Discrimination claims are costly, public and damaging, and compensation for discrimination is uncapped. The good news is that compliance is largely about good, consistent practice. The cornerstone is the Equality Act 2010. Here is a plain-English guide for employers in England and Wales.
Know the protected characteristics
The Equality Act 2010 protects nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Discrimination law applies across the whole employment relationship, recruitment, pay, promotion, training, dismissal and beyond.
Understand the types of discrimination
- Direct discrimination, treating someone less favourably because of a protected characteristic.
- Indirect discrimination, a policy that applies to everyone but disadvantages a protected group, unless it can be objectively justified.
- Harassment, unwanted conduct related to a protected characteristic that violates dignity or creates a hostile environment. Note: harassment claims under the Equality Act 2010 are not available for all protected characteristics; they do not apply to marriage and civil partnership or pregnancy and maternity.
- Victimisation, treating someone badly because they complained about, or supported a complaint of, discrimination.
- Failure to make reasonable adjustments, for disabled workers.
The new duty to prevent sexual harassment
Employers now have a proactive duty to take reasonable steps to prevent sexual harassment of their workers (section 40A, Equality Act 2010, introduced by the Worker Protection Act 2023 and in force from October 2024). This is a positive obligation (you must act before harassment occurs, not just respond to complaints). Failure can increase compensation and trigger EHRC enforcement.
Practical steps to comply
- Have clear policies, an equal opportunities/anti-harassment policy and a dignity-at-work policy, kept up to date and actually applied.
- Train staff and managers regularly on discrimination, harassment and unconscious bias, and keep records of the training.
- Fair recruitment, objective, job-related criteria; avoid age/sex/race assumptions in adverts; make adjustments for disabled candidates; be careful with health and criminal-record questions.
- Reasonable adjustments, proactively support disabled workers (equipment, flexible hours, changes to premises or duties).
- Handle complaints properly, take grievances seriously, investigate promptly and fairly, and protect complainants from victimisation.
- Risk-assess and prevent harassment, for the s 40A duty: assess risks (including from third parties such as customers), put preventive measures in place, communicate them, and monitor.
- Monitor and review, collect diversity data, review pay and promotion outcomes, and act on patterns.
- Follow the EHRC Code, the Equality and Human Rights Commission (EHRC) Code of Practice on Employment and its harassment guidance set out what good practice looks like and are taken into account by tribunals.
Why it matters
Beyond fairness, the stakes are high: discrimination claims need no qualifying period, can be brought by job applicants as well as staff, and carry uncapped compensation (including for injury to feelings). A genuine "reasonable steps" defence (backed by policies, training and prompt action) is your best protection.
Key takeaways
- The Equality Act 2010 protects nine characteristics, but available claims differ by characteristic: harassment does not apply to marriage and civil partnership or pregnancy and maternity; indirect discrimination does not apply to marriage and civil partnership.
- Employers must now take reasonable steps to prevent sexual harassment (s 40A, introduced by the Worker Protection Act 2023, in force October 2024), a proactive duty.
- Comply through policies, training, fair recruitment, reasonable adjustments, proper complaint-handling, risk assessment and monitoring, guided by the EHRC Code.
- Discrimination compensation is uncapped and applies from day one (and to applicants), prevention is essential.
Sources
- Equality Act 2010 (protected characteristics; forms of discrimination; harassment; reasonable adjustments; s 40A duty to prevent sexual harassment)
- Worker Protection (Amendment of Equality Act 2010) Act 2023 (s 40A duty to take reasonable steps to prevent sexual harassment, in force October 2024)
- EHRC Code of Practice on Employment and guidance on preventing sexual harassment
--- This article is general information about the law of England & Wales as at 2026, not legal advice. For advice on your circumstances, consult a qualified solicitor.