Lessons from Lidl

Lidl has entered into a legally binding agreement with the Equality and Human Rights Commission (EHRC) following the employment tribunal case of Hunter v Lidl GB, which found the company had failed to take reasonable steps to prevent sexual harassment. The agreement means Lidl must make changes to better protect employees and prevent harassment in the workplace.

While the headlines focus on one major retailer, the implications reach far beyond. For all employers, the case highlights how regulators are taking a tougher stance on workplace culture and employer responsibilities. It’s a reminder that a lack of robust policies, training and reporting processes can quickly lead to legal and reputational risk.

Employers of all sizes are legally responsible for protecting staff from harassment. The law is clear: under the Equality Act 2010, you can be held liable if an employee is harassed unless you can show you took “reasonable steps” to prevent it.

What the Lidl case shows is that regulators are willing to step in where there’s evidence that employers haven’t done enough. The EHRC has powers not just to investigate but also to impose binding agreements, and smaller businesses are not immune from that scrutiny.

What can you learn from this

For businesses of all sizes, the lessons are practical as well as legal:

• Policies alone aren’t enough. It’s not sufficient to have a policy sitting in a handbook. Employers need to demonstrate that staff are aware of it, that it is regularly reviewed, and that it is followed in practice.
• Training is essential. Managers and staff should receive regular, practical training on what harassment looks like, how to challenge it, and how to raise concerns.
• Reporting procedures must be clear and trusted. Employees need a safe, confidential way to report harassment and confidence that their concerns will be acted on.
• Culture starts at the top. Leaders set the tone. If managers dismiss or downplay issues, that attitude filters through the organisation.

How to reduce the risk in your own business

There are some straightforward steps you can take to strengthen your position. Review and refresh anti-harassment and equality policies, making sure they are clear, accessible and up to date. Training should be provided to all staff, especially line managers, and should go beyond theory to deal with practical, real-world scenarios. Just as important is ensuring there are safe and confidential reporting channels in place, backed up by timely and impartial investigations when concerns are raised. And finally, it’s wise to keep thorough records of the training delivered, the communications sent to staff, and the actions taken in response to complaints. These records may prove crucial if you ever need to show that your business took “all reasonable steps” to prevent harassment.

The Lidl ruling is a timely reminder that preventing harassment is not a box-ticking exercise but a legal and cultural obligation. It is vital to be proactive, creating a safe, respectful environment and showing regulators, employees and clients that your business takes its responsibilities seriously.

If you’re concerned about whether your policies and practices are doing enough to protect your staff and your business, our Sexual Harassment Compliance Service will guide you through the process. We’ll review your current procedures, provide tailored training for managers and staff, and put in place the right safeguards to reduce risk.