Property companies are facing stricter rules around workplace harassment, and the changes taking effect in October could reshape how the industry handles employee protection. The Employment Rights Act 2025 will require employers to take “all reasonable steps” to prevent sexual harassment—a stronger standard than the current duty, which focuses mainly on reasonable responses after problems arise. For a sector where women hold just 18% of qualified positions according to RICS data, the shift carries particular weight.
What the new standard means
Under the updated law, employment tribunals will examine not only how companies responded to complaints but what they did beforehand to stop harassment from occurring. Emily Bradshaw, a partner at Bloomsbury Square Employment Law, said the change moves the focus toward prevention rather than reaction. The definition of sexual harassment covers unwanted conduct of a sexual nature that violates dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment. This includes inappropriate comments, unwanted advances and suggestive messages at work-related social events.
The duty extends beyond internal staff. Employers must also consider the potential for harassment by third parties such as clients, contractors and consultants working alongside their people. In property, where collaboration with external contacts is routine, this creates a broader set of responsibilities than many firms may have previously recognized.
The changes arrive amid ongoing scrutiny of workplace culture across male-dominated industries. While estate agency has a more balanced gender split, leadership positions continue to be dominated by men, and the property sector should not assume it is immune from the cultural issues that can give rise to harassment claims.
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Where problems actually occur
Many harassment cases emerge outside traditional office settings. Bradshaw’s firm recently handled a matter involving an employee at an annual company ski trip where excessive drinking formed part of the culture. After rejecting unwanted advances from a colleague, the individual faced detrimental treatment including increasingly inappropriate comments throughout the trip. The case settled for a substantial amount, but it illustrates how quickly work-related social events can create legal and reputational risks for employers.
Property deals regularly happen at networking events, client dinners, site visits and industry conferences. These settings are important for business but can blur professional boundaries. The new standard means firms need to think about risks across all these environments, not just within office walls.
Whether the stricter requirements will meaningfully change behavior in practice remains uncertain. The legal framework sets a higher bar, but enforcement depends on how tribunals assess what counts as sufficient prevention efforts. Companies that treat the changes as a compliance checklist may find themselves exposed if their measures exist only on paper.
Questions firms should answer
Bradshaw outlined several areas where property companies should focus attention. Have they carried out risk assessments that reflect how their people actually work? Are policies current? Have managers received appropriate training? Do employees understand how to report concerns? Equally important, have they built a culture where staff feel safe raising issues and confident their complaints will be handled properly and confidentially?
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Documentation will become increasingly important. If challenged, employers will need to show evidence of steps taken to identify risks, train staff and review procedures. A generic equality policy drafted years ago is unlikely to satisfy the new standard. Firms must demonstrate that measures are embedded in day-to-day practice rather than sitting as documents on a shared drive.
The property industry has long prioritized managing health and safety risks. Bradshaw suggested sexual harassment should be viewed through a similar preventative lens. Businesses that invest time in reviewing culture, training, policies and reporting mechanisms will be better positioned to demonstrate they have taken all reasonable steps if a complaint arises.
For employees, the changes should provide greater reassurance that employers are expected to act before problems develop. For employers, the message is clear: reactive responses alone are no longer sufficient. Creating workplaces where everyone feels safe and respected is likely to improve recruitment, retention and reputation—outcomes that carry real business value beyond successfully defending a tribunal claim.
