Reinstating the Harasser: The £19,000 mistake every business should avoid

In the recent case of the Co-Operative Group Limited v Brooks, the Exeter Employment Tribunal (“ET”) has provided useful guidance that the duty to take reasonable steps to prevent sexual harassment of employees is becoming increasingly rigid in advance of the changes to the law coming into force in October 2026.

Background

In 2022, Charlotte Brooks (“the Claimant”) and Kelly Dawson joined the Co-Op as apprentice lorry drivers. In June 2022, the Claimant raised concerns with her line manager about Ms Dawson’s behaviour. Mediation was arranged for them, but it was unsuccessful.

The Claimant and Ms Dawson were then sent on a driver training course together. During driver training, Ms Dawson commented to the driving instructors that the Claimant would perform sexual acts to “get what she wanted”. The Claimant was “very upset” by the comments and reported them to her line manager, who suggested further mediation. The Claimant rejected the mediation as she considered that it would worsen her discomfort around Ms Dawson.

Their relationship continued to deteriorate and completely broke down when, in October 2024, the Claimant received a covert voice recording from Ms Dawson stating that the Claimant “thinks she can flash [her breasts] at anybody and anyone will do anything for her”. The Claimant submitted a formal grievance. It was found that Ms Dawson had engaged in inappropriate behaviour, and she was dismissed in December 2024 after a disciplinary hearing found that there had been a sustained period of bullying and harassment.

Ms Dawson appealed the decision, and her dismissal was overturned on 16 January 2025 as the appeal manager concluded that the decision to sack Ms Dawson was procedurally flawed. It was replaced by a final written warning.

The Claimant was informed of the appeal outcome on 22 January 2025, and when she queried what safeguarding measures were to be put in place, she was informed that nothing had been discussed. Concerned at the lack of consideration, she signed herself off as unfit for work with stress-related illness and only returned in February 2025.

Decision

The ET found that Ms Dawson’s conduct amounted to harassment related to sex, harassment of a sexual nature and direct sex discrimination. They considered that the appeal manager’s conduct was tainted by his subconscious view that the sexual harassment was less serious as it was between two women. The Co-Op’s failure to introduce any safeguarding measures was found to be particularly concerning and further strengthened the ET’s findings that the nature of the allegations was not treated with the appropriate seriousness.

The Co-Op was ordered to pay £19,042.39 in compensation for injury to feelings.

Lessons for Employers

This case is a firm reminder that employers must treat all allegations of sexual harassment seriously. They must not make pre-emptive judgments that the seriousness of sexual harassment is diminished when between employees of the same sex. It also reiterates the need to consider the impact the grievance process is having on the complainant throughout the entire process, including the appeal stage, as the Co-Op was criticised for their lack of concern for the Claimant’s request for safeguarding arrangements.

Employers should also be aware that on 30 October 2026, the duty to take reasonable steps to prevent sexual harassment is being amended by section 20 of the Employment Rights Act 2025 (“ERA”) to require employers to take “all reasonable steps” to prevent sexual harassment. This duty imposes a further burden on employers and will make it harder to defend sexual harassment claims.

Regulations to specify reasonable steps to prevent sexual harassment will also be introduced, but these steps are likely to include:

• Developing anti-harassment policies;
• Undertaking risk assessments;
• Engaging and training staff, particularly managers, on dealing with complaints of sexual harassment;
• Ensuring effective reporting and complaints systems are in place; and
• Evaluating steps taken on an ongoing basis.

Section 21 of the ERA 2025 will also reintroduce employer liability for third-party harassment. Employers will be required to take all reasonable steps to prevent third parties from harassing employees in the course of their employment. This is far more onerous than the previously repealed requirement for an employee to have been harassed by a third party on at least two occasions and for an employer to know about the harassment.

What Steps Should Employers Take?

• Review, update, and strengthen anti-harassment policies
• Train managers on how to prevent harassment and discrimination
• Train managers on how to approach allegations being made of sexual harassment
• Keep complainants updated throughout the grievance process
• Implement safeguarding measures and workplace risk assessments