Sex Discrimination Act & Christmas Parties!

Small businesses – firm up or pay up

In the run up to Christmas employers are being warned to ensure their employees are reminded of the appropriate behaviour expected from them at work, including at the office party.

The law in relation to sex discrimination was extended by new regulations introduced on 1 October 2005. Employers should be aware that they could be held liable for the discriminatory action of their employees in the absence of training provided to those employees. Any unwanted behaviour, including physical or verbal conduct, which violates a female employee’s dignity or creates an intimidating, hostile, degrading, humiliating or offensive environment for her is actionable against an employer if its relevant conduct and behaviour policies do not cover such situations. This could even include a ‘drunken groping incident’ at the staff Christmas party.

Employers themselves must also be aware that in addition to the above, putting a pregnant woman in a disadvantageous position because of her pregnancy or treating a married (or unmarried) woman differently to an unmarried (or married) woman can also constitute discrimination. The law is strict and actions brought by aggrieved employees regularly result in large payouts by less vigilant or organised employers.

However, there is an upside. Future cases could see Employment Tribunals ruling that employers that have updated their policies and provided training to their employees to outlaw sex discrimination have done enough to transfer liability for discriminatory actions to the individual concerned. Successful discrimination actions are costly, particularly to employers and the cost of regular training should be weighed against the potential awards that Employment Tribunals may allow to successful applicants. These steps alone, however, may not absolve the employer from liability if discrimination is allowed to take place unchecked. Employers should be extra vigilant to ensure that employees are at all times acting appropriately, even in social situations.

The new law is of particular concern in the West Country where the number of small businesses with low employee numbers is considerably higher than the remainder of the UK. Small businesses may well have saved on personnel costs by preparing their own employment documentation or keeping it basic, omitting crucial discrimination policies and procedures. Awards against such employers may be enough to make the business insolvent.

So heed the warning, before you finalise the arrangements for the wine-fuelled karaoke session at your local, make sure you have arranged an update to your Employee Handbook!

Any employer wishing to receive further information about the new regulations or requiring a free check of their discrimination policy should contact Martin Follett of Follett Stock Solicitors, Truro Business Park at martin.follett@follettstock.co.uk