Employer Liability for Sexual Harassment: How to Reduce Legal Risks
Gretel Uretezuela2025-03-20T08:29:54-04:00Workplace sexual harassment can create significant legal and financial risks for employers in Ontario. Under the Ontario Human Rights Code (OHRC) and the Occupational Health and Safety Act (OHSA), employers are legally required to prevent and address harassment in the workplace.
Failure to meet these obligations can lead to lawsuits, regulatory penalties, reputational damage, and employee retention challenges. Employers who do not take proper steps may face claims before the Human Rights Tribunal of Ontario, Ministry of Labour inspections, or even wrongful dismissal lawsuits.
By implementing effective policies, training programs, and legally sound workplace investigations, organizations can reduce their liability and create a safer work environment.
1. Develop a Workplace Harassment Policy
A legally compliant harassment policy is a key safeguard for employers. It should:
- Define sexual harassment with clear examples.
- Outline how employees can report concerns.
- Explain how complaints will be investigated and resolved.
- Be reviewed regularly to ensure compliance with Ontario laws.
Employers should also follow the Code of Practice to Address Workplace Harassment, which guides on meeting OHSA requirements.
2. Provide Workplace Harassment Training
Employers are legally required to provide harassment prevention training. Regular training helps employees and management understand:
- What constitutes workplace sexual harassment.
- How to report harassment and what protections exist against retaliation.
- Employer obligations under the OHRC and OHSA.
A well-trained workforce can help prevent legal disputes by ensuring that employees and managers know their rights and responsibilities.
3. Establish Effective Reporting Mechanisms
Employers should provide safe and confidential reporting options to encourage employees to report concerns without fear of retaliation. Best practices include:
- Offering multiple reporting channels, such as HR, designated managers, or external services.
- Ensuring all complaints are documented and addressed promptly.
- Training managers and HR personnel on proper complaint handling.
Without clear reporting procedures, employers may face legal claims for failing to respond appropriately.
4. Conduct Proper Workplace Investigations
Under Ontario law, employers must investigate all harassment complaints in a timely and fair manner. A proper workplace investigation includes:
- Gathering relevant evidence and speaking to witnesses.
- Keeping findings as confidential as possible.
- Taking corrective action based on the investigation’s outcome.
Failure to investigate harassment claims properly can result in legal complaints, fines, or orders from regulatory bodies.
5. Take Corrective Action When Necessary
If an investigation confirms harassment, employers must take appropriate action, which may include:
- Issuing verbal or written warnings.
- Suspending or terminating the harasser.
- Implementing workplace adjustments to prevent further issues.
Employers that fail to address confirmed cases of harassment may face legal claims, reputational damage, and increased liability risks.
6. Monitor and Improve Workplace Culture
Employers should take proactive steps to prevent harassment and improve workplace culture, such as:
- Conducting regular reviews of harassment policies.
- Monitoring for signs of a toxic work environment.
- Using employee surveys to assess workplace culture.
A proactive approach can help prevent workplace disputes before they escalate into costly legal claims.
7. Seek Legal Guidance from an Employment Lawyer
Ontario’s workplace harassment laws can be complex. Employers should consult a lawyer to:
- Draft and review workplace policies for compliance.
- Conduct independent investigations when necessary.
- Defend against legal claims related to workplace harassment.
Legal guidance helps businesses protect themselves from liability while ensuring compliance with Ontario employment laws.
Conclusion
Employers in Ontario have a legal duty to prevent and address workplace sexual harassment. A failure to take appropriate action can lead to serious legal and financial consequences.
By implementing clear workplace policies, training employees, ensuring proper reporting mechanisms, and seeking legal guidance, employers can reduce their risks and maintain compliance with Ontario workplace laws.
Contact Achkar Law
If your organization requires assistance with workplace harassment policies, investigations, or legal defence, Achkar Law can help. Our employment lawyers provide tailored legal guidance to protect your organization.
Call us toll-free at 1-800-771-7882 or email [email protected] for professional legal assistance.