Sexual harassment in the workplace is not limited to interactions between employees. Increasingly, Australian employers are being held accountable for misconduct perpetrated by customers, clients, suppliers, contractors, and other business partners. Under the Sex Discrimination Act 1984 (Cth), as amended by the Respect at Work reforms, employers now have a positive duty to take proactive and meaningful steps to prevent sexual harassment and related unlawful conduct—regardless of who the perpetrator is.
What Is Third-Party Sexual Harassment?
Third-party sexual harassment happens when someone outside the organisation—like a client, patient, customer, or contractor—harasses a worker. This type of harassment is especially common in sectors such as:
- Retail and hospitality
- Healthcare and aged care
- Transport and logistics
- Professional services and consulting
- Financial services
- Education and training
Why It Often Goes Unnoticed
Unfortunately, third-party harassment often gets ignored. That’s because:
- Employees feel pressure to keep clients happy, even at their own expense
- Leaders worry about losing clients or damaging business relationships
- Organisational culture may tolerate harmful behaviour from “important” customers
- Workplace policies often fail to mention third-party harassment
To change this, leaders must take ownership and send a strong message: harassment from anyone will not be accepted.
Your Legal Duty Regarding Preventing Sexual Harassment by Customers
The Respect at Work reforms introduced a positive duty for employers and business operators (PCBUs). This means you must take reasonable and proactive steps to eliminate, as far as possible:
Sexual Harassment
This happens when someone:
- Makes an unwelcome sexual advance
- Asks for sexual favours
- Behaves in a sexual way that offends, humiliates, or intimidates another person
A reasonable person should expect that the behaviour would cause harm.
Sex-Based Harassment
This refers to unwelcome conduct because of a person’s sex, even if it’s not sexual in nature. For example:
- Making jokes or comments about someone’s gender
- Doubting someone’s ability because they are male or female
- Excluding someone from meetings or decisions based on gender
Hostile Workplace Environment
A hostile environment occurs when a workplace feels offensive or unsafe because of someone’s sex, even if the behaviour isn’t aimed at anyone in particular. For instance:
- Inappropriate jokes or posters
- Sexualised conversations
- Cultural norms that treat one gender as inferior
Victimisation
Victimisation happens when a person suffers harm because they:
- Report harassment
- Help someone else to make a report
- Take part in an investigation
This can include bullying, job loss, being isolated, or receiving unfair treatment after speaking up.
Strategies for Preventing Sexual Harassment by Customers and Business Partners
Here are five practical ways you can reduce the risk and meet your legal obligations.
1. Update Your Policies
Start by reviewing your current policies. Make sure they:
- Clearly cover harassment by customers, clients, and suppliers
- Include simple definitions and examples
- Explain how the organisation will respond—even if the harasser isn’t an employee
2. Offer Safe Reporting Options
Give employees easy ways to report concerns. For example:
- Use confidential online forms or hotlines
- Train managers to handle reports fairly
- Avoid asking employees to manage the situation themselves
3. Train Your People
Run regular training that includes real examples of third-party risks. Focus on:
- What counts as unlawful behaviour
- How bystanders can respond
- When to escalate a concern
- Rights under the Sex Discrimination Act
Make sure managers and frontline workers know how to act quickly and safely.
4. Set Clear Expectations with External Parties
Tell your customers and partners what behaviour you expect. You can:
- Include respectful conduct clauses in contracts
- Add behaviour rules to supplier codes of conduct
- Communicate zero tolerance through signage, welcome packs, and onboarding
Also, reserve the right to end the relationship if misconduct occurs.
5. Respond Quickly and Fairly
When someone reports a problem, act fast. That means:
- Listening to the worker
- Making changes to protect their wellbeing
- Documenting the process and outcome
- Following up to make sure they feel supported
Don’t allow revenue or reputation concerns to block fair treatment.
Preventing Sexual Harassment by Customers and Partners Examples
- A hotel group added behavioural clauses to all supplier contracts. After a staff member reported harassment, the hotel paused the contract and launched an investigation.
- A consulting firm ended a high-value client relationship after repeated issues with the client's executive team.
- A retail brand displayed “zero tolerance for harassment” signage and improved staff confidence through reporting and response training.
Building a Safer and More Respectful Culture
Preventing harassment isn’t just about avoiding legal trouble. It’s about creating a culture of respect and safety—for everyone.
The Respect at Work reforms make it clear: employers must act before harm occurs. That’s why the positive duty exists. It pushes all Australian workplaces to move from a reactive to a proactive approach.
When you lead with integrity, you protect your people—and your business.
**Related Reading: **
Using the Violence Pyramid to Prevent Sexual Harassment