Workplace Discrimination Claims:

A Guide for Employees and Employers

Discrimination at work is governed by the Equality Act 2010 (EqA 2010). This guide explains what counts as unlawful discrimination, who is protected, when employers can be held liable, and what compensation is available, including upcoming changes under the Employment Rights Act 2025.

What Counts as Workplace Discrimination?

The Equality Act 2010 protects people from unfair treatment at work because of a "protected characteristic". The protected characteristics are:

● Age
● Disability
● Gender reassignment
● Marriage and civil partnership
● Pregnancy and maternity
● Race
● Religion or belief
● Sex
● Sexual orientation

The law protects job applicants, employees, contract and agency workers, partners, LLP members, office holders and several other categories of worker, not just those on a standard employment contract.

The Four Main Types of Discrimination

Direct discrimination

Direct discrimination happens when someone is treated less favourably than others because of a protected characteristic. This includes being treated badly because of someone else's protected characteristic (for example, a parent of a disabled child) or because of a mistaken belief that you have a particular characteristic. Direct discrimination cannot usually be justified by the employer, except in limited cases involving age or where a genuine "occupational requirement" applies.

Indirect discrimination

Indirect discrimination occurs where a rule, policy or practice applies to everyone but puts people who share a protected characteristic at a particular disadvantage, for example, a blanket requirement to work full time, which can disadvantage women with childcare responsibilities. Unlike direct discrimination, an employer can defend an indirectly discriminatory policy if it can show the policy was a proportionate way of achieving a legitimate business aim.

Harassment

Harassment is unwanted conduct related to a protected characteristic that violates someone's dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment. It also covers unwanted conduct of a sexual nature, and less favourable treatment because someone rejected or submitted to such conduct. A single incident can amount to harassment.

Victimisation

Victimisation occurs when someone is subjected to a detriment because they have done, or are believed to have done, a "protected act", such as raising a discrimination complaint, giving evidence in someone else's discrimination case, or alleging that discrimination has occurred. Employees are protected from victimisation even after they have left a job, and even where the complaint they raised did not ultimately succeed.

Who Can Be Held Liable?

Employers are usually liable for discrimination, harassment or victimisation carried out by their employees in the course of employment, even if the employer did not know about it or approve of it. An employer has a defence if it can show it took all reasonable steps to prevent the conduct from happening, for example through training and clear policies.

Individual employees or agents who personally carry out discriminatory acts can also be named in a claim and held personally liable, alongside their employer.

When Can Discrimination Be Lawful?

The Equality Act 2010 sets out limited circumstances where otherwise discriminatory treatment is permitted, including:

● Occupational requirements, where having a particular protected characteristic is a genuine and proportionate requirement for a specific role
● Positive action, measures to help address disadvantage or under representation of a group, without amounting to positive discrimination
● Statutory authority, where the law itself requires or permits the treatment in question
● National security

These exceptions are narrow and employers relying on them must usually show the treatment was a proportionate way of achieving a legitimate aim.

Bringing a Discrimination Claim

Before issuing a claim, most people must first contact Acas for early conciliation. A discrimination claim must currently be brought within three months of the discriminatory act, or, where there is an ongoing course of discriminatory conduct, within three months of the end of that conduct. Tribunals have discretion to extend this time limit where they consider it "just and equitable" to do so, though extensions are the exception rather than the rule.

Once a claimant has shown facts from which discrimination could be inferred, the burden shifts to the employer to provide a non discriminatory explanation for its actions.

Compensation and Remedies

If a discrimination claim succeeds, a tribunal can:

● Make a declaration about the parties' rights
● Order the employer and/or an individual respondent to pay compensation
● Recommend that the employer take specific steps to reduce the impact of the discrimination

Unlike unfair dismissal compensation, there is no upper limit on discrimination compensation. Awards can cover financial losses, such as lost earnings, and non financial losses such as injury to feelings. Where sexual harassment is found to have occurred and the employer failed in its duty to take reasonable steps to prevent it, compensation can be increased by up to 25%.

Upcoming Changes: The Employment Rights Act 2025

The Employment Rights Act 2025 (ERA 2025) is introducing significant changes to discrimination law, with provisions coming into force on a rolling basis. Key changes include:

● A new express duty on employers to take all reasonable steps to prevent sexual harassment
● The reintroduction of employer liability for harassment of staff by third parties, such as customers or clients
● Making void any contract clause that tries to stop a worker disclosing or alleging discrimination or harassment
● A requirement for large employers (250+ staff) to publish equality action plans covering the gender pay gap and menopause support
● Extending the time limit for bringing tribunal claims from three months to six months
● Widening whistleblowing protection to cover disclosures about sexual harassment

Employers should review their anti harassment policies, training and grievance procedures ahead of these changes taking full effect.

Frequently Asked Questions

What's the difference between direct and indirect discrimination?

Direct discrimination is being treated worse specifically because of a protected characteristic. Indirect discrimination is being disadvantaged by a rule or policy that applies to everyone but has a disproportionate impact on people sharing a protected characteristic.

Can I claim discrimination if I no longer work for the company?

Yes. The Equality Act 2010 protects former employees against discrimination, harassment and victimisation connected to their past employment, including in relation to references.

Is there a cap on discrimination compensation?

No. Unlike unfair dismissal, there is no statutory cap on compensation for discrimination claims.

How long do I have to bring a claim?

Currently three months from the discriminatory act, or the end of an ongoing course of conduct, extending to six months once the relevant provisions of the Employment Rights Act 2025 come into force. You must normally contact Acas for early conciliation before submitting a claim.

Can an individual colleague be sued personally for discrimination?

Yes. Employees and agents who carry out discriminatory, harassing or victimising acts can be named as individual respondents in a tribunal claim, in addition to the employer.

This guide provides general information only and is not legal advice. Anyone considering a specific contract claim or counterclaim, whether an employer or an employee, should contact us here contact@gec-law.co.uk for legal advice.