Indirect Discrimination Guide for Employers

Indirect discrimination is unlawful under the Equality Act 2010. This means employers by law must ensure they are not treating certain individuals or groups of employees unfairly, even if this treatment is unintentional. Employees may be able to take legal action against their employer if they are unlawfully subjected to indirect discrimination in the workplace.

While preventing unlawful discrimination is a legal obligation for employers, it is also proven to be advantageous for organisations to nurture diverse workforces and foster inclusive cultures. Those with protected characteristics who are able to flourish at work can contribute a broader set of skills and perspective, which in turn boosts productivity and morale, and enhances your employer brand.

In this guide, we explain what indirect discrimination is, the obligations on employers to prevent unlawful indirect discrimination at work and ways to prevent complaints through lawful and compliant practices. We also look at the rules on when indirect discrimination may be justifiable for employers.

 

Section A: What is Indirect Discrimination?

 

Indirect discrimination refers to situations where an employer has operated a provision, criterion or practice (PCP) that applies to all employees but disadvantages some more than others. Crucially, the disadvantage must be as a result of membership to a specific protected characteristic.

 

1. Provision, Criterion or Practice (PCP)

The policy in question must be general – in that it applies to everyone – and may include any rule, general practice, system or procedure. Policies which apply to everyone within a certain group (that the employee happens to be in) can also be the cause of indirect discrimination. For example, the rule may relate to “all sales personnel” or “all employees working on the fourth floor”.

 

2. Protected Characteristic

 

There are nine protected characteristics protected from unlawful discrimination under the Equality Act 2010. The employer’s actions may be considered unlawful indirect discrimination if they negatively affect one employee more than others due to age, disability, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion or belief, sex, or sexual orientation. This means that being a woman, having a disability or transitioning gender, for instance, should not put someone at an unfair disadvantage at work, in comparison to people of different identity groups.

If the employer’s policy or rule negatively and unjustifiably impacts someone as a result of one of these characteristics, the individual may be able to bring a tribunal claim on the grounds of indirect discrimination.

 

Section B: Difference Between Direct and Indirect Discrimination

 

Unlike direct discrimination, indirect discrimination is often inadvertent and can be difficult to identify. This is because direct discrimination refers to a situation where someone is subject to poorer treatment than another person in a similar position, because:

 

a. They have a protected characteristic, or
b. They are perceived as having a protected characteristic (discrimination by perception), or
c. They are associated with another person who has a protected characteristic (discrimination by association).

 

To prove direct discrimination, the employee must show they have been singled-out for poorer treatment, due to one of these three qualifying factors. In contrast, indirect discrimination occurs when a group of people with the same protected characteristic are disadvantaged by an organisation’s policy.

So while direct discrimination in the workplace refers to a situation in which someone with a protected characteristic is treated differently, indirect discrimination is when someone with a protected characteristic is treated the same as everybody else because of a workplace rule or policy, and are unfairly disadvantaged as a result.

 

 

Section C: Examples of Indirect Discrimination

 

Examples of unfair treatment as a result of indirect discrimination in the workplace could include:

 

a. Dismissal, if the protected characteristic leaves the employee unable to abide by company policy

b. Less-favourable employment terms and conditions

c. Fewer earning opportunities

d. Fewer employee benefits

e. Poorer promotion and transfer opportunities

f. Limited access to training

g. Exclusion from voluntary redundancy

 

To illustrate, below are three examples showing how indirect discrimination in the workplace may affect people with different protected characteristics.

 

1. Indirect religious discrimination

 

A restaurant introduces a new shift policy which states that all front-of-house staff must work at least one Saturday every month. A Jewish waitress tells the manager that she cannot work on a Saturday, as it is against her religious beliefs. She is threatened with dismissal if she does not comply with the rule. This is indirect discrimination, as the rule applies to all staff, yet negatively affects all those who identify as Jewish.

 

2. Indirect sex discrimination

 

A telesales company offers a free, online management skills course to all its employees. While any employee may sign up, the course is only available for employees to access during off-peak times, after 3 pm. A female staff member who works flexible hours while her children are in school asks if she can access the course earlier, as, at 3 pm, she leaves the office to pick them up. Her request is denied, consequently leaving her with poorer training and promotion opportunities than her co-workers. This is indirect discrimination since the rule applies to all staff yet is more likely to disadvantage female employees, as they are statistically more likely to be primary caregivers.

 

3. Indirect racial discrimination

 

A business offers its existing employees the opportunity to apply for an internal job opening. The advertisement states that only employees with management degrees obtained from UK universities may apply. This would exclude people who gained their degree in another country from applying for the role and could qualify as indirect racial discrimination. This example differs slightly from the previous two, in that the employer may have justifiable reasons for adopting the policy. For example, it may be difficult or impractical for the employer to attempt to verify the quality and relevance of non-UK qualifications.

 

 

Section D: Dealing with Complaints of Unlawful Indirection Discrimination

 

Employees should be made to feel comfortable raising concerns, without fear of any resulting reprisals or any unfair treatment. There should be a clear process for employees to make a complaint, usually detailed within the equal opportunities policy. The process should typically involve the employee raising the concern with their employer as a grievance, who must then consider the issue fairly and lawfully. This may involve consideration of making reasonable adjustments to avoid unlawful indirect discrimination.

If the employee does not consider the matter resolved, they may be able to make a claim to the tribunal for unlawful discrimination.

 

Section E: Indirect Discrimination Claims

 

To make a claim for indirect discrimination, employees have to prove that they satisfy the required grounds. They have to show: that the employer’s policy or actions are neutral, in that it applies to all employees and does not target people with specific protected characteristics; it must put the employee at a particular disadvantage, as compared to employees who do not share their protected characteristic; and it must negatively affect all people who share that particular protected characteristic in the same way.

This final point is important. An indirect discrimination claim will not have merit if the employee cannot prove that most other members of that protected characteristic group (e.g. most Christians, or most people who have MS) would be negatively affected by the employer’s policy in the same way. This proof can come in the form of:

 

a. General knowledge, e.g. the inability to work on a generally acknowledged religious holiday

b. Statistics, e.g. data showing that most primary caregivers are women

c. Expert opinion, e.g. expert testimony or peer-reviewed research, demonstrating the additional needs of people with a specific disability

 

It can be a discriminatory situation which has already happened, or it can be a potential situation which could happen in the future due to a discriminatory policy.

In addition, an employee can only bring a claim for indirect discrimination if the rule or policy in question affects them personally.

 

Section F: Defending a Discriminatory Policy

 

An employer’s discriminatory actions may be considered lawful if they can provide objective justification for their policy. To establish objective justification, the employer must show that their discriminatory action was both reasonable and necessary, in other words, that it is “a proportionate means of achieving a legitimate aim”. This means that a seemingly discriminatory policy may be justified if it is necessary to maintain the effective, normal functioning of the business, and there are no other reasonable alternatives to that policy.

For example, objective justification may apply if a health care centre for Muslim women discriminated against male applicants by specifying in a job advertisement that only women may apply. Due to the patients’ religion, hiring men would be both inappropriate and ineffective. In this instance, the policy is objectively justified as being an occupational requirement, as the job role can only be fulfilled by female employees.

 

 

Section G: How to Prevent Indirect Discrimination

 

Employers should take a proactive approach to reviewing and updating their organisation’s policies, procedures, and rules to reduce the risk of unlawful discrimination. It is advisable to have a specific equal opportunities policy that outlines the standards and expectations within your organisation to promote and encourage equality and diversity and state that unlawful discrimination is not acceptable.

However, in practice, indirect discrimination can be difficult to identify. Taking a collaborative approach with your workforce is the most effective way to be able to understand and take action to address potential areas of indirect discrimination risk within your organisation’s rules and processes. By fostering an open and transparent culture, inviting feedback and dialogue, and taking employee input seriously, you can help to mitigate discrimination risks. This could include use of regular employee surveys and encouraging managers to invite informal feedback from their teams. You should also ensure that, when introducing any new policy or procedure, it is clearly explained to your workforce – including the reasons for the change. Again, invite feedback on any potential discrimination issues. If alternatives or suggestions are put forward, these should be seriously considered.

Also ensure that all activity relating to anti-discrimination are documented for your records; in the event of a discrimination complaint, you will then be able to evidence the steps you have taken to be proactive.

 

Section H: Need Assistance?

 

Our business employment specialists support employers with all aspects of workplace discrimination, including advice and guidance relating to indirect discrimination. We work with employers both dealing with discrimination complaints and to support with avoiding discrimination through effective policies and practices. Through our fixed fee service, Triple A, employers gain unlimited access to employment law expertise for a low monthly fee. For more information about Triple A or on a specific indirect discrimination matter, contact us.

 

Section I: Indirect Discrimination FAQs

 

What is indirect discrimination?

Indirect discrimination occurs when a policy, practice, or rule that applies to everyone in the same way disadvantages a particular group of people who share a protected characteristic. This type of discrimination is not as overt as direct discrimination but can still have significant adverse effects on those affected.

 

What are direct and indirect discrimination?

Direct discrimination occurs when a person experiences unfavourable treatment at work due to having, or being perceived to have, or being associated with someone who has, a protected characteristic. In contrast, indirect discrimination occurs when policies and procedures that apply to everyone exclude a particular group.

 

How is indirect discrimination different from direct discrimination?

Indirect discrimination differs from direct discrimination in that it is not about treating someone less favourably because of a protected characteristic. Instead, it involves a seemingly neutral rule or policy that disproportionately impacts a group of people with a protected characteristic, making it harder for them to meet the criteria or participate fully.

 

What’s an example of indirect discrimination?

An example of indirect discrimination could be a company implementing a requirement that all employees must work late evenings. This policy might disadvantage employees who have caring responsibilities, which are more likely to affect women, thereby indirectly discriminating against female employees. Another example could be a restaurant introducing a new shift policy which states that all front-of-house staff must work at least one Saturday every month. A Jewish waitress tells the manager that she cannot work on a Saturday, as it is against her religious beliefs. She is threatened with dismissal if she does not comply with the rule. This is indirect discrimination, as the rule applies to all staff, yet negatively affects all those who identify as Jewish.

 

What are the protected characteristics under UK law?

Under UK law, the protected characteristics are age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation. Policies or practices that negatively impact any of these groups could be considered indirect discrimination.

 

How can employers avoid indirect discrimination?

Employers can avoid indirect discrimination by carefully reviewing their policies and practices to ensure they do not disproportionately affect any group with a protected characteristic. Conducting equality impact assessments and consulting with employees or representative groups can help identify potential issues and find more inclusive solutions.

 

What should an employee do if they believe they are experiencing indirect discrimination?

If an employee believes they are experiencing indirect discrimination, they should first raise the issue with their employer, either informally or through the company’s grievance procedure. If the matter is not resolved internally, the employee can seek advice from organisations like Acas or consider making a claim to an employment tribunal.

 

What is the legal test for indirect discrimination in the UK?

The legal test for indirect discrimination involves demonstrating that a particular provision, criterion, or practice puts or would put a person with a protected characteristic at a particular disadvantage compared to others. The employer must then show that the policy is a proportionate means of achieving a legitimate aim.

 

Can indirect discrimination ever be justified?

Yes, indirect discrimination can be justified if the employer can prove that the policy or practice is a proportionate means of achieving a legitimate aim. This means that the aim must be genuine and necessary, and the means of achieving it must be appropriate and necessary, without a less discriminatory alternative available.

 

What remedies are available for indirect discrimination?

Remedies for indirect discrimination can include changes to the discriminatory policy or practice, compensation for any financial loss or emotional distress suffered, and declarations or recommendations from an employment tribunal aimed at preventing future discrimination.

 

How do employees prove indirect discrimination?

To prove indirect discrimination, employees need to provide evidence that a particular policy or practice has or would have a disproportionately negative impact on them due to a protected characteristic. This could involve statistical data, witness statements, or examples of how the policy has affected them and others in a similar position.