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McDonald’s sexual harassment scandal – lessons and tips for employers
May 5, 2026
After the CEO of McDonald’s claimed the company had “drawn a line under” its problems with sexual harassment, the Equality and Human Rights Commission has disagreed.
Our employment expert Damian examines why the McDonald’s case is relevant for employers in 2026 and lessons that can be learned.
The Equality and Human Rights Commission (EHRC) involvement began in 2023 when it was reported that over 100 UK employees of the fast-food chain had reported allegations of sexual harassment and bullying in the workplace.
The EHRC put a legal agreement in place with McDonald’s to monitor how and whether the company followed its obligations as an employer to prevent sexual harassment in the workplace. In the agreement McDonalds pledged to protect its staff from sexual harassment.
In April, McDonald’s boss Lauren Schultz was criticised for claiming that McDonald’s had “drawn a line under” its culture of sexual harassment. Now, the EHRC has publicly disagreed with that position.
Whilst the EHRC noted that it has seen significant improvement in the way staff were being treated, its continued involvement 3 years on suggests McDonald’s still has some way to go before it’s compliant with its obligations.
Since the introduction of the Workers Protection Act in October 2024, employers have a duty to take reasonable steps to prevent sexual harassment in the course of employment. Linked to this duty, employers can be held liable for the actions of any employees that commit sexual harassment in the course of employment under the Equality Act 2010.
Failure to protect employees from such acts could also lead to a serious breach of an employment contract if someone that is subjected to sexual harassment feels they have no option but to resign from their role with the employer. The employee can then go on to make a claim of constructive unfair dismissal against the employer.
Sexual harassment occurs when someone is subjected to unwanted conduct of a sexual nature. This conduct must have the purpose or effect of violating the victim’s dignity, or creating an intimidating, hostile, degrading, humiliating or offensive environment for the victim.
The EHRC code notes that ‘unwanted’ is interchangeable with ‘unwelcome’ or ‘uninvited’.
A single incident can be enough to amount to harassment. It is also important to note that sexual conduct that has previously been welcomed can become unwanted – therefore this is not a defence.
From October 2026, under the ERA 2025, an employer’s duties regarding sexual harassment will widen in scope. The duty to take reasonable steps to prevent sexual harassment will widen to all reasonable steps. This means that employers must consider and ensure they take every step reasonably possible to prevent employees from being sexually harassed during the course of their employment.
In addition to this, third parties who harass employees will fall into scope of the employer’s responsibility. Employers must ensure they prevent, and may be held liable for, any sexual harassment an employee is subjected to by a third party during the course of their employment.
At present, it is unclear what steps should be taken in order to comply with the “all reasonable steps” duty. The UK Government is due to publish regulations setting this out, and the EHRC is also likely to publish statutory guidance on this in the coming months.
Create the right culture – As employers, it is fundamental to make it clear to all employees that sexual harassment is against the law and this is not something you, as an employer are willing to cover up or ignore. All employees should be aware of your sexual harassment policy and be informed on how the employer will handle this. You must make it clear to colleagues that if anyone carries out sexual harassment, this may lead to them losing their jobs. Creating a culture where employees are not just trained, but encouraged to report sexual harassment (should it arise) means that employers are more likely to be able to comply with their duties.
Review policies – As the law around sexual harassment continues to evolve, employers should be regularly reviewing their policies to ensure they remain compliant. When reviewing your policy, you should consider whether your current policy for preventing sexual harassment and handling any complaints is working and whether the training you are providing to employees is effective. If an incident of sexual harassment does arise, you should review your policy immediately following the investigation, to consider what needs to change in order to prevent another incident occurring.
Consistent training – Continue to provide formal training to employees. This should be carried out consistently to ensure all employees are aware of what sexual harassment is. It should be tailored to your policies and specific risk factors. Training should also be given on handling and assessing risk to the appropriate people.
Maintain a record – When an incident of sexual harassment does arise, it is important that a clear record is kept. Within this record, it should note the steps being taken to prevent this from being repeated in the same way again. Evidence that you are working to prevent such incidences shows you are proactive in protecting your employees from sexual harassment.
If you would like help reviewing your policies or any advice when it comes to understanding what your duties are as an employer, get in touch with our employment law expert Damian Phillips on dphillips@darwingray.com, 02920 829 126 or using the contact form.
Additionally, we offer sexual harassment training, which we can deliver to your managers and employees on behalf of your organisation. These training sessions are bespoke to the organisation based on your organisation’s sexual harassment policies.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
