Why “workplace banter” is costing UK businesses thousands of £’s

Banter and UK workplace culture go hand-in-hand. Exchanging a joke and light-hearted humour can create a lively and enjoyable atmosphere. Plus, it creates chemistry which enables teams to work better together.

But when does a silly back and forth cross over into something more serious? Well, 57 tribunal cases in 2024 seemed to know exactly where that line was—and it’s precisely why businesses need to tread carefully. A misplaced joke or offhand comment can lead to claims of unlawful discrimination, and compensation in these cases is uncapped, with some specific cases going as high as £4.5 million.

So when does banter become harassment?

Glad you asked. Many businesses assume that if an employee doesn’t formally complain, it’s a non-issue. But legally, harassment occurs when conduct related to a protected characteristic—such as race, gender, or disability, creates an intimidating, hostile or offensive environment. What might start as “just a joke mate” can quickly escalate, and failing to intervene can be costly…

Still not sure? Look at the following real-life examples from last year:

• A colleague put his arm around another employee’s neck and asked for a kiss, claiming it was “harmless workplace banter”

• An employee repeatedly referred to her colleague as “more attractive” because of his skin colour, calling him a “babe” and asking to be his “second/work wife”

• Two colleagues joked about each other’s weight and hair loss, which led to offensive jokes about each other’s partners

While yes, these make for some pretty awkward reading now; most of these originally were passed off as banter and then later became legal issues. Employers have landed under intense scrutiny for failing to step in.

The fine line between friendly and unlawful

One of the biggest challenges for businesses is determining where the line is drawn. Context always matters. What might be acceptable between close colleagues on a night out probably won’t be acceptable in a meeting with the CEO, (obviously!)

A good rule of thumb? If you’d hesitate to repeat the joke in front of HR or in an employment tribunal, it’s probably best left unsaid.

How can I prevent harassment in my business?

Now you know what not to do, how can you minimise the legal risks in your business  and ensure everyone feels respected? Under the Workers Protection (Amendment of Equality Act 2010) Act 2023, which came into force in October 2024, businesses must take reasonable steps to prevent sexual harassment, which is often passed off as banter.

Here’s what our experts recommend:

• Set clear policies: Clear guidelines on acceptable workplace conduct should be a part of your company policy. Not sure where to start? BrightBase offers tons of customisable templates written by legal experts

• Provide regular training: Many cases stem from a lack of awareness. Training should cover what constitutes harassment, including how to handle sensitive topics and what crosses the line

• Encourage a speak up culture: Employees should feel comfortable raising issues without fear of retaliation. Have a clear and strong reporting system in place from the beginning

• Monitor workplace events: Office parties and social events can be a flashpoint for inappropriate behaviour, especially when alcohol is involved. Setting behaviour expectations beforehand can help prevent legal issues

• Lead by example: Managers and senior staff should model appropriate behaviour. If leaders engage in or tolerate inappropriate behaviour, it sets a really bad precedent for everyone else

Plus, with remote and hybrid work blurring professional boundaries, workplace banter is not just limited to the office.

Offhand comments in group chats or teams calls can still lead to legal claims. You can be held liable for offensive remarks made by staff outside of work hours if these remarks contribute to a toxic workplace culture. So keep your eyes peeled for behaviour that crosses the line.

Get case-specific advice from BrightAdvice

We get it—you spend over a third of your life at work, and nobody wants to work in a sterile, humourless environment. But you have to ensure that jokes aren’t made at the expense of your employees’ dignity and comfort.

Striking the right balance is key, and knowing when you need to step in can save your business from reputational and financial damage.

Having protective measures in place in the form of compliant document templates is the first step. If you need case-specific advice when issues arise, look no further than BrightAdvice.

Interested in learning more about our 24/7 professional legal advice helpline? Book a free demo with us or call us on 0800 470 2432.