''Avoid huge discrimination awards by making sure equality policies are robust and up to date''

1/17/2012 9:06 AM EST

With the allegation of 'institutionalised racism' being levelled at a couple of organisations recently, employers need to be absolutely sure that they follow their grievance and equality policies consistently and treat any employees who complain with the utmost fairness.

That's the advice from Michael Slade, Managing Director of employment law specialist and health and safety advisor Bibby Consulting & Support.

Slade was responding to news that allegations of 'institutionalised racism' had been made by a former NHS manager’s trade union representative during his employment tribunal hearing for race discrimination and unfair dismissal against the Central Manchester University Foundation NHS Trust. The manager was awarded almost £1m in compensation. This case followed one in December 2010 where a former employee of Mid Yorkshire NHS Trust was awarded £4.5m for “an extensive process” of race and sex discrimination.

In both cases, the employees claimed that they were pilloried by their employers for bringing formal grievances. Slade said this highlighted the need for employers to make sure they applied their grievance and equality policies properly and treated their employees fairly rather than making life difficult for them if they complained.

Also, employers need to be aware there is no maximum award in discrimination cases and therefore breach of discrimination legislation could cost them a lot of money. Indeed, some smaller firms have been forced into liquidation when they have been ordered to pay large awards to claimants.

"The term 'institutionalised racism' can sound like a serious allegation, as if an organisation is deliberately discriminating against certain employees," Slade said. "However, it could be that claimants may feel they have been discriminated against because their employers have failed to put robust equality policies in place."

He went on: "Public bodies are obliged to publish relevant, proportionate information showing compliance with the Equality Duty, they need to show transparently that they are complying with the very latest equality legislation. We believe that all employers should operate on this basis because only by being pro-active on this issue can they ensure they treat all employees fairly and equally in all the circumstances, while building a defence against serious and costly claims of discrimination."

Slade reminded all existing clients of Bibby Consulting & Support to use the 24-hour support line if they needed clarification or support with matters related to discrimination at work.

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