UK Equality Act Duties on Employers and Service Providers

Equality Law in Brief

Equality Act 2010 protects against discrimination on nine protected characteristics
Public Sector Equality Duty for public bodies
Reasonable adjustments for disabled workers and customers

Protected Characteristics under the Equality Act 2010

The Equality Act 2010 is the UK's principal equality legislation. It applies to all UK employers regardless of size and protects against discrimination on nine protected characteristics:

Age
Disability
Gender reassignment
Marriage and civil partnership (employment only)
Pregnancy and maternity
Race
Religion or belief
Sex
Sexual orientation

The Act prohibits four forms of conduct in relation to these characteristics: direct discrimination (treating someone less favourably because of a characteristic), indirect discrimination (applying a policy that disadvantages people with a characteristic without justification), harassment (unwanted conduct related to a characteristic that violates dignity or creates a hostile environment) and victimisation (treating someone badly for raising a concern about discrimination). All of these apply to employers of any size, from sole proprietors with one employee upwards.

The Act applies across the employment lifecycle - recruitment, terms and conditions, training, promotion, dismissal and treatment after employment ends. It also applies to access to goods and services, education and the exercise of public functions.

What All Employers Must Do

The core legal duties on every UK employer, regardless of size, are:

Avoid discrimination, harassment and victimisation across the full employment lifecycle and in dealings with customers, suppliers and the public
Make reasonable adjustments for disabled employees and applicants - this is a positive duty under sections 20 and 21 of the Equality Act 2010, requiring employers to take reasonable steps to remove disadvantages caused by physical features, provisions, criteria or practices, or the absence of an auxiliary aid
Take reasonable steps to prevent sexual harassment - the new proactive duty introduced by the Worker Protection (Amendment of Equality Act 2010) Act 2023, which came into force on 26 October 2024 and applies to employers of any size
Pay men and women equally for equal work - the equal pay provisions in Part 5 Chapter 3 of the Equality Act 2010, which apply regardless of employer size

For most SMEs, the practical answer to these duties is a written equality policy, basic awareness training as part of induction, a clear route for raising concerns, and reasonable adjustments handled case-by-case in consultation with the individual concerned. None of this requires elaborate machinery - what matters is that it is in place, communicated, and actually followed when issues arise.

Most equality issues in normal businesses are not dramatic. They are the manager who keeps making jokes that one team member clearly does not find funny. They are the recruiter who passes over the woman returning from maternity because they want someone reliable. They are the rota that always gives the night shifts to the youngest staff because they are assumed to have fewer commitments. None of these are obviously discriminatory if you ask the manager involved - they would all give a reason that sounds reasonable. But each could be a tribunal claim, and the test is not what the manager intended, it is the effect on the person at the receiving end.

What I look for on equality and inclusion is not a thick policy document. I look for evidence that the policy is actually working - training records that include equality content as part of induction and refreshers, examples of reasonable adjustments that have actually been made, complaints handled through the grievance procedure and resolved without escalation, and feedback mechanisms that allow staff to raise concerns. A policy that has not been read in three years, in an organisation that has had no recorded complaints and no recorded adjustments, is rarely a sign of a flawless culture. More often it is a sign of a culture where issues are not being raised because there is no confidence they will be heard.

The Worker Protection Act 2023 sexual harassment duty has changed what auditors look for in this area. Previously, equality was largely about not discriminating; now there is a positive duty to take reasonable steps to prevent sexual harassment specifically, including by third parties such as customers and contractors. That means a risk assessment, specific anti-harassment training, clear reporting routes that include third-party harassment, and active monitoring. The reasonable steps defence is not optional - failing to take it can result in a 25% uplift on tribunal compensation, on top of the underlying award.

The Sexual Harassment Duty - All Employers

The Worker Protection (Amendment of Equality Act 2010) Act 2023 introduced a proactive duty on all employers - regardless of size - to take reasonable steps to prevent sexual harassment of their employees. It came into force on 26 October 2024. The key features are:

The duty applies to all UK employers, from sole traders upwards
It is a proactive duty - the employer must take steps before any incident, not just respond afterwards
It covers harassment by colleagues and by third parties (customers, contractors, suppliers, members of the public) under EHRC guidance
Failure to take reasonable steps allows tribunals to uplift compensation by up to 25% on a successful sexual harassment claim, on top of an uncapped underlying award
The Equality and Human Rights Commission (EHRC) can also take enforcement action, including requiring an action plan, even where no individual claim has been brought

What "reasonable steps" looks like depends on the size of the organisation, the sector, the working environment, and the level of risk. For most SMEs, the EHRC technical guidance suggests:

A written sexual harassment policy, distinct from the general equality policy, that defines harassment and sets out reporting routes
A risk assessment that identifies where harassment risk is heightened (sectors with high public contact, late shifts, lone working, power imbalances, alcohol-related events)
Training proportionate to roles - basic awareness for all staff, more detailed training for managers
Clear reporting channels - including a non-line-manager option, since the line manager may be the issue
Consequences for breach - made explicit in the policy and the staff handbook
Periodic review - the duty is ongoing, not a one-off

From October 2026, under the Employment Rights Act 2025, the standard rises from "reasonable steps" to "all reasonable steps" - a higher bar that is intended to require employers to demonstrate they have considered and implemented every step that could reasonably be taken, not just a selection.

Pay Gap Reporting - Large Employers Only

Pay gap reporting obligations apply only to organisations with 250 or more employees. SMEs below this threshold are not required to publish pay gap data, though they may choose to do so voluntarily.

The current and upcoming pay gap obligations for large employers are:

Gender pay gap reporting - in force since 2017 under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. Snapshot date 5 April (private/voluntary) or 31 March (public). Reports due by 4 April or 30 March the following year.
Equality action plans - mandatory from 2027 under the Employment Rights Act 2025, requiring 250+ employers to publish action plans alongside gender pay gap reports, including specific actions on the gender pay gap and on supporting employees through menopause.
Mandatory ethnicity and disability pay gap reporting - confirmed by the government following 2025 consultation, to be introduced for 250+ employers. The implementation date has not been set but the regime will mirror the gender pay gap framework.

Organisations approaching the 250-employee threshold should prepare in advance, since the data collection and reporting infrastructure takes time to set up. For SMEs well below the threshold, pay gap reporting is voluntary - some employers do it for transparency reasons or because customers ask, but there is no legal requirement.

Public Sector Equality Duty

Section 149 of the Equality Act 2010 imposes the Public Sector Equality Duty (PSED) on public bodies and on private organisations exercising public functions. The PSED requires those bodies, in the exercise of their functions, to have due regard to:

Eliminating unlawful discrimination, harassment, victimisation and other prohibited conduct
Advancing equality of opportunity between people who share a protected characteristic and those who do not
Fostering good relations between people who share a protected characteristic and those who do not

For most private SMEs, the PSED applies only when delivering specific public functions under contract - for example a private contractor running a service on behalf of a local authority. The wider duty does not apply to ordinary commercial activity. Public bodies and their contractors typically build PSED compliance into their decision-making through equality impact assessments.

EDI and Recent Whistleblowing Changes

From April 2026, under the Employment Rights Act 2025, the definition of a "protected disclosure" under the whistleblowing framework explicitly includes disclosures about sexual harassment. This means an employee reporting that sexual harassment has occurred, is occurring or is likely to occur is protected from detriment or dismissal as a result of the disclosure. Employers should review their whistleblowing policy and the consultation arrangements through which staff can raise concerns, to make sure these routes are visible and used.

Tribunal Claims and Time Limits

Equality Act claims are normally brought in the Employment Tribunal. Key features:

Time limit: currently 3 months less one day from the act complained of - though the Employment Rights Act 2025 extends this to 6 months for most rights, including most discrimination claims
ACAS Early Conciliation: claimants must contact ACAS before issuing a tribunal claim - this stops the clock for up to six weeks
Compensation: uncapped in discrimination cases, with awards including financial loss, injury to feelings, aggravated damages and interest. Sexual harassment awards may be uplifted by 25% where the employer breached the Worker Protection Act duty
Burden of proof: once the claimant shows facts from which discrimination could be inferred, the burden shifts to the employer to show the treatment was not because of a protected characteristic

For SMEs, the critical point on equality compliance is that nearly all the substantive obligations apply regardless of size. Discrimination, harassment, victimisation, the duty to make reasonable adjustments, equal pay, the new sexual harassment proactive duty - all of these apply to a five-employee firm in exactly the same way they apply to a five-thousand-employee firm. The threshold-based requirements are mostly about reporting (pay gap data, action plans), not about the underlying conduct. So the practical answer for most SMEs is a clear, current equality policy, distinct sexual harassment policy and risk assessment, a working reasonable adjustments process, and a reporting route that staff actually use - the same building blocks at any size.

Practical Advice

For most SMEs, equality compliance does not require a dedicated EDI function or extensive infrastructure. The core elements are an equality policy, a sexual harassment policy and risk assessment (under the 2024 duty), a reasonable adjustments process, and clear reporting routes. The toolkit and policies below provide the documented basis.

Organisations approaching or exceeding 250 employees need to add gender pay gap reporting and, from 2027, equality action plans. Mandatory ethnicity and disability pay gap reporting is also confirmed for 250+ employers, with the start date to be set. SMEs below the threshold can monitor pay equity internally without needing to publish.

alphaZ document	How to use it
IMS Toolkit (ISO 9001/14001/45001)	The integrated management system toolkit. Includes the staff handbook and policy framework that hold the equality, anti-harassment and grievance content - the documented basis for the management system addressing equality compliance.
P-97 Equality and Diversity Policy	The equality and diversity policy. Sets out the prohibition on discrimination, harassment and victimisation under the Equality Act 2010, the reasonable adjustments process, and the reporting routes for concerns.
P-121 Sexual Harassment Policy	The standalone sexual harassment policy aligned with the Worker Protection Act 2023 proactive duty. Includes the risk assessment framework, reporting routes (including third-party harassment) and disciplinary consequences.
P-73 Anti-Bullying and Harassment Policy	The wider anti-bullying and harassment policy covering all forms of harassment including those linked to other protected characteristics. Used alongside the sexual harassment policy.
ER9 Legal Register	The legal register entry for the Equality Act 2010, the Worker Protection Act 2023 and the Employment Rights Act 2025 sits here, alongside the wider employment legislation.

Note: subscribers to alphaZ documents can download all of the documents above as part of the subscription.

Frequently Asked Questions

Do small employers have to comply with the Equality Act 2010?

Yes. The substantive provisions of the Equality Act 2010 - the prohibitions on discrimination, harassment and victimisation, the duty to make reasonable adjustments, and the equal pay provisions - apply to all employers regardless of size. There is no SME exemption. The threshold-based provisions, like gender pay gap reporting at 250+ employees, are the exception rather than the rule. A two-employee business is subject to the same substantive equality duties as a multinational.

What does the Worker Protection Act sexual harassment duty mean for a small business?

The Worker Protection (Amendment of Equality Act 2010) Act 2023 applies to all employers regardless of size. From 26 October 2024, employers must take reasonable steps to prevent sexual harassment of employees, including harassment by third parties such as customers and contractors. For a small business, "reasonable steps" will be proportionate to size and resources but typically include a written sexual harassment policy, a risk assessment, basic training for staff and managers, and a clear reporting route. The 25% compensation uplift available to tribunals on a successful sexual harassment claim - where the duty has been breached - applies regardless of employer size. From October 2026 the bar rises to "all reasonable steps".

When do I have to start gender pay gap reporting?

Gender pay gap reporting under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 applies only when the organisation has 250 or more employees on the snapshot date - 5 April for private and voluntary sector employers, 31 March for the public sector. Below 250 employees, reporting is voluntary. From 2027 under the Employment Rights Act 2025, organisations with 250+ employees must also publish equality action plans alongside their pay gap data. Mandatory ethnicity and disability pay gap reporting has been confirmed for 250+ employers but the start date has not yet been set.

What counts as a reasonable adjustment for a disabled employee?

Reasonable adjustments under sections 20 and 21 of the Equality Act 2010 are steps the employer takes to remove or reduce a disadvantage caused by the workplace, working practices, or the absence of an aid. Examples include changes to working hours, modifications to equipment or workstations, alternative format documents, additional training time, changes to performance criteria, or the provision of equipment such as screen readers. What is "reasonable" depends on factors including the size and resources of the employer, the cost and practicality of the adjustment, and the extent to which it would help the disadvantage. Smaller employers are not exempt from the duty but may have a narrower set of practical options.

Does the Public Sector Equality Duty apply to my business?

The Public Sector Equality Duty under section 149 of the Equality Act 2010 applies to public authorities and to private organisations when they are exercising specific public functions on behalf of a public authority - for example a private contractor running a public service. For most private SMEs, the PSED does not apply to ordinary commercial activity. Where a contract requires PSED compliance, the contracting public authority will normally specify the obligations expected, including any equality impact assessments and reporting requirements.

UK Legislation

Further Resources