How can we reduce the risk of employees bringing discrimination claims against us?

Discrimination is a key area of risk for every employer in the retail sector, attracting potentially unlimited damages. Less favourable treatment on the grounds of sex, race, disability, religion, belief, sexual orientation or age is unlawful and legislation stipulates that retailers will be liable for the acts of their employees. There are no small employer exemptions and generally there is now a greater tendency for workers to bring claims.

Preventing claims from arising in the first place is vital and the best way to do that is to raise awareness of potential discrimination issues in the workplace. Michael Ball, partner in the employment team at Halliwells, says: “Discrimination can happen in numerous ways. Sometimes a claim will arise in situations where lack of awareness means managers and employees alike do not realise there is a potential liability.”

He adds that an equal opportunities policy is an important first step in raising awareness. However, just having the policy is not enough. You must ensure that it is effectively communicated to all employees. They need to be trained and updated and you need to keep records if you are serious about reducing risk. Ball adds: “Zero tolerance should be widely publicised, managers given awareness training, and all staff reminded of your commitment to equality in the workplace. The policy needs enforcing with consistent disciplinary action for breaches.”

If retailers do find themselves faced with a claim, if they have taken all reasonable steps to prevent employees from acting in a discriminatory way, they will have significantly increased their chances of not being found legally liable.