If your employees report harassment, your actions — or lack thereof — could either build or break your business

Let’s get to the point: if you do not take harassment seriously, it will come back to haunt you. And cost you — dearly.

We have all heard horror stories of workplace conflicts or harassment, but there is one often-overlooked scenario that could be an employer’s downfall: harassment by third parties.

This is not about employees misbehaving; it is about outsiders — clients, customers, even family members of employees — targetting your staff. Under the Occupational Health and Safety Act and the Ontario Human Rights Code, an employer is legally obligated to step in, investigate, and protect its employees. And we don’t mean investigations conducted by costly outside firms. Internal investigations will do.

Not doing so is not only a risk to your reputation; it could lead to substantial financial penalties, and a recent Ontario Superior Court decision drives this point home.

Here is the cautionary tale of Stride v. Syra Group Holdings, in which the employer found itself paying a hefty $175,000 for general and moral damages, as well as eight months’ wrongful dismissal pay, after it failed to respond appropriately to harassment. The victim? A 43-year-old property administrator who had worked for the company for only four years. (In other words, someone who, if warranted, could have been terminated without cause for a small fraction of that amount.)

The source of the harassment were two brothers, Dwayne and Jamie — tenants of the apartment complex where the plaintiff worked and lived. Initially, their anger was simple: they were upset that the plaintiff had been hired for the administrator role instead of Jamie. But things quickly escalated.

Dwayne verbally threatened the plaintiff and even went as far as kicking in her dog’s teeth. As if that was not enough, Jamie sexually harassed the plaintiff, slapping her buttocks in front of other tenants.

The plaintiff reported these incidents to her employer. What was their response? They told her to call the police — which she did. The brothers were arrested, convicted, and banned from the property. But here is where things became worse: the employer failed to take any steps to investigate the claims, prevent future incidents, or even implement basic safeguards like a security system or harassment policies.

The plaintiff, understandably shaken by the abuse, developed mental health issues and went on medical leave. In response, the employer demanded she provide medical documentation, including a diagnosis, before returning to work. When she submitted a note from her doctor stating that she was not ready to return, the company terminated her while she was still on medical leave — a move that redounded badly.

Justice Brown, who presided over the case, did not hold back in her decision. She criticized the employer’s conduct as “unreasonable, incomprehensible, negligent, and reprehensible.” The employer had failed at every turn — no investigation, no action, no policy, no prevention. Not only did they ignore the harassment, but when the employee had the courage to speak up, the employer retaliated by firing her while she was on medical leave.

This case underscores what not to do in handling workplace harassment  —and it is a goldmine for any employer looking to avoid a similar fate.

Key lessons for employers

Here is the bottom line: employers have a duty to protect their workers from harassment, whether it is perpetrated by co-workers, clients, or third parties. If your employees report harassment, your actions — or lack thereof — could either build or break your business. The court was clear: if you fail to investigate, fail to address the issue, and fail to implement proper policies and safeguards, you will face legal consequences.

Here are three key takeaways for employers looking to avoid costly mistakes:

1. Know your policies: Make sure you implement, understand and enforce policies about harassment and discrimination. Employees need to know they have a clear channel for reporting, and you need to know how to respond. Training is critical.
2. Take complaints seriously: When harassment is reported, treat it with the seriousness it deserves. That means investigating promptly, not passing the buck, and taking appropriate action — whether it is discipline, termination, or improved safeguards.
3. Resolve the issue, don’t sweep it under the rug: Make sure that, once the complaint is addressed, the employee knows what steps were taken and what the outcome was. A safe, harassment-free work environment is not just a moral obligation; it is a legal one.

A reminder for employees

You have the right to work in a safe environment free from harassment, violence, and offensive behaviour. If you are being harassed at work, do not suffer in silence. Report it. If your employer fails to act, consider seeking legal counsel to ensure your rights are protected.

Remember: criminal charges are not required to trigger an employer’s obligation to investigate. The moment harassment is reported, it is your employer’s responsibility to respond with action.