As many diversity and inclusion initiatives face scrutiny and transformation globally, UK employers now, more than ever, must remain aware of their existing legal and regulatory obligations in relation to diversity and inclusion in the UK.
As we explore in this article, for UK employers with operations in the US, it will be crucial to navigate the differing legal landscapes carefully. While multi-national employers will need to comply with the local laws in each jurisdiction, UK employers must ensure that any adjustments in diversity policies do not undermine legal compliance in the UK.
Recent developments in the US
In recent years, diversity and inclusion initiatives have been at the forefront of many organisational strategies, aiming to foster inclusive workplaces that reflect societal diversity. However, recent developments in the United States have prompted a re-evaluation of these initiatives (which are more commonly known as “Diversity, Equity, and Inclusion” or “DEI”).
Notably, following a ruling of the US Supreme Court in June 2023 which declared that US college race-based affirmative action programmes (which put race as a potential criterion for college admission) were “unconstitutional”, companies such as Meta, Amazon and McDonalds have scaled back or restructured their DEI programs, citing legal and political shifts.
Since then, President Trump has issued several executive orders aimed at dismantling DEI initiatives within the federal government and influencing private sector practices. These orders mandated the termination of federal DEI programs, redefined “sex” based on biological distinctions, and sought to eliminate DEI-related policies among federal contractors and grant recipients. Additionally, the Attorney General was directed to identify and pursue enforcement actions against major private sector entities, including corporations, non-profits, and educational institutions, that continued to implement DEI initiatives.
In response to these executive orders, some organisations faced direct repercussions. For instance, the law firm Paul, Weiss, Rifkind, Garrison & Wharton reached an agreement with the Trump administration to avoid severe penalties, including the suspension of security clearances and termination of federal contracts. The firm agreed to provide $40 million in pro bono services aligned with the administration’s agenda, audit its hiring practices, and discontinue DEI policies.
On 17 March 2025, Andrea Lucas, Acting Chair of the US Equal Employment Opportunity Commission sent letters to 20 other US law firms requesting information about their DEI related employment practices.
These actions underscore the complex and fast-paced changes to the approach to DEI initiatives in the US at the current time.
Why diversity and inclusion remains relevant in UK employment law
In the United Kingdom, diversity and inclusion is not merely a corporate ethos but is underpinned by robust legal frameworks designed to promote equality and prevent discrimination.
The Equality Act 2010 serves as the cornerstone of anti-discrimination law, protecting individuals from unfair treatment based on “protected characteristics”, namely age, disability, gender reassignment, race, religion or belief, sex, sexual orientation, marriage and civil partnership, and pregnancy and maternity. Employers are legally obliged to ensure that their policies and practices do not discriminate, either directly or indirectly, against employees or job applicants.
The cost of getting diversity and inclusion wrong can be significant for employers – both reputationally and financially, since there is no cap on the level of compensation which Employment Tribunals can award for successful discrimination claims. For example, in Mrs R Wright-Turner v London Borough of Hammersmith and Fulham and Ms K Dero: 2206237/2018 Mrs Wright-Turner was awarded £4.58m in compensation for disability discrimination in 2024. In this case, Mrs Wright-Turner suffered from ADHD and PTSD and the Council was found to have subjected her to harassment, direct discrimination and discrimination arising from a disability. It acts as a timely reminder of the eye-watering sums that employers could be required to pay out in discrimination cases
Further, the UK Government’s approach to DEI does not appear to have changed following recent events in the US. On 18 March 2025 it launched a new consultation exercise: Equality (Race and Disability) Bill: mandatory ethnicity and disability pay gap reporting – GOV.UK. This consultation seeks views on how to introduce mandatory ethnicity and disability pay reporting for large employers (those with 250 or more employees) and is noted as helping “shape proposals which will be included in the upcoming Equality (Race and Disability) Bill, which, was announced in the King’s Speech in July 2024.”
How do UK employers navigate wider global changes in approach to diversity and inclusion?
Practical take aways
1. In respect of all UK workplaces, the Equality Act remains pivotal. UK employer compliance is essential to guard against legal challenge in the employment tribunal.
- Ensure that any changes made to global diversity and inclusion policies do not inadvertently fall foul of the Equality Act.
- Ensure continued compliance with all applicable guidance and reporting rules, the Equality and Human Rights Commission guidance and codes of practice, and any gender pay gap and/or listing reporting rules applicable to businesses in the UK.
2. Reminder: the general rule is that an employer must not treat one person more favourably than another because of a protected characteristic, other than where the employer has a duty to make “reasonable adjustments” to alleviate issues faced by disabled employees and in certain circumstances relating to employees who have taken maternity leave. However, UK employers can in addition take the following steps to promote diversity and inclusion in their workforces:
- implement proportionate measures to help individuals with protected characteristics overcome disadvantages, meet specific needs, or encourage participation where they are underrepresented; and/or
- in a recruitment and promotion situation, favour a candidate from an underrepresented group if they are equally qualified as others and if underrepresentation is evidenced.
Employers must ensure such actions are proportionate, based on clear evidence, and do not result in unfair treatment of other groups.
A pertinent example of the Equality Act’s application is a recent Employment Tribunal case where the promotion of a minority ethnic employee without a competitive process was deemed unlawful positive discrimination. This case highlights the necessity for employers to balance diversity and inclusion objectives with adherence to merit-based selection processes to avoid potential legal pitfalls.
3. Continue training UK office staff on the applicable equality laws in the UK. Such training has become more important following the recent introduction of the duty on employers to take reasonable steps to prevent sexual harassment.
Changes in the approach in the US may influence employee attitudes in UK workplaces and it is important that UK employees understand the law that remains applicable to them and their UK workplace.
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