Pride, not prejudice – The Equality Act

Introduction

June is Pride Month – a good time to reflect on inclusivity and non-discrimination in the workplace. For SMEs, this can feel like a complex and sensitive subject. My aim is to help SMEs understand what they can and can’t do – but here’s the quick takeaway: be sensitive and proceed with caution.

While Pride Month may be the catalyst, inclusion isn’t just about LGBTQ+ issues. UK law protects nine characteristics under the Equality Act 2010. Employers – regardless of size – need to be aware of them to avoid legal and reputational risks.

The nine protected characteristics (PCs)

1. Age
2. Disability
3. Gender reassignment
4. Marriage and civil partnership
5. Pregnancy and maternity
6. Race
7. Religion or belief
8. Sex
9. Sexual orientation

Let’s look at what this means in practice.

Understanding discrimination – what’s prohibited?

The Equality Act makes it unlawful to:

• Discriminate directly or indirectly
• Harass or victimise someone
• Instruct or assist someone to discriminate

These rules apply widely – not just in hiring and HR, but also in advertising, customer contracts, and workplace culture.

Types of discrimination explained

• Direct discrimination is treating someone less favourably because of a protected characteristic. Example: “I won’t hire you because you’re too old.” It doesn’t have to be deliberate – subconscious bias counts too. Also, discrimination can be by association (e.g. refusing to hire someone because they care for a disabled person). Only age and certain occupational requirements allow for any legal exceptions – and even then, only if they’re objectively justified.

• Indirect discrimination happens when a company policy or rule applies to everyone but puts a particular group at a disadvantage. For example, requiring all staff to work full-time. This might disadvantage women who are more likely to have childcare responsibilities. The company would need to justify this as a business necessity.

• Harassment is unwanted conduct related to a protected characteristic that violates someone’s dignity or creates an intimidating or offensive environment. It doesn’t need to be intentional. The individual’s perception is important – but so is whether it’s reasonable for them to feel that way. Harassment can also be sexual in nature.

• Victimisation covers treating someone unfairly because they made or supported a complaint about discrimination or harassment (e.g. whistleblowing).

Are there any exceptions?

Yes – but they’re narrow. Common exceptions include:

• Occupational Requirement: If the nature of the job demands it, and it’s a proportionate and legitimate aim.
• Religious Organisations: Some exemptions apply, but again, only with strong justification.

Can we take positive action?

Yes – positive action is legal if:

• A group is disadvantaged or under-represented, and
• The steps taken are proportionate and fair.

This can include outreach, training, and tiebreaker recruitment (choosing a candidate with a protected characteristic if they’re equally qualified).

But “positive discrimination” (hiring someone just because of a characteristic) is generally unlawful – except for disability.

Do we have to promote Pride (or any cause)?

No, not automatically.

• If you reject a request to support Pride because of what it represents or who supports it – that could be direct discrimination.
• But if you have a blanket policy of not promoting causes unrelated to your business – and apply it consistently – you’re on stronger legal ground.

This can also help you avoid indirect discrimination, provided you have a legitimate business reason (e.g. avoiding requests to support conflicting or politically sensitive causes).

Changes on the horizon

Proposed reforms in the Employment Rights Bill include:

• Requiring employers to take reasonable steps to prevent sexual harassment
• Re-introducing employer liability for harassment by third parties (e.g. customers)
• Making sexual harassment reports protected disclosures
• Requiring larger employers (250+ staff) to publish:
  • Equality action plans on gender pay gaps and menopause
  • Gender pay gap data for outsourced workers

These aren’t law yet, but SMEs should stay informed.

Key takeaways for SMEs

• Know the nine protected characteristics
• Review your policies – are they fair and inclusive?
• Train staff (especially managers) on how to spot and prevent discrimination
• Be consistent when handling requests for support or accommodation
• Document your decisions – especially when you’re saying no

Finally, inclusion isn’t just about a legal duty – it’s also good for morale, reputation, and business.