When does sexual harassment by an employee take place in the course of employment?

The Employment Appeal Tribunal decision in AB v Grafters Group Ltd  EAT 126 is a reminder that employer liability for sexual harassment can extend beyond the physical workplace.

Employers can be vicariously liable for harassment during work-related activities, even without direct knowledge or involvement. This comes as the new statutory duty to prevent workplace sexual harassment, introduced in October 2024, has led to a 39% rise in harassment calls to ACAS.

AB v Grafters: The facts

For an employer to be held vicariously liable for wrongful acts of its employees, those acts must occur ‘in the course of employment’. The recent case of AB v Grafters Group Ltd (t/a CSI Catering Services International) [2025] EAT 126 considered when sexual harassment can be said to have taken place in the course of employment. The Claimant, AB, complained she was subjected to sexual harassment by a co-worker, CD, when CD had given her a lift to work. She mistakenly had thought she was due at work that day whilst CD knew he was not due at work. The employer had not arranged for AB to receive a lift from CD and had no knowledge that the same was taking place. The primary question was whether the employer could be held liable for CD’s actions. 

What did the EAT decide?

The Employment Appeal Tribunal explained in its judgment that for the sexual harassment to have occurred ‘in the course of employment’ consideration must be given to whether there was a sufficient nexus or connection between the activities and work so as to render it as occurring ‘in the course of employment’ or that where or when it took place constituted an extension of work and the workplace or working activities. Such a connection was found to be in place when CD gave AB the lift to work. 

Key takeaways for employers

The case acts as an important reminder to employers that the extent of their liability for the acts of their employees goes beyond merely those activities which take place at the workplace and will often include a much broader range of activities undertaken in relation to work or while attending work related events. 

Employers should take action to strengthen their sexual harassment prevention measures in compliance with the duty:

• Review existing policies and staff handbooks: Ensure anti-harassment policies explicitly cover work-related activities outside the workplace, including travel, social events, and off-site meetings. Clarify that behavioural expectations extend beyond work premises to any work-connected activities.
• Strengthen reporting mechanisms: Ensure employees know how to report incidents that occur outside traditional workplace settings.
• Deliver targeted training and communicate expectations: Educate managers and employees about the extended scope of workplace harassment liability. Send clear messages about acceptable behaviour at all work-related functions.
• Conduct risk assessments: Identify potential harassment scenarios in work-related activities outside the workplace.

Contact us

Our employment law team can support you in implementing these essential measures. We offer policy reviews and updates, bespoke training programmes, risk assessments and ongoing legal guidance to ensure full compliance with your statutory duties.

Browne Jacobson offer a Preventing Sexual Harassment at Work Toolkit which includes further guidance for employers on discharging their duty to prevent sexual harassment, a template policy, staff survey, and risk assessments.