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Third Party Harassment: Why It’s Often a Commercial Decision Disguised as an HR Issue

By June 24, 2026 No Comments

The new duty on employers to take reasonable steps to prevent sexual harassment by third parties has prompted a lot of discussion amongst HR professionals.

Much of that discussion has focused on policies, training, reporting routes and investigations. All of these things matter. Organisations should absolutely be reviewing their approach and considering whether their existing arrangements are fit for purpose.

But there is a risk that we frame third party harassment as purely an HR issue.

In our experience, that is often not where organisations get stuck.

Most HR teams understand the options available to them. They know how to investigate concerns, assess risk and recommend action. The real challenge often arises when the person creating the risk is commercially important to the organisation.

A major client.

A donor.

A VIP guest.

A contributor.

A customer generating significant revenue.

At that point, the discussion can quickly move beyond HR and become a leadership and commercial decision.

The Harasser Isn’t Your Employee

One of the reasons third party harassment creates such complexity is that the organisation does not have the same level of control over third parties as it does over employees.

When an employee behaves inappropriately, there is usually a clear framework available. Employers can investigate, take disciplinary action, issue warnings and, where appropriate, terminate employment.

Third parties are different.

They may be customers, clients, service users, suppliers, contractors, audience members or contributors. They sit outside the organisation’s direct control, yet their behaviour can still create significant risks for employees.

This creates an uncomfortable reality.

Organisations may have a responsibility to protect employees from harassment, but they cannot simply rely on their normal employee relations processes to do so.

Instead, they need to consider what influence they have and how willing they are to use it.

HR Usually Knows the Options

When we discuss third party harassment with clients, the issue is rarely a lack of ideas.

Most HR professionals can quickly identify a range of possible interventions.

Depending on the circumstances, organisations may choose to:

  • Challenge the behaviour directly.
  • Set clear expectations regarding future conduct.
  • Issue warnings.
  • Escalate concerns to the third party’s employer.
  • Change points of contact.
  • Restrict access to certain employees or locations.
  • Remove individuals from events or activities.
  • Refuse service.
  • Terminate a commercial relationship.

These options are not new.

The difficulty is determining which response is proportionate and whether the organisation is prepared to follow through.

That is where many conversations become significantly more complicated.

Where Organisations Really Get Stuck

Imagine an employee reports that a client has made repeated inappropriate comments.

The organisation investigates and concludes that the concerns are credible.

What happens next?

From an HR perspective, the options may be relatively straightforward. The behaviour can be challenged. Boundaries can be set. Future interactions can be managed differently.

But what if that client represents a significant proportion of the organisation’s revenue?

What if they are a long-standing supporter?

What if the relationship is strategically important?

What if senior leaders are concerned about the commercial consequences of taking action?

This is often the point where employee welfare and commercial interests collide.

The conversation shifts away from what should happen and towards what the organisation is prepared to do.

That is why third party harassment is often a commercial decision disguised as an HR issue.

The legal duty may sit within an employment law framework, but the practical decisions frequently sit with leaders responsible for revenue, reputation, operations and strategy.

The question is no longer whether action is possible.

The question becomes whether the organisation is willing to accept the consequences of taking it.

Visit Tell Jane to learn how we help organisations navigate third party harassment, workplace investigations and harassment prevention with confidence.

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