The recent changes in the UK’s Workers’ Rights Policy on harassment are set to bring about significant shifts in how businesses approach workplace safety and culture. While the primary focus is on creating a safer and more respectful environment, there are also financial considerations that employers need to keep in mind.

So, what’s changing, and what does it mean for your business and finances?

1. New Duty to Prevent Harassment: Planning for Compliance Costs

The introduction of a proactive duty for employers to take reasonable steps to prevent harassment means businesses may need to invest in new or expanded training programmes, clear policies, and ongoing assessments. From an accountant’s perspective, these changes are not just operational; they carry potential costs.

Investing in quality training and preventative measures early on can help businesses avoid more significant legal expenses down the line. We can help you budget for these proactive changes to ensure compliance without straining your finances.

2. Third-Party Harassment Protections: Managing External Risks

With the reintroduction of protections against third-party harassment, companies may face the need to revise their risk management and reporting procedures. This may include updating contracts, policies, and communication channels with external parties.

The key here is forward planning. You may need to allocate funds to address these updates, manage risk, and avoid unexpected costs. By assessing the financial implications of these changes, businesses can plan effectively and maintain control over their budgets.

3. Enhanced Reporting and Accountability: Financial Implications

Clearer reporting channels are essential for meeting the new expectations under this policy. However, implementing and maintaining these channels may require dedicated resources and infrastructure. While this is a vital part of building trust and safety, it’s also a financial investment.

We will work with businesses to forecast the costs of implementing these new processes and identify ways to optimise spending. Whether it’s through tech solutions, updated HR policies, or legal advice, our team and extended contacts are here to support you in making informed financial decisions.

Moving Forward with Clarity

The new Workers’ Rights Policy on harassment isn’t just a legal shift—it’s a chance to reinforce a positive workplace culture. It is well overdue. With this, it’s crucial to understand the potential cost implications and proactively plan for them. At Clarity Accounting, we work with our clients to find cost-effective ways to implement positive changes while protecting their bottom line.