Summer 2010

Legal Update

Employment Update- Equality Act 2010

The main provisions of the Equality Act 2010 are due to come into force in October 2010.

The aim of the Equality Act is to harmonise existing discrimination laws and strengthen equality law. The new Act brings together many of our existing discrimination laws, but it also introduces some important changes.

The key changes for employers are:

• Introduction of dual discrimination claims. The new rules will allow a person to bring a claim if they have been discriminated against because of a combination of two relevant protected characteristics.  The protected characteristics are age, disability, gender reassignment, marries and civil partnership, pregnancy and maternity, race, religion or belief, sex, sexual orientation.


• An extension of the definition of discrimination and harassment to include claims by ‘association’ and ‘perception. The introduction of these claims should provide protection to individuals who are subject to discrimination because they care for a disabled person or relative or are wrongly perceived to have a protected characteristic.


• New rules to limit pre-employment health enquiries. The new Act will prevent employers from asking job applicant’s questions about their health, unless they are related to the role.


• Recruitment and promotion of under-represented groups. The new Act will allow employers to favour under-represented groups during the recruitment process to improve workforce diversity providing all the candidates are equally suitable.


• Gender pay transparency. The new rules will restrict the use of secrecy clauses in contracts of employment which seek to prevent employees from discussing their pay. Such clauses will no longer be enforceable. The Government will also be given the power to require large employers (250 employees or more) to publish information about gender pay differences.


• Enhanced powers for employment tribunals. The Act will allow Tribunals to make recommendations to eliminate discrimination or inequality in relation to an employer’s whole workforce, not just individual employees.

Service Providers

The Act will also introduce new standards for service providers to prevent discrimination, harassment or victimisation in the provision of services. Under the new rules it will be unlawful for service providers to refuse to provide services, to provide different quality services or to subject a person to any other detriment because of a protected characteristic (excluding marriage and civil partnership). To prepare for these changes service providers should ensure their equality policies are up to date and employees are fully briefed on the new rules.

Rachel Brown is a Solicitor within the Litigation Department at Wortley Byers LLP (www.wortleybyers.co.uk). Wortley Byers is a well established law firm in Brentwood, Essex providing a wide range of services and specialist advice. If you would like to discuss any of the issues raised in this article or would like to receive further information on Wortley Byers services please contact Rachel on 01277 268365 or by email at rbrown@wortleybyers.co.uk

Charity Law Update – Charitable Incorporated Organisations

The Charities Act 2006 introduces a new legal form of incorporation designed specifically for charities. Charitable Incorporated Organisations (CIOs), which are expected to come into force in 2010, are a new corporate structure giving existing and new charities an alternative option to the current range of structures available to charities.  

At present charities can be set up with a corporate structure, but this means that they fall within the requirements of both company law and charity law. This is not ideal as they have to register with both the charity commission and Registrar of Companies, and due to dual regulation are required to provide accounts and returns to both regulatory authorities.

CIOs will combine the advantages of a corporate structure such as having a separate legal personality which will allow them to contract and hold property in their own name and benefit from reduced personal liability for their members and trustees, and yet be regulated by a single regulatory authority. CIOs should also benefit from having less onerous reporting and accounting requirements, and make it cheaper and easier for existing incorporated charities to comply with their administrative responsibilities.

Miz Choudhury is a Solicitor within the Company Commercial Department at Wortley Byers LLP (www.wortleybyers.co.uk). Wortley Byers is a well established law firm in Brentwood, Essex providing a wide range of services and specialist advice. If you would like to discuss any of the issues raised in this article or would like to receive further information on Wortley Byers services please contact Miz on 01277 268368 or by email at mchoudhury@wortleybyers.co.uk

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