Gender Equality Act: Protecting Employees from Discrimination

The number of claims and proceedings relating to the Gender Equality Act (GlG) has increased in recent years. When a company becomes involved in such a case, it is unpleasant and can quickly become expensive. It is advisable to take the objectives of the GlG seriously and avoid potential pitfalls.

For companies with 100 or more employees, there is no way around actively addressing equality among their female and male employees.

In smaller companies, by contrast, awareness of the associated requirements varies considerably. Many are familiar with the Gender Equality Act only by name or do not consider themselves affected. The problem is that the likelihood of coming into conflict with this law is increasing.

The number of proceedings in this area has risen significantly in recent years, as a look at the register maintained by the specialist equality offices makes clear. The categorisation of these proceedings provides an overview of the most important problem areas. These four leading categories in particular show where companies face the greatest risks of violating the Gender Equality Act.

Dismissal

Allegations of discrimination occur particularly frequently in this area. A typical example is the allegation of “retaliatory dismissal”, where employees are dismissed after making complaints.

There is also an above-average number of cases involving the dismissal of women in connection with pregnancy.

Different opinions or verbal disputes are not a legitimate reason for dismissing employees.

Compensation

Claims for financial compensation often go hand in hand with proceedings concerning unfair dismissal. Whether a court makes a decision or an out-of-court settlement is reached – companies found at fault usually face significant costs.

Equal Pay

Paying women and men differently for the same work is becoming increasingly difficult to justify today. If a company becomes involved in such discrimination proceedings brought by a female employee, it is hardly possible to maintain a relationship of trust.

In addition, there may be substantial claims for back pay.

Sexual Harassment

Employers are obliged to ensure the protection of their employees – including when there are indications of sexual harassment.

Even small businesses are advised to develop internal guidelines and define in advance the procedure for dealing with allegations of sexual harassment. Support from external specialist organisations can be helpful in this regard.

Bad for the Reputation

When a company becomes involved in discrimination proceedings, the consequences are negative on many levels. The financial cost is only one aspect.

Such disputes are also damaging to the internal working environment. In particular, there is a risk of reputational damage if customers and the public learn that the company discriminates against employees.

Last but not least, companies that take a passive approach to the Gender Equality Act tend to face procedural disadvantages in court – for example, higher fines.