I Wonder How to Handle Workplace Discrimination Complaints

Discrimination complaints can arise quickly and affect morale, productivity, and reputation. Managers are often the first to hear concerns, and how you respond in the first hours and days can determine outcomes for people and the business.

The Acas Annual Report and Accounts records that, in 2024 – 2025, Acas saw growing numbers of claims about discrimination in the workplace, and overall numbers of notifications increased by 12% compared with 2023 - 2024. This also resulted in an additional 5,000 employment tribunal claims being lodged. While most matters resolve before a hearing, the volumes illustrate the risk of escalation to the employment tribunal if concerns are mishandled.

This article explains what discrimination complaints involve, the legal framework, key employer obligations, and practical steps to handle concerns fairly and lawfully.

What does the law say?

The Equality Act 2010 primarily governs discrimination at work. It protects individuals from unlawful treatment because of protected characteristics. Protected characteristics include age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex, and sexual orientation.

Discrimination can also take several forms:

• Direct discrimination: less favourable treatment because of a protected characteristic.
   
• Indirect discrimination: where a rule or way of doing things applies to everyone but puts people with a protected characteristic at a particular disadvantage, and it is not a proportionate way of achieving a legitimate business aim.
   
• Harassment: unwanted conduct related to a protected characteristic which has the purpose or effect of violating dignity or creating an intimidating, hostile, degrading, humiliating, or offensive environment.
   
• Victimisation: subjecting someone to a detriment because they have done, or may do, a protected act, such as making a complaint of discrimination or supporting another’s complaint.

Employers can be liable for discriminatory acts by employees in the course of employment, even if those acts were not authorised. A potential defence exists if the employer can show it took all reasonable steps to prevent discrimination (e.g. effective policies, training, and prompt action when issues arise). Handling complaints properly is therefore critical to discharging legal duties, maintaining trust, and preventing escalation.

Key Employer Obligations

Employers must take discrimination complaints seriously and address them without delay. The ACAS Code of Practice on Disciplinary and Grievance Procedures sets baseline standards for handling grievances fairly, including promptness, impartiality, and the right of appeal. Following the Code helps resolve issues early and can affect any subsequent compensation uplift if a case reaches an employment tribunal.

Disability requires particular care. Employers have a duty to make reasonable adjustments to remove or reduce substantial disadvantages faced by disabled workers. Adjustments may be needed during the process itself (e.g. allowing a companion, providing more time, or changing meeting formats) as well as in the underlying role or working arrangements.

Investigations must be impartial and proportionate to the issues raised, and all information must be restricted on a need-to-know basis. Where the complaint involves serious allegations or senior individuals, it may be appropriate to appoint an investigator who is independent of the line of management, or to engage an external reviewer.

How should employers respond?

A calm, consistent response supports fair outcomes and reduces risk.

1. Acknowledge the complaint promptly in writing, explain the next steps, and provide a named point of contact for queries.
    
2. Decide the appropriate route, whether informal resolution or a formal grievance, and confirm the process and indicative timeframes under your policies and the ACAS Code.
    
3. Appoint an impartial investigator with no conflicts, set clear terms of reference, and gather evidence methodically.
    
4. Manage confidentiality and data protection by limiting information to those who need it, securing records, and giving clear instructions to all participants.
    
5. Take immediate protective measures where needed, such as temporary changes to reporting lines or working arrangements, without penalising the complainant.

What are the risks of getting this wrong?

Failures in process and culture can create significant legal, financial, and operational exposure.

• Vicarious liability: Employers may be found vicariously liable for discriminatory acts by employees if they do not take reasonable steps to prohibit harassment.
   
• Tribunal risk: awards for injury to feelings and potential uplifts for failure to follow the ACAS Code may be imposed if no reasonable steps are taken.
   
• Employee relations: employee morale may decline, with employees losing trust in the company, leading to further grievances, loss of talent, and reduced productivity.
   
• Reputational harm: a discrimination case may affect customer confidence, tender opportunities, and investor trust.

Summary

Discrimination complaints require a prompt, fair, and well‑documented response. Clear policies, trained managers, and impartial investigations support compliance and better decisions. Focusing on early acknowledgement, a suitable process under the ACAS Code, careful confidentiality, and non‑retaliation helps protect people and the business.

Investing in preventative steps such as regular training, refreshed policies, and practical reasonable adjustments reduces the likelihood of claims and supports a respectful culture. A disciplined approach not only manages legal risk but also sustains productivity, retains talent, and protects reputation.

Further Advice

If you have any queries on this topic or any other employment-related matters, our Peace of Mind Team is here to provide expert guidance. Our Document Audit Team can also help draft relevant workplace policies.

Contact our Employment Team by emailing employment@warnergoodman.co.uk or calling 023 8071 7717.