JMW Solicitors’ experts provide coach and bus operators with legal advice concerning contract disputes and workplace harassment
What is the new duty to prevent third-party harassment?
The Employment Rights Bill is set to reintroduce employer liability for third-party harassment, a duty previously repealed in 2013. The provision is expected to come into force in October 2026.
This will require operators to take “all reasonable steps” to prevent the harassment of staff by third parties, such as passengers, in relation to all protected characteristics.
For operators, this change is particularly significant. Drivers and frontline staff often work alone or in public-facing roles, where operators have limited control over third-party behaviour. If an operator fails to take all reasonable steps and harassment occurs during employment, they may be held liable.
Harassment may arise from AI tools used in scheduling, communication, or monitoring
The duty applies to both employees and workers engaged under contracts to personally perform work. Operators should take steps to prepare for the change by reviewing training, reporting procedures, and support systems.
Artificial intelligence also presents new risks. Harassment may arise from AI tools used in scheduling, communication, or monitoring. For example, if speech recognition fails to understand certain accents or if automated messages contain discriminatory content, an operator who uses such tools may be directly liable.
Whether AI itself qualifies as a “third party” is unclear, but operators could still face claims if the technology causes or contributes to harassment. Operators using AI should assess risks and take steps to prevent discriminatory outcomes.
As the Bill nears Royal Assent, operators should prepare for the changes by reviewing policies, training, and technology use. Understanding the scope of the duty and implementing preventative measures will be essential to avoid legal exposure and ensure a respectful working environment for all staff.
How do I minimise the risk of my business being in a dispute over a contract and what are the warning signs of a dispute?
The most effective way to prevent a dispute is to ensure you have a well-drafted, written contract (or terms and conditions) in place which clearly outlines the terms agreed between the parties – for example, the scope of services, payment terms, liability, safety and compliance, key performance indicators (KPIs), etc. It can also set out the process for resolving any disputes that might arise.
It is important to ensure, prior to entering into any contractual relationship, the contract accurately reflects the intentions of all parties and sets out each party’s obligations. It can be a frustrating experience to discover that the terms of a particular contract are not what you thought they were or wanted them to be! Obtaining legal advice at this early stage is advisable.
This is particularly important in the coach and bus sector where contracts involve multiple parties such as operators, sub-contractors, local authorities and suppliers, and cover a wide range of services such as vehicle supply, driver provision, etc.
To narrow the scope of disputes arising, it is essential that contracts define things such as service levels, vehicle availability, and compliance with transport regulations.
Contractual disputes are sometimes unavoidable; however, they often come with warning signs.
Common indicators include:
- Late or non-payment, services not provided, KPIs not met – these can be tell-tale signs the business is in financial trouble or facing operational difficulties which you may be able to resolve through early discussion and compromise. For example, it could be where delays in vehicle delivery or maintenance have been encountered.
- Changes in tone of communication – if a party to the contract begins to write in a more formal tone, citing clauses within the contract, this could indicate they are gearing themselves up for a possible dispute.
- Breakdown in communication – if a party suddenly disengages from communication, it may be another indicator of an impending dispute.
Spotting these warning signs early gives you a chance to step in and sort out any issues before they turn into a formal dispute.
[Answers by Laura Hadzik, Partner; Laura Wharton; Partner, and Hayley Evans, Senior Associate, JMW Solicitors]
