Understanding the difference between bullying and harassment
Bullying and harassment are often mentioned together, but they are legally distinct concepts. Understanding the difference matters because it affects your obligations as an employer and the remedies available to your employees.
Bullying is repeated, unreasonable behaviour directed at an employee that creates a risk to their health and safety. There is no specific UK law that defines workplace bullying, but it is covered by general employment protections. Employees who are bullied may bring claims for constructive unfair dismissal, personal injury, or breach of the implied term of mutual trust and confidence.
Harassment has a precise legal definition under Section 26 of the Equality Act 2010. It is unwanted conduct related to a protected characteristic that has the purpose or effect of violating a person's dignity, or creating an intimidating, hostile, degrading, humiliating, or offensive environment for them.
The protected characteristics under the Equality Act are: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.
The critical distinction is this: harassment is linked to a protected characteristic, and bullying is not. An employee who is persistently undermined by their manager because of a personality clash may be bullied, but unless the behaviour relates to a protected characteristic, it is not harassment under the Equality Act. Both are unacceptable, but the legal frameworks and potential consequences differ.
What bullying looks like in practice
Bullying behaviour is often subtle and can be difficult to identify, particularly when the person responsible is in a position of authority. Common examples include:
- Spreading malicious rumours or gossip about a colleague
- Deliberately excluding someone from meetings, emails, or social activities
- Setting unreasonable targets or deadlines that are designed to make someone fail
- Persistent, unjustified criticism of a person's work
- Blocking someone's access to promotion, training, or development opportunities
- Micromanagement taken to an oppressive degree, where every minor task is scrutinised and controlled
- Taking credit for someone else's work
- Publicly humiliating or belittling a colleague
It is worth noting that reasonable management actions, such as setting performance targets, addressing conduct issues, or restructuring teams, are not bullying. The line is crossed when the behaviour is unreasonable, targeted, and repeated.
What harassment looks like in practice
Harassment can take many forms, and it does not have to be deliberate. The test under the Equality Act considers whether the conduct had the effect of violating dignity or creating a hostile environment, regardless of the perpetrator's intention.
Examples include:
- Offensive jokes, banter, or comments related to a protected characteristic
- Displaying offensive or inappropriate material in the workplace
- Unwanted physical contact, from inappropriate touching to invasion of personal space
- Derogatory comments about someone's appearance, background, or lifestyle
- Sexual comments, advances, or innuendo
- Mocking someone's accent, religious practices, or disability
- Using slurs or stereotypes, even when framed as "just a joke"
A single serious incident can constitute harassment. It does not need to be repeated. And the perception of the person on the receiving end is central to the assessment.
Your legal duties as an employer
The legal landscape around workplace harassment has shifted significantly in recent years, and the direction of travel is clear: employers are expected to do more.
The Worker Protection (Amendment of Equality Act 2010) Act 2023 introduced a new preventative duty on employers from October 2024. You are now required to take reasonable steps to prevent sexual harassment of your employees. This is a proactive obligation. You cannot simply wait for a complaint and then react.
From October 2026, under the Employment Rights Act 2025, this duty strengthens further to require all reasonable steps to prevent harassment related to any protected characteristic, not just sexual harassment. The duty also extends to harassment by third parties, including customers, clients, suppliers, and members of the public.
This is a significant change. If a client makes racist comments to one of your employees and you do nothing about it, you could be liable. If your staff face regular harassment from customers and you have not taken steps to protect them, you are failing in your duty.
What "all reasonable steps" means in practice
Tribunals will assess whether you took all reasonable steps based on the specific circumstances of your business. There is no one-size-fits-all checklist, but the following measures are widely considered essential:
Clear policies. Have an anti-harassment and anti-bullying policy that defines unacceptable behaviour, sets out the reporting process, and explains the consequences. If you are unsure which HR policies every small business needs, start there. Make sure every employee has read and understood them. Review your policies and procedures regularly to keep them current.
Training. Provide regular training for managers and staff on what constitutes bullying and harassment, how to recognise it, and how to respond. Training should be refreshed periodically, not delivered once at induction and then forgotten.
Accessible reporting channels. Employees must know how to report concerns and feel confident they will be taken seriously. Consider multiple reporting routes, such as line manager, HR, a named contact, or an anonymous reporting option.
Prompt investigation. When a complaint is made, investigate it thoroughly and without delay. Follow your grievance procedure and the Acas Code of Practice.
Proportionate action. If the complaint is upheld, take appropriate action. This might range from a formal apology and training through to disciplinary action or dismissal depending on the severity.
Regular review. Monitor your workplace culture. Use staff surveys, exit interviews, and management conversations to identify concerns before they become formal complaints.
Handling complaints effectively
When an employee reports bullying or harassment, follow your formal grievance procedure. The Acas Code of Practice applies, and the principles are the same as for any grievance: acknowledge the complaint, investigate impartially, hold a meeting, make a decision, and offer an appeal.
There are some additional considerations specific to bullying and harassment cases:
Take every complaint seriously. Even if you think the employee is being oversensitive, their perception matters under the Equality Act. Dismissing a complaint without investigation is dangerous.
Consider interim measures. While the investigation is ongoing, consider whether the parties should be separated. This might mean temporary changes to reporting lines, shift patterns, or seating arrangements. Avoid moving the complainant unless they request it, as this can feel like punishment.
Maintain confidentiality. As far as possible, keep the details of the complaint confidential. Gossip and speculation can make the situation worse for everyone.
Support both parties. The person accused of bullying or harassment is also entitled to fair treatment. Make sure they are informed of the allegations, given a chance to respond, and supported through the process.
If formal resolution is not appropriate, or if both parties are willing, workplace mediation can be an effective way to rebuild working relationships after a complaint.
The cost of getting it wrong
The financial consequences of mishandling bullying and harassment can be severe. Harassment claims under the Equality Act are uncapped, meaning there is no limit on the compensation a tribunal can award.
Compensation typically includes:
- Injury to feelings (Vento bands, updated annually). For 2025: lower band from £1,200 to £12,100, middle band from £12,100 to £36,400, upper band from £36,400 to £60,700. The most serious cases can exceed the upper band.
- Financial losses, including lost earnings and future loss of earnings
- Aggravated damages, where the employer's conduct during the proceedings made the situation worse
- The 25% Acas Code uplift, if you failed to follow the grievance procedure properly
Beyond the financial cost, there is the damage to your reputation, your ability to recruit, and the morale of your remaining staff. Employees who see bullying tolerated or poorly handled lose trust in their employer.
Building a culture of respect
Prevention is always better than cure. The most effective way to tackle bullying and harassment is to build a workplace culture where it simply does not take root.
That starts with leadership. The tone is set from the top. If senior managers model respectful behaviour, challenge inappropriate conduct, and take complaints seriously, that message filters through the organisation. If they turn a blind eye to "banter" or dismiss concerns as oversensitivity, employees learn very quickly that complaints are not welcome.
How Rebox HR can help
We help businesses across the UK develop robust anti-harassment policies, deliver management training on preventing bullying and harassment, and support employers through complaint investigations and mediation.
If you are dealing with a bullying or harassment complaint, or you want to make sure your business is ready for the strengthened duties coming in October 2026, book a free consultation and we will help you get it right.
