Companies that scrap DEI policies could face legal challenges

Specialists in employment law are warning UK companies that they could face legal challenges if they decide to scrap their diversity, equity and inclusion (DEI) programmes, as backlash against these policies mounts in the US.

The Employment Lawyers’ Association (ELA) has published an open letter that is aimed at business owners. In this letter, it states that getting rid of those programmes would leave companies vulnerable to legal action on the grounds of discrimination. This comes at a time when the Trump administration in the US is seeking to ban such policies throughout the country.

In the wake of his election victory, there was speculation that UK companies would respond to the so-called ‘vibe shift’ by abandoning their commitment to DEI. However, the ELA has warned that this would leave them wide open from a legal perspective.

The Equality Act 2010 provides some protection for companies if one of their employees is accused of discriminatory behaviour. Any such defence would be useless if the company in question did not have clear DEI policies and training in place though. That is because discrimination tribunals weigh up the absence or presence of such policies when making their decisions.

This is why a human resources (HR) department is essential in the modern corporate world, not just a luxury. It will typically be project management HR services that devise DEI policies and plan training programmes.

Despite the concerns of the ELA, there is no indication that companies in the UK are changing their minds about DEI. Survey results have shown continued widespread support for the policies.