Out-Law News

Lloyd's of London fines underwriter £1m fine after 'boys' night out'

Trish Embley tells HRNews about anti-harassment training for managers

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    Lloyd’s of London has issued the largest fine in its history. The action was taken against underwriting group Atrium for behaviour that included ‘systematic bullying’ and the sexual harassment of female staff on an annual ‘boys’ night out’. As the BBC reports, the misconduct has led to a fine of £1,050,000, the largest ever imposed by Lloyd's independent disciplinary committee and its first for non-financial misconduct. Atrium must also pay Lloyd's costs of in excess of £500,000.

    The news has been widely covered in the national press. The FT reports the conclusions of Lloyd’s enforcement board. They said there were ‘serious failures’ by senior managers within Atrium over a number of years, and a culture that it said ‘tolerated instances of unacceptable conduct involving discrimination, harassment and bullying’. One employee’s misconduct was apparently well known within Atrium but the company had failed to protect the junior employee once it became aware of the matter even though its own investigation made findings of serious misconduct. Instead, Atrium settled with the employee and allowed him to resign. Lloyds said that decision was motivated in part by the desire of a senior manager to protect Atrium from bad publicity as well as the desire to limit the impact on the business unit involved.

    Meanwhile the other harassment news story has been picked up by People Management. They report how the UK has become the eleventh country to ratify the International Labour Organization’s Violence and Harassment Convention which, when it comes into force next year, will create a duty for employers to protect employees from all forms of harassment, including from third parties such as customers or clients. The treaty is designed to protect employees “irrespective of their contractual status”, meaning it will protect interns, job applicants, apprentices, and those whose employment has been terminated. The Work and Pensions Secretary Thérèse Coffey delivered a speech to mark the UK’s ratification of the Convention and confirmed that the government remains committed to strengthening legal protection in this area.

    On that, progress has been slow. It has been 8 months since publication of the government’s response to its ‘Sexual Harassment in the Workplace’ consultation with the promise to introduce a new positive duty on employers to prevent harassment. So. whilst current legislation requires employers to take all reasonable steps to prevent workplace harassment, that would be beefed with a new duty on employers designed to force them to be more proactive.

    One aspect of that new duty, when we see it, will undoubtedly be around harassment training. That has always been important but, in the past, it has tended to be a reactive step taken by employers who have faced harassment claims. That will need to change, we think, with HR professionals well placed to lead the way in getting those training programmes rolled out. So, let’s hear more about that. Trish Embley is our Head of Client Training and she joined me by video link from Birmingham to discuss the proposals:

    Trish Embley: “Really, looking at the proposals from the government to me it is just building on what I would say is the existing direction of travel in terms of what employers are obliged to do with harassment in the workplace and particularly anti-harassment training. So we had not so long ago and EAT decision, Allay Limited v Gehlen, that basically said you can’t take a ‘tick box’ approach to preventing harassment in your workplace. I think they put it quite nicely in that judgement where they  said it is not good enough to get your employees together and say, ‘come on everyone, don’t harass each other, not back to work’. So when we look at this term ‘prevent’ it has got to be outcome-focused. So, I think many employers are looking at anti-harassment training and they might, for example, produce 15 minutes of e-learning for their employees. Now the question I would ask there is whether that is actually going to change culture and outcomes. I think it is a great starting point, I think you can get across some of the complex issues that have to be considered around where is the line drawn with banter, what is the relevance of intent, however, I think we are going to have to take that to the next stage and by that, I mean discussing things like harassment in team meetings or workshops or on-site gatherings and meetings because there are a lot of complex issues in harassment. There is that balance with not wanting to work in a sterile work environment and many of our clients, in their values, will talk about bringing your whole selves to work and how work should be a fun place, so it is really, I think, going that next stage with prevention in terms of a deeper dive into training around behaviours, what you can do, what the outcome of any action might be and particularly, I think, offering those who are victims of harassment a lot of comfort about why this will not be career limiting, this isn’t a negative thing for you to do, it’s something that the organisation want people to speak up on and they are encouraging people to speak up, and demonstrating that, how they are creating that culture.”

    Joe Glavina: “Can I ask you about reputation, Trish? Previously harassment training has been used as evidence to support an employer’s ‘reasonable steps’ defence in the tribunal. Going forward, when this new duty comes in, employers will be at risk of being ‘called out’ by anyone, potentially, who thinks they are failing in their duty. Do you agree?”

    Trish Embley: “Yes, absolutely. We‘ve seen over the years that reputation and keeping to ‘brand values’ have overtaken, I would say, employers’ concerns about litigation. So, again with this proactive duty becoming this sort of stand-alone mandatory duty it will, I think, raise the profile of the importance of employers actually taking positive steps in the workplace to change the culture and to combat harassment. I think as that awareness is raised more people will be prepared, whether that be through social media or the broader media itself, to speak up and say look my employer isn’t complying with the statutory duty and even if they don’t bring tribunal claims I think that in itself will be a driver for employers to say look this has got to become a real priority now for us.”

    Trish mentioned e-learning. We do have a pair of e-learning modules on the subject of sexual harassment, one for employees and one for managers which take roughly 40 minutes to complete and which include a number of exercises throughout, and questions to test understanding. As to cost, we don’t operate the typical subscription model that you see with the vast majority of e-learning courses on the market which base the cost on the number of users. Instead all the modules come with a licence for an unlimited number of users which means hundreds of people can all be trained for a one-off purchase cost, with the option to repeat the training as many times as you like without any further cost. The two harassment modules cost £3,750 each. Included for that cost is a degree of tailoring – adding your organisation’s logo throughout and including your organisation’s policies and procedures and any other documentation you'd like to add.

    If you would like to have a closer look at any of the modules you can, we are offering a free demonstration so please do get in touch if this might be something you want to consider for your staff. Contact details are on the screen for you.


    - Link to government response to consultation on sexual harassment in the workplace

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