What starts as workplace ‘banter’ could soon land employers in serious legal hot water, a North East firm has said.
Richard Reed Solicitors, based in the North East, have warned that casual humour and off-hand comments in the workplace could expose organisations to claims of harassment or discrimination under new employment laws.
The upcoming Employment Rights Act 2025 will introduce tougher protections for employees and place greater responsibility on employers to prevent harassment and unwanted behaviour in the workplace.
Kat Moody, an associate solicitor at Richard Reed Solicitors, said: "Employers are increasingly judged not only on written policies, but on workplace culture.
"Workplace culture is defined by what managers tolerate, encourage or fail to challenge.
"Leadership defines workplace culture by what it laughs at, and what it ignores."
Ms Moody emphasised that without clear action, casual workplace chatter has the potential to cross the line into legally actionable behaviour.
She said: "What begins as ‘just banter’ can ultimately expose a business to significant financial liability."
The proposed legislation reinforces that any unwanted behaviour related to a protected characteristic, or conduct of a sexual nature, which has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating, or offensive environment, may constitute unlawful harassment.
Employers will be required to take reasonable steps to prevent sexual harassment and may face increased compensation awards of up to 25 per cent if they fail to do so.
Since October 2024, organisations have been expected to actively comply with preventive duties, including implementing policies, training and reporting mechanisms.
Richard Reed Solicitors highlighted a recent case in which a woman successfully claimed harassment after colleagues watched pornography at work.
The Employment Appeal Tribunal ruled that her delay in reporting the behaviour did not weaken her claim, reinforcing that silence should not be seen as acceptance.
Ms Moody said: "A workplace culture of banter may explain behaviour, but it can become evidence of a toxic environment."
She also warned against jokes about protected characteristics.
Employers should be especially cautious about humour related to appearance, age, race, gender, disability, sexuality, religion or identity.
Digital communications pose additional risks.
Messages and content shared via WhatsApp, Teams, Slack, memes, gifs and emojis are now regularly disclosed in workplace investigations and tribunal proceedings.
Potential compensation could cover injury to feelings, psychiatric injury, aggravated damages, future financial loss and loss of earnings.
However, Ms Moody said the financial impact is only part of the risk.
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Employers could also face reputational damage, higher staff turnover, sickness absence, lower morale and difficulties with recruitment.
Ms Moody said: "Employers need to look beyond policies and focus on culture.
"A joke, nickname or meme shared in seconds can lead to significant legal and reputational consequences."
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