Sexual harassment is a challenging and increasingly costly area for employers and the best way to prevent your company - and yourself - from allegations of sexual harassment is to actively take steps to prevent it from happening in your workplace in the first place.

One of the biggest problems is that most allegations of sexual harassment come down to a ‘he said, she said’ dispute in court. Juries seem to have more sympathy for the accuser in such cases and even if the employer isn’t personally guilty of harassment it’s possible that the business can become a defendant because the jury perceives it has some sort of responsibility for what’s taken place.

This doesn’t mean that an employer has to demand there be no physical contact between the company’s employees; it would be impossible to police such a demand and equally impossible to prevent it from happening. So, what are the limits for all parties?

The first and most important instance of sexual harassment to avoid is when an employee feels they must submit to an employer’s or supervisor’s sexual advances to retain their job or to gain a promotion. This carries with it a double edged penalty where the employer is guilty not only of sexual harassment but also of unlawful sexual discrimination against a person qualified for that position.

It’s not just demands for sexual favours

An important point to make is that sexual harassment regulations cover a lot more than the demands for sexual favours. For example, courts have held that photographs of naked women on a workshop wall can harass female employees, as can a female employee phoning a male employee several times a day. It’s neither the actions nor the mindset of the instigator that are in question - it’s the perception of the recipient of the actions that matters most.

And even if the recipient says nothing at the time, it’s unwise to assume that they don’t feel harassed. Many cases are only brought months or years after the alleged incident when the complainant leaves the company where the harassment took place. This is why having strong anti-harassment policies in place and conducting appropriate training is an essential part of removing the danger of harassment allegations from your company.

If you become aware that one of your employees is making a nuisance of themselves to another employee, even if it’s taking place outside office hours, you have a responsibility to intervene. First, discuss the matter with the target of the suspected harassment to establish their attitude. If they really are offended and feel harassed then raise the issue with the instigator of the nuisance and insist that their unwanted actions cease. You should document the whole process for any possible later developments.

While you, as an employer, have no way of judging what any particular  employee may consider intimidating or harassing behaviour it is up to you to respond to any complaints you receive. If you see something happening that could be considered as harassment then take immediate action to prevent its recurrence.

Prepare a workplace policy

Work with your legal advisors to prepare a workplace policy that outlines the definitions of sexual harassment and puts your employees on notice that such behaviour won’t be tolerated.

Conduct training sessions for all employees that communicate the details of the policy and give everyone ample time to ask questions if clarification is needed. Such training is mandatory in some jurisdictions.

You and your senior managers also need to be aware of anything happening in the business that could later be used as the basis for sexual harassment allegations. Part of this process will be to set up a confidential reporting system where employees who feel a situation is developing with a co-worker, or even an outside party such as a supplier or customer, can make a complaint.

Never assume that a sexual harassment problem will sort itself out or gradually disappear. It’s far more likely to simmer away and eventually become a much bigger problem than if action is taken early in its development.

Although there may be some uncertainty about whether an employee’s particular behaviour really does constitute harassment, you need to assume that the very receipt of a complaint is sufficient indication that the target employee believes it is and that is your trigger for action.