A recent Employment Appeal Tribunal decision in the case of AB v Grafters Group Ltd has fundamentally changed how employers must think about sexual harassment liability, extending responsibility far beyond traditional workplace boundaries. For businesses, this ruling as well as the legislation change in respect of sexual harassment in October 2024 demands immediate attention and comprehensive policy review.
The Legal Landscape Shift
The Employment Appeal Tribunal’s decision in this hospitality case represents more than a single judgment – it signals that tribunals will give a broad interpretation to the legislation. Consequently, this impacts on employer liability for harassment occurring in work-connected contexts, even when those contexts are informal, unplanned, and physically removed from the workplace.
This development coincides with the 2024 legislative changes that imposed a positive duty on employers to take reasonable steps to prevent sexual harassment of employees (The Employment Rights Bill proposes to go further and require employers to take “ALL reasonable steps”). Together, these changes create a significantly more demanding legal environment where employers must proactively manage harassment risks across a much broader range of circumstances.
Case Background and Legal Journey
A hospitality recruitment agency worker (AB) missed her arranged transport to Hereford Racecourse where she believed she was scheduled to work. Accepting a lift from colleague CD, she was sexually harassed during the journey. AB reported the incident to police and brought an Employment Tribunal claim against their shared employer.
The central legal question – whether CD was acting “in the course of his employment” during the harassment – initially seemed straightforward but proved legally complex.
Initial Tribunal Decision – A Narrow Interpretation
The original Tribunal found that harassment had clearly occurred but ruled the employer wasn’t liable. Their reasoning focused on several factors that seemed to disconnect the harassment from employment:
CD wasn’t scheduled to work that day, the company had arranged alternative transport that AB had missed, the lift was an informal arrangement not organised by the employer, and CD’s actions appeared personal rather than work-related.
This decision reflected a traditional, restrictive approach to employer liability that focused heavily on formal work arrangements and direct employer authorisation of activities.
The Appeal – Judicial Course Correction
AB’s successful appeal in the Employment Appeal Tribunal (EAT) fundamentally challenged this narrow interpretation. She argued the Tribunal had failed to consider whether the situation constituted an “extension of employment” – similar to established principles around work social events, conferences, or other work-connected activities.
The EAT agreed and emphasised that Tribunals must consider:
- Whether harassment was closely connected to work, regardless of timing or location. The work connection doesn’t disappear simply because activities occur outside normal hours or away from company premises.
- The relevance of pre-existing workplace dynamics. CD’s history of sending sexually suggestive messages during work shifts and previously driving AB to work established a pattern of workplace-connected behaviour that couldn’t be ignored.
- Employee perception and context. AB’s genuine belief that she was travelling to work that day created a work-related context that influenced the entire situation’s character.
The Broader Legal Implications
This decision expands the “course of employment” test beyond traditional boundaries, creating potential liability for employers in numerous scenarios previously considered safe:
- Work-related travel arrangements – Even informal carpooling or shared transport to work events now carries harassment liability risks.
- Social interactions between colleagues – The line between personal relationships and work-connected behaviour becomes increasingly blurred when colleagues interact outside formal work settings.
- Extended work contexts – Business trips, conferences, client entertainment, and similar activities now require more careful management and clearer behavioural expectations.
In light of this decision and the new Sexual Harassment legislation employers should ensure they take the necessary action to reduce the risk of tribunal claims. This includes:
- Comprehensive policy development must address off-site scenarios explicitly. Your harassment policies can no longer focus solely on workplace behaviour – they must cover work-related travel, social events, and informal colleague interactions.
- Manager training requires significant expansion to help supervisors understand when employer liability might arise in seemingly non-work situations. Managers need practical guidance on identifying and managing risks in extended work contexts.
- Incident documentation systems must capture seemingly minor workplace behaviours that could later become significant evidence in harassment claims. Inappropriate messages, comments, or behaviour patterns need proper recording and management.
- Proactive intervention protocols should address concerning behaviour early, before it escalates into more serious harassment. The case shows how workplace behaviour can spill over into other contexts with serious legal consequences.
- Clear behavioural expectations must be communicated to all employees about professional conduct in work-connected situations, including travel, social events, and informal colleague interactions.
- Compliance and risk assessments for all potential scenarios affecting different employees (i.e. lone workers, night workers, junior employees and contractors etc)
The 2024 Prevention Duty
The Worker Protection (Amendment of Equality Act 2010) Act 2024 requires employers to take reasonable steps to prevent sexual harassment. This EAT ruling demonstrates how broadly this responsibility extends – prevention efforts must now consider work-connected activities far beyond traditional workplace boundaries.
Employers must now consider: What reasonable steps should we take to prevent harassment during work-related travel? How do we manage risks at work social events? What training do employees need about professional conduct in extended work contexts?
Commercial Reality Check
Sexual harassment claims are expensive, time-consuming, and potentially devastating for business reputation. Tribunal awards, legal costs, management time, and reputational damage can quickly reach six-figure sums. The expanded liability created by this ruling multiplies these risks significantly.
Proactive policy development and regular risk assessments, comprehensive training, and early professional advice represent essential business investments, not optional extras.
Expert Employment Law Advice
Sexual harassment law is evolving rapidly, and the consequences of falling behind current legal developments can be severe. Our employment law specialists help businesses understand their expanding obligations and implement effective, practical protection strategies.
Whether you need policy updates, manager training, or guidance on specific situations, early specialist intervention prevents costly mistakes and reduces legal exposure
Get In Touch
Debbie Coyne is a Partner and head of our employment law team. Debbie has extensive experience advising employers on all aspects of employment law, including both contentious and non-contentious matters.
At Slater Heelis, we advise employers and employees on all aspects of workplace harassment, including the implications of recent legal developments such as the AB v Grafters Group Ltd decision and the 2024 changes to sexual harassment legislation. Whether you’re an employer reviewing your policies or an employee concerned about inappropriate conduct, we can provide clear, practical guidance tailored to your situation.
If you’re concerned about your organisation’s responsibilities under the new prevention duty or need advice on managing risk in extended work settings, contact our employment law specialists today on 0330 111 3131 or via our online enquiry form.
