Dealing with claims of harassment

My sales manager was joking around with my secretary. Now, she's alleging she's been sexually harassed. He says they were just having fun. Should I just ignore her complaint?

AL Roy, London

You should make clear to the employee you take her complaint seriously. It is not safe to ignore it because otherwise you are risking a sex discrimination claim on the basis of sexual harassment.

In the case of discrimination claims, the potential damages are unlimited and therefore it can be very costly to make a mistake.

You should instigate an immediate investigation under the terms of your grievance procedure, ensuring confidentiality is maintained as far as possible.

The investigation will involve you interviewing your secretary, the sales manager and any witnesses to the incidents and taking detailed statements.

Matters to consider include: were the actions alleged to have been carried out by the sales manager clearly offensive in themselves when viewed objectively?

If not, did your secretary make clear to the sales manager that his actions were unwanted and, once this happened, did his behaviour persist or stop?

Remember that it is what the employee finds offensive that counts. You cannot judge the case on what you would have found offensive. If on the balance of probabilities there is a case to answer, then you should commence disciplinary action against the sales manager.

Finally, inform the employee of the outcome of the investigation and the company's conclusions.

In future, make sure you put an anti-harassment policy in place and provide your staff with training on equal opportunities. This will give you a line of defence to possible sexual discrimination claims based on sexual harassment committed by other members of staff.

John Emmins, national chairman, Federation of Small Businesses

The opinions expressed are those of the author and are not held by the BBC unless specifically stated. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.