serious financial consequences. Executors are personally accountable for handling estates correctly, including paying inheritance tax (IHT) on time. IHT is due within six months of the month of death, with HMRC currently charging 7.5% interest after that time. Delays can result in penalties and mounting costs, which beneficiaries might expect executors to cover from their own funds.

Executors must also act within two years to claim some of the tax-free allowances for married couples or civil partners, who can combine allowances to pass up to £1 million tax-free. Missing this deadline can reduce the inheritance beneficiaries receive.

While a spouse does not have to claim the exemption for gifts between spouses as it is ‘absolute’, they must claim the transferred nil rate band, where the two-year time limit applies.

James added:

“Think of estate planning as a gift to your loved ones. Discussing your plans with family, whether they’re included or excluded, can help avoid disputes and ensure your legacy is handled smoothly. Attention to detail now can make a world of difference later.”

Ensure your estate is handled exactly as you intend without unnecessary complications. Proper estate planning can save your loved ones stress, time, and unexpected costs.

Speak to James McMullan today to secure your legacy.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

If you found this article interesting, why not read…

Six tips to make things simple for your executors

Six tips to make things simple for your executors

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Executors may be family, friends or professionals, but they must make sure everything is done correctly at every stage, from collecting details of all the assets, reporting to HMRC, obtaining probate, to distributing money and other assets to beneficiaries. Agreeing to the role and having the opportunity to discuss your wishes will help them prepare. Partner and Head of Private Client Services at RIAA Barker Gillette (UK), James McMullan, suggests some other simple steps.

Draft a clear, valid will

Ensure your will complies with all legal requirements and reflects your wishes clearly. You should check and discuss anything that could lead to a dispute with those involved. Consider consulting a solicitor to ensure all bases are covered, including provisions for guardianship, specific bequests, and how you want to share your estate. Whatever the cost of having a will drawn up by a professional, it is a small price compared to the costs involved if the validity of a homemade will is questionable.

Store your will securely

Keep your will in a safe but accessible place and inform your executors where it is stored. Options include a solicitor’s office, a bank’s safe deposit box, or a registered will storage service. You can also log its existence with the National Wills Register. You should avoid storing your will in a place that could be overlooked or difficult to access, such as a personal safe with an unknown combination.  

Review and update regularly

Life events such as marriage, divorce, the birth of children, or a significant change in assets can affect the validity or relevance of your will. Regularly reviewing your will ensures it remains aligned with your current wishes. 

Consider your digital assets

In today’s digital age, estate planning must include online accounts, digital assets, and even social media profiles. Leave instructions for accessing important accounts and consider appointing a digital executor if necessary.

Plan for taxes

While the tax-free threshold for inheritance tax (IHT) is £325,000 in the UK, estates exceeding this may be liable for significant tax payments. Proper estate planning can help mitigate IHT liabilities, for instance, by effectively using exemptions, gifts, or trusts.

Communicate with executors and beneficiaries

Discussing your plans with all involved reduces misunderstandings and surprises later. Executors should understand their responsibilities, and beneficiaries should know your intentions to help manage expectations.

Make life easier for your executors and ensure your estate is handled smoothly. With the right planning, you can prevent unnecessary stress, disputes, and tax burdens.

Start your estate planning today with expert guidance from James McMullan.

Staying ahead in a changing legal landscape

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The importance of regular reviews of employment contracts and policies

In today’s business environment, employment law is constantly evolving. From updates to statutory rights and obligations to shifts in case law and regulatory guidance, businesses must navigate a complex and ever-changing landscape. One critical step for employers to remain compliant and protect their interests is regularly reviewing employment contracts, workplace policies, and procedures—something that is easy to overlook.

Why regular reviews of employment contracts and policies are crucial

Legislative and regulatory changes

Employment law frequently changes because of new legislation, government initiatives, or societal shifts. In recent years, we have seen updates to laws regarding worker status, parental leave, minimum wage increases, and flexible working arrangements. Failing to update contracts and policies to reflect these changes can lead to non-compliance, employee disputes, or even costly tribunal claims.

Case law developments

Employment law is shaped not only by legislation but also by decisions made in Employment Tribunals and courts. High-profile cases concerning gig economy workers have significantly impacted how businesses classify employees and independent contractors. Regular reviews ensure contracts and policies align with the latest judicial interpretations.

Changing workplace norms

The workplace is evolving, influenced by remote work, diversity and inclusion initiatives, and mental health awareness. Businesses must adapt their policies to reflect these shifts, supporting employee wellbeing and fostering a positive workplace culture.

Mitigating risk

Outdated contracts and policies expose businesses to unnecessary risks, including litigation, reputational harm, and financial penalties. Failure to provide a written statement of terms and conditions containing certain key information might result in a claim against the business. Such risks can easily be avoided by regularly reviewing and updating documentation.

employment contract terms and conditions

Key areas for review

Employment contracts

The employment contract is crucial as it essentially governs the relationship between employer and employee. It incorporates the statutory particulars given to an employee (a written statement of key terms and conditions) as well as clauses that provide additional protection for the employer. Such clauses are likely to include a probationary period, permitted deductions, and, where relevant, post-termination restrictions. Regarding the latter, it is sensible to ensure such clauses are kept under review and confidentiality clauses are updated to reflect current business needs and legal standards.

Workplace policies and procedures

If not in the employment contract, there are policies and procedures that an employer is legally required to have elsewhere, such as disciplinary and grievance, sickness and holiday procedures. There is a compelling reason to house some policies outside of the employment contract, which gives the business flexibility in updating them. Some policies, whilst not mandatory, have strong legal reasons for being included, such as bribery and data protection policies. 

Training and implementation

  • Employee Awareness: Bring any changes to employees’ attention and ensure they understand updated policies and procedures.
  • Manager Training: Equip managers with the knowledge to apply changes consistently and fairly.

Best practices for conducting reviews

  • Set a Regular Schedule: Conduct reviews annually or more frequently if significant legal changes occur.
  • Engage Experts: Work with employment law specialists to ensure accuracy and compliance and have such documents tailored to the business’ needs.
  • Consult Employees: Involve employees in the review process to identify gaps or practical issues.
  • Document Changes: Record all updates and communicate changes effectively to staff.

Conclusion

Mutual rights and obligations form the foundation of the employment relationship, and employers must maintain up-to-date contracts and policies to preserve this balance. Regular reviews ensure legal compliance and demonstrate a commitment to fairness, adaptability, and best practices. In an era of rapid legal and societal change, proactive employers can safeguard operations, foster employee trust, and position themselves for long-term success.

By taking a strategic approach to reviewing employment contracts and policies, businesses can stay ahead of the curve and create a robust foundation for growth and resilience.

Contact Karen Cole to update or review your employment contracts and policies today.

Note: This article is not legal advice; it provides information of general interest about current legal issues.

New sexual harassment rules may signal changes to office parties or a decline altogether

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The festive season is upon us, but businesses may need to rethink their approach to office Christmas parties following the introduction of stricter sexual harassment laws. The updated legislation, which came into effect in October, places a greater duty on employers to take reasonable steps to prevent sexual harassment in the workplace, including at social events.  Failing to do so means employers could face claims for unlimited compensation at the Employment Tribunal.

As a result, the new rules may spell the end of traditional alcohol-fuelled office celebrations, especially in any regulated sector such as financial services.

Head of Employment at RIAA Barker Gillette (UK), Karen Cole, highlights the impact on businesses.

“With increasing legal responsibilities for staff welfare and safety, some companies may feel such events are becoming too risky, too difficult to manage and too costly.”

The new legal duty represents a significant shift in how employers must act to prevent sexual harassment. Previously, employers could defend themselves by demonstrating they had policies and procedures in place and had taken reasonable steps after an incident occurred. Now, businesses must take action to anticipate and prevent sexual harassment, regardless of whether a complaint has been made.

Sexual harassment involves any unwanted sexual behaviour that causes someone to feel intimidated, degraded, humiliated, or offended, regardless of intent. This includes actions like inappropriate remarks about someone’s appearance, offensive jokes, unwelcome questions about personal matters, or non-consensual touching. It also extends to digital communication, such as unwanted messages, emails, or phone calls.

And the stakes are high for employers who fail to meet this new duty. If the Equality and Human Rights Commission (EHRC) receives a report that a business is not taking reasonable preventative steps, it can take enforcement action, even if no specific harassment claim has been made. Where a case proceeds to an employment tribunal, non-compliance could result in an increased compensation award of up to 25%.

In addition, businesses in high-risk industries may need to consider extra safeguards, such as in hospitality, where research has found more than half of women reporting workplace sexual harassment.  Measures could include ensuring employees never work alone, providing additional reporting channels beyond direct supervisors, and treating social events as extensions of the workplace. 

Karen warns:

“Waiting for something to happen is not an option: every employer needs to be able to show they have taken reasonable steps to prevent a situation arising.”

For employers, the message is clear: ignoring these risks could result in significant legal and reputational damage and simply scrapping social events like the Christmas party isn’t a solve-all action.  Instead, businesses need to mitigate risk by implementing clear policies, providing staff training, and promoting a culture of respect and inclusion.

Karen further explains:

“This legislative shift will be a wake-up call for many industries. Yes, festive gatherings can boost morale and foster team cohesion, but they must be carefully planned with an emphasis on safeguarding employee wellbeing.  

This is about looking at the bigger picture and taking action to foster a safe and respectful environment that protects both employees and the business.”

While the current legislation does not specifically allow for claims due to third-party sexual harassment, legal liability may arise if employers fail to act on inappropriate behaviour by clients or suppliers. Looking to the future, the Employment Rights Bill progressing through Parliament will increase employer responsibilities in this area.  

Are you concerned about how the new sexual harassment rules impact your business? Contact Karen Cole, Partner and Head of Employment Law at RIAA Barker Gillette (UK), for expert advice on ensuring compliance and protecting your organisation

Note: This article is not legal advice; it provides information of general interest about current legal issues.

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