PART 1 – Workplace Sexual Harassment: Unpacking the Recent Allegations Against Mohammed Al Fayed and the Broader Implications for Businesses

Here, we address the issues raised as a result of the recent allegations against the former owner of Harrods and Fulham Football Club, the late Mohammed Al Fayed, and the important new preventative steps duty for employers coming into force on 26 October 2024.

Keep an eye out for Part 2 and Part 3 where we will:

• Consider what defences are available to an employer, delving deeper into the new positive duty on employers to take reasonable steps to prevent sexual harassment; and
• Explore actions and steps to take to minimise the risks for employers and falling foul of the new requirements.

The late Mohammed Al Fayed has recently been at the centre of serious allegations including sexual harassment, assault, and misconduct during his time as owner of Harrods and Fulham FC. A number of women, former employees of the establishments, have come forward with claims that range from sexual harassment to the most serious criminal sexual offences.

Focusing on the offence of sexual harassment specifically: this is unwanted conduct of a sexual nature. The Equality Act 2010 protects employees, workers, contractors, self-employed people (hired to personally do the work), and job applicants against sexual harassment at work. The unwanted behaviour must have the purpose or effect of:

1. violating someone’s dignity, or
2. creating an intimidating, hostile, degrading, humiliating or offensive environment for someone.

Note that if a person is treated less favourably because they reject or submit to the unwanted conduct then this is also harassment.

In assessing whether the conduct has the effect referred to above, an Employment Tribunal must consider the perception of the person who has been harassed, the other circumstances of the case, and whether it is reasonable for the conduct to have that effect.

The allegations against Al Fayed have triggered extensive publicity and investigations, focusing not only on the alleged incidents themselves but also on the workplace environment at Harrods during his ownership. Reports suggest that employees often worked under a climate of fear, with limited avenues to report misconduct. This has raised legal questions regarding Harrods’ vicarious liability for the actions of its former owner, shedding light on potential failures in corporate responsibility. It has been alleged that internal policies and a culture of intimidation discouraged victims from approaching Human Resources (HR) for support.

The current management of Harrods has issued apologies and publicly condemned Al Fayed for presiding over the “toxic culture of secrecy, intimidation, fear of repercussion and sexual misconduct”. Whilst Fulham FC have been more reserved in their public statement, expressing that they are “deeply troubled” by the recent reports. There are calls for transparent and unbiased assessments of the companies’ roles during Al Fayed’s tenure. Under the Equality Act, an employer is liable for an act of harassment carried out by a worker during the course of their employment, whether or not the employer had knowledge of the incident and in the absence of a defence. This places a significant legal burden on businesses to ensure their work environments are safe and respectful.

These allegations come to the fore as the UK is set to see the new legislation under the Worker Protection (Amendment of Equality Act 2010), coming in on 26 October 2024. The law imposes a duty on employers to proactively prevent sexual harassment, emphasising that they must take “reasonable steps” to protect employees and more. This includes stricter preventative measures and more robust reporting channels. We will talk further about these measures in our upcoming articles in this three-part series.

The Al Fayed case highlights the urgent need for businesses to develop comprehensive policies and create safer workplaces. Employers have a duty of care to their employees. The case appears to be a shocking example of what can happen where there is a failure to foster an environment in which employees feel protected and supported in coming forward with complaints. It has sparked wider discussions on employer liability, workplace culture, and the systemic changes required to prevent harassment across industries.

It also serves as a reminder that businesses must not only react to allegations but also take proactive steps to protect their employees. As legal frameworks evolve, including the introduction of the new legal preventative duty at the end of October 2024, companies can no longer afford to overlook the significance of maintaining a safe and respectful work environment.

Please do get in touch with our Employment Team if you have any queries on 020 8290 0440 or employment@thackraywilliams.com.