Racial Discrimination at Workplace

Racial discrimination at workplace is a serious risk that every employer must guard against. As a business leader, you need to understand your obligations and respond promptly to complaints taking a proactive action to foster an inclusive culture.

Understanding Racial Discrimination and Its Legal Basis

Under the Equality Act 2010, race is a protected characteristic, covering not only skin colour but also ethnic origin, nationality and national origin. Treating someone less favourably because of race amounts to unlawful discrimination whether direct or indirect. Employers must also guard against harassment (unwanted conduct related to race) and victimisation (punishing someone for raising discrimination concerns).

Tribunals take claims of racial discrimination very seriously. Unlike some other claims, awards for discrimination are uncapped and successful claimants may receive compensation for injury to feelings, loss of earnings and aggravated damages. So, not only is this a legal issue, but it also carries reputational and financial risk.

It makes sense to have robust policies, swift procedures and clear training in place to prevent discrimination and respond effectively when issues arise.

Recognising Types of Racial Discrimination at Workplace

To guard your organisation, you must be able to spot both obvious and more subtle forms of racial discrimination at workplace. These include:

Direct discrimination: An example would be refusing to promote someone because of their race.
Indirect discrimination: A neutral policy (e.g. dress code or working pattern) that disproportionately disadvantages employees of a certain race and cannot be objectively justified.
Harassment: Racial slurs, jokes or unwanted conduct tied to race that creates a hostile environment.
Victimisation: Treating someone badly for making or supporting a complaint about race discrimination.

Early signs of trouble might include repeated informal complaints, tensions between staff or patterns of disadvantage (for example, certain racial groups being given less visibility or opportunity). Monitoring diversity metrics and conducting regular staff surveys can help you spot issues early.

Steps to Take When a Complaint Arises

When an employee raises a concern of racial discrimination, how you respond at the beginning matters greatly. A mishandled process often escalates to tribunal claims. Here is a structured approach:

1. Acknowledge and reassure

Respond promptly in writing. That shows you take the concern seriously. Explain the process, expected timeline and reassure confidentiality as far as possible.

2. Appoint an impartial investigator

Where possible, choose someone who has not been directly involved in the issue and who will conduct a fair and independent analysis. In smaller organisations you may need to outsource the investigation to maintain impartiality.

3. Conduct a thorough investigation

This should include:

Interviewing complainants, respondents and relevant witnesses.
Reviewing emails, messages, HR records and CCTV (if relevant).
Keeping accurate notes, preserving evidence and ensuring consistency in questions.

4. Maintain transparency and communication

Keep both parties informed about progress and expected timescales (subject to confidentiality constraints). Delays can lead to frustration and claims of unfair treatment.

5. Reach a decision and take action

After reviewing evidence, you must decide whether the complaint is upheld. If so proportionate remedial action should be taken. That might include:

Disciplinary action (up to dismissal, depending on severity).
Training or coaching for individuals or the wider team.
Revising policies, processes or practices that enabled the discrimination.
Offering mediation or reconciliation steps if appropriate.

Even if you find no breach, it is vital to communicate your reasoning clearly and reassure employees the complaint was taken seriously. Continue to monitor the situation for any recurrence.

Appeal and Escalation

Employees should have a right to appeal your decision. The appeal should ideally be heard by someone who was not involved in the original investigation or decision. The process should be thorough and documented. Once the appeal is concluded, the internal process is regarded as exhausted.

If an internal resolution fails, the complainant might proceed to an employment tribunal or ACAS early conciliation. It is essential to maintain proper documentation throughout as tribunals will scrutinise your process and not just the outcome.

External guidance from ACAS on discrimination claims is often referenced in tribunal decisions and provides a useful standard to aim for.

For Free Employment Law Advice for Employers Call John Bloor at EBS Law on 01625 87 4400

Preventing Racial Discrimination at Workplace

The most effective strategy is prevention. A reactive response is better than nothing, but prevention reduces the risk, cost and reputational damage. Here are best practices to embed:

Policy and procedure

Ensure your equality, anti-discrimination and grievance policies explicitly address racial discrimination. Make them accessible and regularly reviewed, ensuring they are included in your staff handbook.

Training and awareness

Deliver training to all levels of staff, especially managers, on unconscious bias, micro-aggressions and cultural competence. Refresh it periodically.

Promoting an inclusive culture

Foster open dialogue, employee networks and encourage reporting without fear. Encourage diverse voices in decision-making and leadership roles.

Reviewing practices for bias

Regularly audit recruitment, promotion, reward and disciplinary decisions to detect patterns of bias or disparity. If trends emerge take immediate corrective action.

Effective grievance mechanisms

Provide clear paths for raising discrimination concerns safely. That includes anonymous channels, protected disclosures and assurance of non-retaliation.

Monitoring and measurement

Track diversity metrics across the workforce, turnover by demographic, pay gaps and grievance outcomes. Use insights to drive changes.

Real-World Examples and Scenarios

Example 1: A senior manager is overheard making a racial stereotype remark about a colleague. An employee complains. The employer immediately launches an investigation, finds the manager in breach of policy and issues formal disciplinary action. The firm also organises training across the team.

Example 2: A policy requiring “availability on UK bank holidays” disproportionately affects staff from certain international communities who observe different cultural holidays. That is a potential indirect discrimination. The employer reviews the policy and introduces flexibility for cultural observances to remove the bias.

Example 3: A BAME employee repeatedly raises concerns about unequal access to high-visibility projects. Despite no clear breach found immediately, the employer monitors allocation trends and intervenes to ensure fair distribution and thereby reduces the future risk.

How EBS Law Can Help Employers

Facing a complaint of racial discrimination can be intimidating. At EBS Law, we support employers at every stage from drafting policies, conducting investigations, defending claims to training leadership. Our experience helps you handle sensitive issues with confidence and legal robustness.

For more insight, you might find these existing pages on our site helpful:

Contact John Bloor today for expert support at EBS Law. We’re here to ensure your business stays protected every step of the way. Call 01625 874400 or email enquiries@ebslaw.co.uk.