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Commercial disputes

Understanding the risks of disability claims under the Equality Act 2010 and protecting your business

4 Nov 2024

The Equality Act 2010 in the UK provides robust protection against discrimination for people with disabilities. It imposes legal obligations on businesses to ensure they do not discriminate against employees, customers, or other stakeholders based on disability. Businesses can face risks in this area, particularly from disability-related claims, which can result in costly litigation, reputational damage, and operational disruptions. To mitigate these risks, it is crucial for businesses to understand their obligations under the law and implement proactive strategies for compliance.

Legal risks of disability discrimination claims

Disability discrimination claims can arise when a business fails to meet its legal obligations under the Equality Act. These obligations include:

Direct discrimination: This occurs when a person is treated less favourably because of their disability compared to someone without a disability in similar circumstances.

Indirect discrimination: Indirect discrimination happens when a business applies a policy or practice that puts people with disabilities at a disadvantage. Even if the policy applies to everyone equally, it can still be discriminatory if it disproportionately affects people with certain disabilities.

Failure to make reasonable adjustments: One of the most common claims businesses face is failure to make reasonable adjustments for people with disabilities. The Equality Act requires businesses to take steps to remove barriers that disadvantage disabled people. This could include modifying equipment, providing accessible facilities, or adjusting working arrangements.

 Harassment and victimisation: Businesses must also ensure that disabled employees or customers are not subjected to harassment or victimisation because of their disability. This can include offensive remarks, bullying, or less favourable treatment after a person complains about discrimination.

Consequences of disability claims

If a business is found to have discriminated against a person with a disability, the consequences can be costly. Legal outcomes may include:

  • Compensation: There is no financial limit on compensation for disability discrimination claims. Businesses can be ordered to pay damages for loss of earnings, emotional distress, and injury to feelings.
  • Legal costs: Defending a discrimination claim can be costly, with expenses for legal representation and possible settlement agreements.
  • Reputational damage: A discrimination claim can cause lasting harm to a company’s reputation, particularly if it is made public. This can lead to a loss of customers, difficulties in recruiting staff, and damage to relationships with stakeholders.
  • Operational disruption: The process of handling a legal claim, from internal investigations to court appearances, can disrupt normal business operations, further affecting productivity and morale.

How businesses can protect themselves

Steps businesses can take to minimize the risks of disability claims under the Equality Act include:

  1. Training and awareness: Regular training on disability discrimination laws and the importance of inclusivity should be provided to all employees, particularly managers and HR personnel.
  2. Policies: Ensure that your business has comprehensive anti-discrimination policies in place. Regularly review and update these policies to reflect changes in legislation and best practices.
  3. Accessibility audits: Businesses should regularly assess their premises, services, and employment practices to ensure they are accessible to people with disabilities.
  4. Reasonable adjustments: Proactively identify and implement reasonable adjustments that could be made for employees and customers with disabilities.
  5. Documentation: It is important to have thorough documentation demonstrating that your business took reasonable steps to comply with the Equality Act.
  6. Support: Establish clear reporting mechanisms for employees and customers to raise concerns or complaints about disability discrimination.
  7. Monitoring and reporting: Regularly monitor the workplace and customer feedback to identify any potential areas of concern related to disability discrimination.

The risks businesses face from disability claims under the Equality Act are potentially substantial. If you are concerned your business does not comply with the Equality Act, or it requires assistance to understand where to start with compliance, you should seek legal advice. By fostering a culture of inclusivity, ensuring compliance with the law, and proactively addressing accessibility concerns, businesses can protect themselves from legal claims and build a stronger, more resilient brand.

 

Hannah Proctor

Managing Associate
Commercial disputes

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