We all have the right to be treated fairly and equally. That applies regardless of who we are, what we look like and in whatever circumstances we find ourselves in.
This right is enshrined in the UK under the Equality Act 2010, which aims to protect people from discrimination and promote equal opportunities. As a small business owner, you should treat your employees and customers fairly and equally and in line with the provisions of the Equality Act at all times.
Here, we break down the protected characteristics of the Act, who they apply to, and provide some do’s and don’ts for small business owners and staff to ensure you’re always acting fairly and in line with the law.
What is the Equality Act 2010?
The Equality Act 2010 is UK Government legislation which looks to protect people from discrimination, both at work and in wider society. It sets out the different ways that it’s unlawful to treat someone, based on a set of protected characteristics like race, sex and disability, among others.
As a matter of good practice for all businesses, you should treat everyone fairly regardless of their age, race, sexual orientation, gender, disability, religion or belief. You should avoid assumptions of individuals based on these characteristics, and look to protect your staff and customers from discrimination at all times. For small business owners, there are specific areas of guidance within the Equality Act to help inform providers of goods, services or facilities, as well as employers.
The Act also protects self-employed people, with or without employees, from discrimination by their clients or customers. It covers sole traders, limited companies, or any other business type, and applies whether you charged for the service or provided it for free.
What are the protected characteristics in the Equality Act 2010?
The Equality Act aims to promote equality and opportunity in the UK by prohibiting various forms of discrimination in the workplace and in wider society.
There are nine protected characteristics covered by the Act:
- Age
- Marriage status
- Disability
- Gender reassignment
- Pregnancy or maternity leave
- Race, nationality or ethnicity
- Religion or belief
- Sex
- Sexual orientation
The above characteristics are protected by the Act against any ‘unlawful discrimination’. Unlawful discrimination occurs when someone is treated unfairly, or is the victim of harassment or unwanted behaviour on the basis of one or more of these characteristics.
What are reasonable adjustments?
The aim of the Equality Act is to create equality, so that everyone has access to the same opportunities and services. In some cases, the Equality Act 2010 may require 'reasonable adjustments' to be made that will allow everyone to access the same opportunities and services as each other.
For businesses, there is a legal duty to provide reasonable adjustments to:
- employees and workers
- contractors and self-employed people hired to personally do the work
- job applicants
This could include:
- Adjustments being made to premises to make them more accessible for disabled people, like installing ramps or providing disabled bathrooms
- An employer allocating some of a disabled person’s duties to another person
- Altering working hours allowing for absences
- Giving extra training, supervision or additional instructions or guidance
- Modifying equipment or providing different equipment for certain people
- Providing a reader or interpreter
- Ensuring your website is accessible to people who may be blind, deaf, partially sighted or colour blind
What is reasonable in one instance may not be reasonable in others, and some businesses may be able to provide more adjustments than others. For example, if an employee asks for extensive renovations to be made to a premises which will cost more than the small business can afford, this may be an unreasonable request. However, as a responsible small business owner, you should be willing and able to make more reasonable adjustments, such as allowing that employee to work remotely or from a different, more accessible location.
Exceptions
It’s important to remember that ‘equality’ doesn’t mean treating everyone exactly the same. It means achieving equal outputs, which may be achieved by treating people differently.
The Equality Act allows for some exemptions, where people’s protected characteristics are taken into account and may mean they are treated differently or, in some cases, even excluded or given preferential treatment as a result.
For example:
- A pregnant woman may be refused certain spa treatments which would be offered to other customers, if the treatment is deemed unsuitable or unsafe for her or her baby.
- A hotel, shop, café or restaurant with a ‘no pets allowed’ policy will make exceptions for service animals like guide dogs.
- A director may look to recruit an actor of a specific race for a particular role, excluding other actors who don’t meet that racial profile.
However, while pubs and restaurants have the right to refuse service to a customer or client, they must have a legitimate reason that does not infringe upon a protected characteristic. For example, a bartender may refuse service on grounds of intoxication, or previous violent behaviour on the premises. They cannot refuse service to all people from one cultural background, however, just because one person from that culture was previously barred.
Direct and indirect discrimination
Discrimination can come in a couple of different forms, and it’s important to understand each type in order to avoid it within your business.
Different types of discrimination include:
Direct discrimination
Direct discrimination means treating someone with a protected characteristic less favourably than others. For example, refusing to provide service to someone because they have a disability.
Indirect discrimination
Indirect discrimination means putting rules or arrangements in place that may apply to everyone, but that put someone with a protected characteristic at an unfair disadvantage. For example, mandating that all staff must work on a day that might fall on a religious holiday for some faiths.
Harassment
Harassment is unwanted behaviour linked to a protected characteristic that creates an offensive environment for them. For example, making insulting jokes about a particular race or gender.
Victimisation
Victimisation means treating someone unfairly because they’ve complained about any of the forms of discrimination or harassment mentioned above. For example, an employee being ostracised or left out at work after making a complaint about discrimination.
How the Equality Act might affect your business
The Equality Act impacts every business, large and small. Here, we’ve gathered together some theoretical examples of how the Act could come into play in some of the most common types of business in the UK.
Hospitality
The owner of a pub has had to break up a fight involving a group of customers who happen to be Asian. The owner then tells the bouncer on the door of the pub to refuse entry to all Asian customers for the rest of the weekend.
The pub is likely to be discriminating against people on the basis of their race, by singling out and punishing an entire race for the actions of a couple of individuals from that race.
Retail
A butcher is Muslim and only sells halal meat in accordance with their religion. A non-Muslim customer comes in and attempts to buy some meat, but is refused since the butcher believes that only muslims should be purchasing halal meat.
This could be an example of religious discrimination, since the butcher should not be refusing to sell their products to someone because of their religion. The butcher can choose to only sell halal meat, but can’t specify who to sell it to.
Trades
A carpenter is hired to make adjustments to a person’s home to make it more accessible for the blind. The carpenter then hands over a paper quote for the work, which the customer can’t read, and refuses to supply the quote in any other format.
The tradesperson could be found to be discriminating against the customer on the grounds of their disability. Instead, they could send the quote in other formats like telephone or email, which can then be read to the customer via a screen reader.
Hairdressers and salons
A beauty salon offers back rubs and massages, but refuses to offer these services to a wheelchair user who can’t lie face down on the massage table.
The salon could be found to be discriminating against the wheelchair user on the basis of their disability. Instead, the salon could make a reasonable adjustment and offer different types of massage that can be done while the customer is seated.
Small businesses with employees
A small business with two employees, one male and one female, both request flexible working hours because of childcare responsibilities. The business grants the female employee’s request, but refuses the male’s request.
This could be found to be discrimination on the basis of sex, since the only difference between granting one employee’s request and the other was that one was a woman and one was a man.
Equality Act do’s and don’ts
To keep you and your business in line with the Equality Act, we’ve gathered together some handy do’s and don’t to follow:
DO
- If introducing a ban or policy, think about all of your potential customers and how your policy might impact them. Consider and document your reasons for any specific policy or ban
- Apply all policies or practices uniformly and consistently
- If refusing service to an individual, make your reasons for refusal clear (for example, based on previous conduct)
- Train staff on the Equality Act provisions, especially individuals who will come into contact with members of the public
- Report any incidents immediately, keep documents and records up to date and consider the use of CCTV in areas like restaurants or shops
- Remain calm in all interactions with customers, even when being provoked. Take your time and consider your response before replying
DON'T
- Don’t be disproportionate in how a policy is applied and don’t use exclusionary terms that refer to a protected characteristic, such as race or disability
- Don’t focus your policies or practices on certain groups or individuals (unless there’s an established exception, as outlined above)
- Don’t extend refusal of service to a whole group based on the actions of one individual.
- Don’t let personal opinions or any biases of yourself or your staff determine or influence decision making
- Don’t include personal opinions when reporting incidents. Keep the details brief and stick to the facts
- Don’t respond to provocative questioning and avoid humour, sarcasm and anger. Don’t respond immediately or rush to a knee-jerk reaction
The Equality Act and insurance
Should the worst happen and you or a member of your staff find yourself accused of discrimination, it could lead to legal ramifications for your business. So it’s important to have the right level of business insurance in place to protect you.
Legal Expenses cover is an additional cover which can come in handy if you face a legal challenge or need legal advice or help. For example, if your business is accused of discriminatory practices and you’re being taken to court, Legal Expenses cover could cover the costs of hiring a solicitor to defend you if your case is accepted and you have been found to follow the required rules.
Other business insurance covers, like Public Liability insurance, could also come into play in some circumstances depending on the claim. Public Liability protects your business from claims made against you from a member of the public if they’ve been harmed in the course of dealing with your business. This is usually through things like slipping on an unmarked wet floor, but in some cases stress, defamation or distress caused by discrimination could fall into this category.
However, most insurers offering Public Liability cover, like AXA, exclude discrimination on the list of acceptable claims, so it’s always best to check your policy wording carefully.
In any case, the best way to ensure you don’t need to make a claim is to follow the guidance set out in this guide and always treat your staff and customers fairly, the way they deserve to be treated.
All links are checked and valid at time of publishing, 20 January 2024.
