Under the Equality Act 2010, employers are liable for discriminatory acts carried out by employees in the course of their employment. However, employers have a defence if they can demonstrate that they took all reasonable steps to prevent their employees from committing those acts. These principles are illustrated by the recent case of Campbell v Sheffield Teaching Hospitals NHS Foundation Trust, where the Employment Appeal Tribunal (EAT) upheld an Employment Tribunal’s decision that an employer had no liability for racial harassment because it did not occur in the course of employment. The EAT also ruled that the employer had taken all reasonable steps to prevent the harassment.