The UK’s Employment Rights Bill, which is now in its very final stages, will re-introduce employer liability for harassment by third parties. This is significant for many employers, but raises particular risks for those who use coworking and other shared office spaces. In this article, we consider the problem of coworking spaces and harassment and what employers can do to mitigate the risks, including working with landlords and buildings management.
It is estimated that in 2024 nearly five million individuals worldwide worked from coworking spaces, up 158% from 2020. This uptick has, in part, been driven by the increase in remote working models, startups and a surge in demand post-pandemic for working spaces that offer flexibility to scale up or down depending on business needs. Coworking is an arrangement in which individuals or groups of employees from different organisations share the same workspace. An individual or business may rent a single desk or area within an open plan space or rent a private office within that space on a short or long-term basis. Facilities are often shared amongst those who use the coworking space.
However, whilst employers have a degree of control over their own employees in coworking spaces, others sharing the space are likely to be third parties that the employer has no relationship with. The employer cannot exercise any effective control over these other individuals, creating an inevitable risk area for employers in respect of harassment of their own staff by third parties – including the risk of sexual harassment. Particular risk areas include the following:
Since 26 October 2025, UK employers have been required to take “reasonable steps” to prevent sexual harassment of its employees in the course of their employment. This is an anticipatory duty, which creates a positive legal obligation for employers to try to stop sexual harassment from happening in the first place by taking reasonable steps to prevent it. From October 2026, this is due to become a duty to take “all” reasonable steps. The Equality and Human Rights Commission (EHRC) emphasises that the duty covers sexual harassment from customers, clients and other third parties (and suggests that it expects employers to treat sexual harassment by third parties as equally as seriously as harassment within the workplace). The EHRC can take enforcement action on that basis.
Although currently employees cannot bring an Employment Tribunal claim for harassment by third parties, that is set to change soon. The Employment Rights Bill will make employers directly liable for harassment of staff by third parties unless they can demonstrate that they took “all” reasonable steps to prevent the harassment from occurring. This applies to every type of harassment – not just sexual harassment – and is expected to apply from October 2026. A “third party” is anyone who is not the employer or a fellow employee, so it is clear that fellow users of a coworking space will be covered.
If a member of staff reports a potential incident of sexual harassment, usually their employer would seek to investigate. This becomes more difficult when the alleged harasser is not an employee and so cannot be compelled to participate in the investigation, but employers will still need to take what steps they reasonably can. These include the following:
Employers should, prior to agreeing terms to take coworking space, engage with the landlord and its building management team to identify what measures are in place to protect users of the building against harassment – so that both parties are clear on the standards expected for the building.
Both the legal and reputational risk for landlords and occupiers in coworking spaces means the form of occupational agreement adopted for the building (whether that be a lease, licence or other form of agreement), and other building regulations or protocols which support it, should be used collectively to allocate responsibility, create practical mitigation measures and provide clear and enforceable remedies against all occupiers of the building in the event of any type of harassment.
A landlord of a building can also factor in ways to mitigate the risk when designing space (adequate lighting, sightlines and signage etc). An employer can verify that all of these measures are in place as part of fulfilling their duty to take reasonable steps to prevent harassment, and should also inspect any building and undertake a risk assessment before signing up to take the space.
Employers can also work with building management and landlords to ensure they understand the importance of taking steps to prevent harassment. For example, employers should consider:
As coworking spaces continue to reshape the modern workplace, they are not immune to the challenges faced by more traditional work environments – particularly when it comes to sexual harassment. The informal, fluid nature of these spaces can blur boundaries and weaken accountability, creating gaps in protection. It also limits the steps that employers can take to mitigate risks, given the lack of control over third parties sharing the space. Addressing this risk requires a proactive approach: clear policies, accessible reporting mechanisms, and encouraging a culture where employees feel able to speak up and report inappropriate behaviour.
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