Skip to content
Sunday 9 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
+0.17%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Sunday 17 November 2024 3:58 pm  |  Updated:  Friday 15 November 2024 10:15 am

What does the Al-Fayed case mean for employers?

By: Dan Parker

Add as a preferred source on Google
LONDON, UNITED KINGDOM - JULY 10: Mohamed Al Fayed attends the 'Chariots Of Fire' UK Film Premiere at Empire Leicester Square on July 10, 2012 in London, England. (Photo by Stuart Wilson/Getty Images)

The allegations against Harrods owner Mohamed Al-Fayed are particularly egregious, but they could have lasting ramifications for employment law, explains Dan Parker

The maelstrom of recent allegations of sexual harassment emerging from Mohamed Al-Fayed‘s ownership of Harrods is deeply concerning. On one hand, the task of reckoning with these allegations is likely to be enormous and painful for all concerned; on the other, it is both important and necessary.  

The last few years have seen a growing number of employers forced to conduct investigations whilst under intense public scrutiny – see, for example, the process regarding Christian Horner at Red Bull Racing – and there is a growing body of best practice as to what they should entail.  However, given the nature and timing of these ever-broader allegations, Harrods faces particular and potentially extreme challenges.

It is worth remembering that employers of all sizes are obliged to investigate issues raised by their own employees. There is a statutory Code of Practice for how employers should deal with such complaints, which can range from serious misconduct to interpersonal squabbles.  

Employers do sometimes face ‘X said, Y said’-type allegations, which may call less for findings of fact and more for solutions such as mediation.  Here, however, that is plainly neither possible nor appropriate. There is a justified desire to investigate and establish what has happened and to learn related lessons. 

Part of the difficulty of satisfying that is timing. The alleged perpetrator is now deceased. Others surrounding him may also have died, retired or simply moved on to careers elsewhere. A well established and large retailer such as Harrods should have a better ‘institutional memory’ than some other businesses; however, it is under different ownership, the retail industry is one of high staff turnover and recovering evidence from many years ago is likely to be incredibly difficult.  

Employment tribunals are not equipped to deal with historic allegations

For context, in most employment claims the employee is required to take the first step towards the Employment Tribunal within around three months of the incident complained of.  While the Labour government has pledged to extend that to six months, there is no sense that Employment Tribunals – let alone employers themselves – are equipped to deal with allegations from decades ago.  For this reason, it may well be necessary to explore other legal avenues for redress.

That is not to say that all attempts at accountability are futile. Serious and persistent wrongdoing rarely takes place in a vacuum. Questions will inevitably be asked about who knew about the alleged conduct and who may have condoned it through their inaction or, worse still, actively facilitated it. No doubt, Harrods is presently checking the whereabouts of any individuals referenced by those affected. If they are still employed by Harrods, there is no reason in principle why they could not still be sanctioned where appropriate.  

The law itself is changing to take a keener interest in these issues. From 26 October, changes to the Equality Act 2010 will come into force, obliging any Tribunal which has found sexual harassment to look at whether the employer took reasonable steps to prevent it.  If not, the complainant may receive up to 25 per cent in additional compensation.  

Expecting employers to be proactive, rather than merely responding to harassment allegation, is increasingly the norm

Expecting employers to be proactive, rather than merely responding to harassment allegation, is increasingly the norm. Timely guidance has just been issued by the Equalities and Human Rights Commission who has recommended that employers should look at risk factors such as ‘power imbalances’, ‘customer-facing duties’ and ‘the workplace demographic’. 

Clearly, these changes cannot address what has been alleged at Harrods in the past. However, the guidance provides a roadmap as to how it can send a swift and clear message to consumers, employees and potential recruits about its current values. Whether this shift in the law will make a broader impact upon sexual harassment at work is much harder to tell.   

 Dan Parker is senior associate in the employment and partnership team at Forsters

Read more

Fifa hits back at Trump and Egypt over refereeing bias claims

Getty Images logo on a modern building facade against a clear blue sky, representing a leading global visual content creator

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • Opinion

Categories

  • Opinion

People & Organisations

  • harrods
  • Mohamed Al-Fayed

Related Topics

  • Law firms

Trending Articles

  • Burnham facing calls to cut employment red tape as job seekers grow for 41 months

  • Government to inject millions into electric vehicle firms despite mandate backlash

  • Silence Therapeutics to Host Conference Call and Webcast to Discuss Topline Results from Phase 2 SANRECO Trial of Divesiran in Polycythemia Vera

  • Stop burying us in swollen corporate reports, says audit watchdog boss

  • Hargreaves Lansdown orders staff back to office

More from Morning Wire

  • Fifa hits back at Trump and Egypt over refereeing bias claims

    Sport Business
    Getty Images logo on a modern building facade against a clear blue sky, representing a leading global visual content creator
  • Football may not come home but US investors will still cash cheques here

    Sport Business
    GettyImages 2278935920 likely depicts a relevant scene or subject based on the unspecified context provided in the article.
  • Modon’s Hudayriyat Golf Estates Sets UAE Record With More Than AED 13 Billion in Sales Within Days of Launch

    Business Wire
  • Gianni Infantino: Democrats ask to quiz Fifa boss over Trump ‘corruption’ allegations

    Sport Business
    Donald Trump and FIFA President Gianni Infantino smiling, looking upwards during an event.
  • Music tycoon Simon Cowell sued by prominent City lawyer

    Lawsuit
    Simon Cowell smiling brightly during a press event, dressed in a classic tailored suit, showcasing his signature confident...
  • Prince Harry defeated in phone hacking legal battle against Daily Mail publisher

    Lawsuit
    Prince Harry, Duke of Sussex (Photo by Yui Mok - WPA Pool/Getty Images)
  • Neurodiversity, employment law and ‘reasonable adjustments’ – the new HR headache

    Law
    Four brown puppies playing on a green mat with pink toys and a paw-print blanket.
  • Staveley planning ‘big property play’ as she closes in on West Ham stake

    Sport Business
    Smiling woman with blonde hair and black sunglasses in a black coat
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook