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Legal Experts, Richard Reed Solicitors are warning that workplace “banter” can create significant legal, financial, and reputational exposure for organisations ahead of enhanced employment protections coming into play.
The stark warning comes as businesses across the UK are being urged to review workplace culture, policies, and management practices as evolving employment legislation places greater responsibility on employers to prevent harassment and discrimination in the workplace.
It’s well acknowledged that banter has long been part of workplace life, with humour, teasing and informal chat, often treated as harmless. But left unchecked, it can become bullying, harassment and discrimination, exposing businesses to legal, financial and reputational risk.
For employers, that means understanding discrimination, setting clear standards and acting early when conduct falls short. Kat Moody, Associate Solicitor at North East based Richard Reed Solicitors says “Employers are increasingly judged not only on written policies, but on workplace culture.” Kat warns that “Workplace culture is defined by what managers tolerate, encourage or fail to challenge, leadership defines workplace culture by what it laughs at, and what it ignores.”
The Employment Rights Act 2025 is expected to strengthen protections for employees and place greater responsibility on employers to prevent harassment and unwanted conduct in the workplace. The legislation reinforces that any unwanted behaviour related to a protected characteristic, or conduct of a sexual nature, which has the purpose or effect of violating an individual’s dignity or creating an intimidating, hostile, degrading, humiliating, or offensive environment, may constitute unlawful harassment.
Under the updated framework, employers are required to take proactive and reasonable steps to prevent sexual harassment in the workplace. This marks a shift toward a more preventative approach, placing increased emphasis on organisational accountability rather than solely addressing issues after they arise.
The changes, which build on amendments introduced under earlier equality legislation, further clarify employer obligations and expectations regarding workplace culture and employee safety. Since October 2024 organisations have been expected to demonstrate active compliance with preventative duties, including the implementation of appropriate policies, training, and reporting mechanisms.
In addition, the reforms introduce stronger consequences for non-compliance. Employment tribunals may increase compensation awards by up to 25% where it is found that an employer has failed to take adequate steps to prevent sexual harassment, underscoring the importance of effective preventative measures and robust workplace safeguards.
The issue matters even more as workplace communication extends beyond the office. “What begins as ‘just banter’ can ultimately expose a business to significant financial liability,” Kat added, with Tribunal decisions reinforcing the point. In one case, a woman exposed to male colleagues watching pornography at work succeeded in a harassment claim after saying it created a degrading and hostile environment. The Employment Appeal Tribunal confirmed that delaying her complaint did not weaken her claim. Silence should not be seen as acceptance.
Other cases show how workplace culture can become evidence. Tribunals may consider whether nicknames, insults or jokes formed part of the workplace culture. Kat said: “A workplace culture of banter may explain behaviour, but it can become evidence of a toxic environment.”
Appearance-based comments remain high risk. Employers should be especially cautious about humour relating to appearance, age, race, gender, disability, sexuality, religion or identity.
Digital communication also expands the risk. WhatsApp groups, Teams chats, Slack messages, memes, GIFs and emojis are now regularly disclosed in investigations and Tribunal proceedings. The consequences can be severe, compensation may include injury to feelings, psychiatric injury, aggravated damages, future financial loss and loss of earnings.
Legal awards are only part of the impact. Employers may also face reputational damage, staff turnover, sickness absence, reduced morale, recruitment difficulties and management time spent on grievances. As scrutiny of workplace culture grows, Kat believes employers should focus on prevention rather than reaction. “Employers need to look beyond policies and focus on culture,” she said. “A joke, nickname or meme shared in seconds can lead to significant legal and reputational consequences.”
