A discrimination complaint from an employee is a serious matter that needs a careful, prompt and fair response. How you handle it can determine whether the issue is resolved internally or escalates into a costly Employment Tribunal claim, where discrimination compensation is uncapped. Here is a plain-English guide for employers in England and Wales.
1. Take it seriously, and act promptly
Never ignore, downplay or dismiss a discrimination complaint. Acknowledge it quickly, reassure the employee it will be looked into properly, and start the process without delay. Delay or a defensive reaction can worsen both the situation and your legal exposure.
2. Follow a fair procedure (the Acas Code)
Handle the complaint under your grievance procedure, consistent with the Acas Code of Practice on Disciplinary and Grievance Procedures:
- let the employee set out the complaint (ideally in writing);
- hold a grievance meeting (allowing them to be accompanied);
- investigate impartially; and
- give a written outcome and the right to appeal.
Tribunals take account of whether you followed the Acas Code, and can adjust compensation for unreasonable failure to do so.
3. Investigate thoroughly and impartially
- Appoint someone suitably independent to investigate.
- Interview the complainant, the alleged perpetrator and any witnesses.
- Gather evidence (emails, records, policies).
- Keep the process confidential so far as possible, and document everything.
4. Do NOT victimise the complainant
This is critical: treating an employee detrimentally because they raised (or supported) a discrimination complaint is victimisation, itself unlawful under the Equality Act 2010. Protect the complainant from any backlash, and make sure managers understand this.
5. Take appropriate action
- If the complaint is upheld, take proportionate action, which may include disciplinary measures against the perpetrator, training, and steps to prevent recurrence.
- If not upheld, explain why, and still consider whether improvements (training, mediation) would help.
- Consider mediation to repair working relationships where appropriate.
6. Remember your wider duties
- You have a duty to take reasonable steps to prevent sexual harassment of workers, a complaint is a prompt to review your preventive measures.
- Ensure your equal-opportunities and anti-harassment policies are up to date and applied.
7. Take advice and manage risk
Discrimination law is technical and the financial stakes are high (uncapped compensation, plus injury to feelings). For anything serious, take legal advice early, and be alert to the three-month-less-one-day tribunal time limit, which runs from the act complained of (or the last act in a continuing course of conduct), subject to the Acas early conciliation stop-the-clock rules and the tribunal's just-and-equitable discretion to extend time. Critically, an ongoing internal grievance or appeal does not stop time running for a discrimination claim at the Employment Tribunal; limitation must be monitored separately and Acas early conciliation considered in good time.
Key takeaways
- Act promptly and take the complaint seriously, never ignore or retaliate.
- Follow a fair grievance procedure under the Acas Code (meeting, investigation, written outcome, appeal) and document it.
- Never victimise the complainant, that is separately unlawful.
- Take proportionate action, review your harassment-prevention duty and policies, and take legal advice given the uncapped exposure.
Sources
- Equality Act 2010 (discrimination, harassment, victimisation; uncapped compensation; the s 40A duty to prevent sexual harassment)
- Acas Code of Practice on Disciplinary and Grievance Procedures (and compensation adjustments for non-compliance)
- Employment Tribunal procedure and time limits; Acas early conciliation
--- 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.