The recent investigation into Foxtons has shed light on the important issue of workplace culture within the property sector.

The investigation conducted by media company Bloomberg detailed the disturbing accounts of former and current employees, highlighting incidents of inappropriate behaviour targeted towards junior colleagues.

More to do

Foxtons has publicly condemned these allegations, acknowledging that while progress has been made in recent years, there is ‘more to do’ to develop meaningful cultural change within the business.

Creating a positive and safe working environment is essential for businesses in the housing sector given their uniquely personal and trust-based relationships with clients.

To protect their employees, and their reputations, businesses should consider implementing practical measures to challenge misconduct, while recognising the legal consequences that stem from failing to address this behaviour.

Bullying

While there is no specific law that explicitly prohibits workplace bullying, businesses must remain wary of the potential legal implications of neglecting this issue

The absence of tailored legislation does not mean that businesses can afford to be complacent.

Bullying behaviours may fall under the Equality Act 2010 (EQA), which prohibits conduct that violates a person’s dignity or creates an intimidating environment. It is important to note that this conduct must be related to a ‘protected characteristic’, such as age, sex or disability, to be actionable under the EQA.

Proactive steps

The Worker Protection Act 2023 builds on the EQA by imposing a preventive duty on employers to take proactive steps against sexual harassment in the workplace.

This means that businesses must not solely react to instances of harassment, but actually implement measures to prevent them from occurring in the first place.

Certain forms of bullying may be covered by the Protection from Harassment Act 1997 (PFHA). The Act does not clearly define harassment; however, case law indicates that behaviour must be oppressive and unacceptable.

Employers can be held liable for the conduct of their employees under both the EQA and PFHA. Also, if an employer is aware of instances of bullying, and fails to take adequate action to protect its employees from harm, it may be held legally responsible in a claim of negligence.

Property businesses must ensure that anti-bullying policies and procedures are not only in place, but fit for purpose.”

To steer clear of the legal risks, property businesses must ensure that anti-bullying policies and procedures are not only in place, but fit for purpose.

Foxtons has recently detailed a number of significant changes to its exit procedures, most notably the establishment of a ‘confidential whistleblowing process’.

The company has also strengthened its ‘equality, diversity and inclusion’ policies, and clear, easily accessible policies are a crucial first step in establishing  zero tolerance towards misconduct.

Reinforced

However, it is essential that these policies are reinforced through practical efforts, including regular training sessions aimed at educating employees about their rights and responsibilities.

While Foxtons has already implemented annual ‘respect and inclusion training’, the business may consider adding further in-depth training targeted at managers, HR personnel, and staff members who handle misconduct complaints.

This ensures that everyone is adequately equipped to recognise and respond to inappropriate behaviour effectively.

Creating a positive and safe working environment cannot rely solely on PR statements and annual training sessions.”

Ultimately, creating a positive and safe working environment cannot rely solely on PR statements and annual training sessions.

Property businesses must ensure that they foster environments in which employees feel comfortable challenging inappropriate behaviour, knowing that it will be adequately handled.

Toxic cultures

When employees are able to raise concerns without fear, businesses are able to effectively mitigate risks before they escalate into larger issues, and prevent toxic cultures developing.

Prioritising accountability through consistent enforcement of policies and procedures through disciplinary action is paramount.

By taking action to tackle inappropriate conduct, property businesses can work towards protecting their employees whilst also maintaining their reputation and trust with their customers.

Thomas Beale is Partner and Head of the Bullying and Harassment team at Bolt Burdon Kemp