Discrimination Advice for Employers: Prevent, Manage and Defend Claims
Expert employment law advice for London employers facing discrimination complaints, tribunal claims and the new October 2026 harassment duties.
Employers in England and Wales are legally responsible for discrimination by their staff under the Equality Act 2010, unless they can show they took all reasonable steps to prevent it. Adam Bernard Solicitors’ employment team advises London businesses on preventing workplace discrimination, handling complaints and defending claims, from policies and training through to Acas Early Conciliation and the Employment Tribunal.
Discrimination claims are among the most costly an employer can face. Compensation is uncapped, there is no minimum length of service, and from 1 October 2026 employees have six months to bring most tribunal claims. Getting advice early is usually the cheapest option.
Call 0207 100 2525 or book a video consultation by Zoom, Teams, WhatsApp or Skype.
What are an employer's legal duties on discrimination?
An employer must not discriminate against job applicants, employees or workers because of a protected characteristic, and is liable for discrimination and harassment carried out by its employees “in the course of employment”. This is known as vicarious liability, under section 109 of the Equality Act 2010.
The only full defence is to show you took all reasonable steps to prevent the conduct, meaning practical action taken before the incident, not a policy sitting in a drawer. In practice this means:
- an up-to-date equal opportunities and anti-harassment policy that staff have actually read
- regular, recorded training for managers and staff
- a clear and trusted way to raise complaints
- prompt, fair investigation and consistent outcomes
The nine protected characteristics
The Equality Act 2010 protects nine characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation (GOV.UK: Discrimination: your rights).
Protection applies from the recruitment stage. It also covers people treated badly because of someone they are associated with (such as a disabled child) or a characteristic they are wrongly thought to have.
Types of discrimination employers must guard against
| Type | What it means | Example for employers |
|---|---|---|
| Direct discrimination | Treating someone less favourably because of a protected characteristic. Intention or motive is irrelevant. | Rejecting a qualified candidate because of their age |
| Indirect discrimination | A rule or practice that applies to everyone but disadvantages a group, and cannot be objectively justified | A rigid full-time-only rule that disadvantages working mothers |
| Harassment | Unwanted conduct related to a protected characteristic that violates dignity or creates a hostile environment | “Banter” about a colleague’s religion |
| Sexual harassment | Unwanted conduct of a sexual nature | Comments on appearance, unwanted touching, explicit messages |
| Victimisation | Treating someone badly because they complained about discrimination or supported a complaint | Excluding an employee from promotion after a grievance |
| Discrimination arising from disability | Unfavourable treatment because of something linked to a disability | Disciplining for sickness absence caused by a disability |
| Failure to make reasonable adjustments | Not removing barriers for a disabled employee | Refusing adapted equipment or adjusted hours |
Indirect discrimination can be defended if the rule is a proportionate means of achieving a legitimate aim. Direct discrimination generally cannot be justified, except for age. For disability, see our guide to disability discrimination at work.
New employer harassment duties from 30 October 2026
From 30 October 2026, the Employment Rights Act 2025 requires employers to take “all reasonable steps” to prevent sexual harassment, a higher standard than the “reasonable steps” duty in force since 26 October 2024. It also makes employers liable for harassment of their staff by third parties, such as customers, clients, patients or contractors.
What changes for employers:
- A stricter preventative duty: “all reasonable steps” means doing everything that was reasonably possible, not just something sensible.
- Third-party harassment: staff can bring tribunal claims if they are harassed by a third party and you failed to take all reasonable steps to stop it. This covers every protected characteristic, not only sex.
- A compensation uplift of up to 25% in sexual harassment claims where the preventative duty is breached.
- Whistleblowing: since April 2026, disclosures about sexual harassment can be protected disclosures. See our advice on whistleblowing for employers.
- NDAs: the government plans to restrict confidentiality clauses that stop workers speaking about harassment or discrimination, so review the wording in your settlement agreements.
The Equality and Human Rights Commission can also take enforcement action. For an overview of the wider reforms, read our guide to the Employment Rights Act UK reforms.
How to avoid indirect discrimination in your workplace
Before introducing a rule, policy or practice, ask whether it puts any group with a protected characteristic at a particular disadvantage, and whether the same goal could be reached in a less restrictive way. Record that assessment: it becomes your evidence if the policy is challenged.
Common risk areas include dress codes, shift patterns, office moves (for example, to premises with poor wheelchair access), long-hours cultures, language requirements and recruitment criteria such as “digital native” or “recent graduate”.
Equal pay: what employers need to know
Men and women doing equal work for the same employer are entitled to equal pay and contractual terms under the equality of terms provisions in the Equality Act 2010. Equal work means like work, work rated as equivalent, or work of equal value.
Equal pay claims relate only to sex. Pay complaints linked to another characteristic, such as race, are brought as discrimination claims instead. An employer can defend a pay difference by showing a genuine material factor unrelated to sex. Employers with 250 or more staff must also publish annual gender pay gap reports.
What should an employer do when an employee complains of discrimination?
Treat every discrimination complaint seriously, investigate it promptly and impartially, and document each step. How you handle the complaint is often scrutinised as closely as the original allegation.
- Acknowledge the complaint in writing and agree any interim measures, avoiding anything that looks like punishment, which could amount to victimisation.
- Run a fair investigation with an investigator who was not involved, following the Acas Code of Practice on disciplinary and grievance procedures. An unreasonable failure to follow the Code can increase an award by up to 25%. Our solicitors can support you through grievance proceedings.
- Decide and communicate the outcome, with a right of appeal.
- Consider early resolution. Before making a tribunal claim, the employee must go through Acas Early Conciliation. This is your best opportunity to settle, often through a settlement agreement. We provide Acas assistance throughout.
- If a claim is issued, you normally have 28 days to file your response (ET3). See our page on defending employment tribunal claims.
From 1 October 2026, the time limit for most tribunal claims, including discrimination, doubled from three months to six months less one day. Ongoing courses of conduct can bring earlier events into scope, so keep records accordingly.
How much can a discrimination claim cost an employer?
Discrimination compensation is uncapped. Awards cover financial loss plus “injury to feelings”, assessed using the Vento bands. For claims presented on or after 6 April 2026, the bands are:
| Vento band | Award range (from 6 April 2026) |
|---|---|
| Lower (less serious cases) | £1,300 – £12,600 |
| Middle | £12,600 – £37,700 |
| Upper (most serious cases) | £37,700 – £62,900 |
On top of this come interest, Acas Code uplifts, the new harassment uplift, legal costs, management time and reputational damage. Investing in prevention is almost always cheaper.
How Adam Bernard Solicitors helps employers
Our employment solicitors act for employers of all sizes across London, from our offices in High Holborn and Upton Park. We provide:
- Equality, anti-harassment and third-party harassment policies updated for the October 2026 changes
- Manager and staff training on inclusive culture and the new “all reasonable steps” duty
- Advice on recruitment, reasonable adjustments and flexible working requests
- Independent investigations into discrimination and harassment complaints
- Negotiating settlement agreements and handling Acas Early Conciliation
- Defending Employment Tribunal discrimination claims
Our solicitors are regulated by the Solicitors Regulation Authority. See our employment law services and employment fees.
Are you an employee who has been discriminated against? See our discrimination at work claims page instead.
Speak to our employment solicitors today on 0207 100 2525, or get in touch online.
Frequently asked questions
Is an employer liable for discrimination by its employees?
What is the employer's duty to prevent sexual harassment?
How long does an employee have to bring a discrimination claim?
Is there a cap on discrimination compensation?
Can an employer justify indirect discrimination?
Should we settle a discrimination claim?
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