Employers must take allegations of historic abuse seriously, as the recent reports against former Harrods boss Mohamed Al Fayed remind us.
Historic allegations are by their very nature difficult to investigate. Often, witnesses will no longer be employed by the business, be untraceable or, in some circumstances, have died.
The recent publication of historic allegations of sexual harassment and rape by ex-employees of Harrods against Mohamed Al- Fayed have come at a significant cost to the new owners of that business.There is an obligation on employers to take such matters seriously, particularly where an allegation is raised by one current employee against another.
As with the position adopted by Harrods, an employer is unlikely to be able to rely on limitation periods to avoid liability. Instead, they are likely to find themselves in an indefensible position, requiring careful management and financial cost.
Read more: Harrods allegations: How should HR hold power to account?
Employers who find themselves facing historic allegations might wish to limit the damage by incorporating non-disclosure (gagging) clauses into any settlement. But even those have their limitations. A non-disclosure agreement cannot prevent the individual from reporting potential criminal conduct such as sexual harassment or rape to the police or, where relevant, to an appropriate regulator.
While the individual may be restrained from reporting allegations of sexual harassment to the press, any...
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