Estate and letting agents across the UK will face expanded legal obligations regarding workplace harassment from October 2026, following the Employment Rights Act 2025 receiving Royal Assent in December 2025.
The legislation introduces three key changes affecting property professionals, with confirmed implementation dates now published by the government. The reforms mark the most significant shift in employer harassment liability since third-party provisions were removed in 2013.
Third-party harassment liability returns
From October 2026, the duty to prevent sexual harassment will rise from “reasonable steps” to “all reasonable steps”, whilst employer liability for harassment of staff by clients, contractors, or members of the public will be reintroduced.
Unlike the previous framework which required two prior incidents before liability attached, the new duty applies from the first incident with no threshold. Agencies will be liable for harassment of staff by landlords, tenants, buyers, or contractors unless they can demonstrate they took all reasonable steps to prevent it.
The government has indicated that expectations will be calibrated to what employers can realistically control, though unsupervised, public-facing contact including viewings, valuations, and key handovers has been identified as a specific risk factor in legal commentary on the reforms.
A recent tribunal case, Campbell v Sheffield Teaching Hospitals NHS Foundation Trust and Hammond [2025] EAT 42, provides insight into how tribunals assess the “reasonable steps” defence. The case, which predates the ERA 2025, saw a race harassment claim dismissed partly because the employer had implemented induction training, annual reviews, workplace posters, and equality and diversity training refreshed every three years, with the latest session weeks before the incident.
Whistleblowing protection expanded
Changes to whistleblowing protection took effect on 6 April 2026. Disclosures relating to sexual harassment now explicitly qualify as protected disclosures under whistleblowing law, provided the worker reasonably believes the disclosure is made in the public interest.
The change means anti-retaliation protection now attaches automatically to harassment reports. Policies describing harassment reporting purely as an HR matter are now considered out of date under the new framework.
NDA restrictions delayed
The ban on non-disclosure agreements that prevent workers from alleging or disclosing harassment or discrimination has been delayed. Originally expected in 2026, the provision is now anticipated to take effect in 2027 whilst the government continues consultation on details including a mandatory cooling-off period and conditions for limited “excepted agreements”.
Uncapped compensation and a 25% uplift for failing the “all reasonable steps” duty remain as previously reported. Fire-and-rehire restrictions, Fair Work Agency powers, and wider unfair dismissal reforms are progressing separately, with most provisions landing between October 2026 and January 2027.
Industry implications
The changes arrive as the property sector faces broader regulatory and market pressures. Landlord costs have risen 56% whilst rental income has grown 26%, creating financial pressures that may affect compliance budgets.
Legal advisers are recommending that agencies conduct risk assessments of client, landlord, and viewing interactions, refresh training regularly with documented records, and establish reporting channels independent of line management. Documentation of timing and repetition of training is considered as important as content, with tribunals expected to require evidence of recent and repeated action.
The sector’s reliance on lone working and client-facing interactions presents particular challenges under the new framework. Unlike office-based environments, property professionals frequently conduct unsupervised meetings in private residences and commercial properties, creating exposure to third-party conduct that employers must now demonstrate they have taken “all reasonable steps” to prevent.
The October 2026 implementation date provides agencies with approximately six months to review and update policies, training programmes, and reporting infrastructure to meet the higher evidential standard that tribunals are expected to apply.
