Organisations are liable for acts of racial discrimination carried out by their employees against other employees. If an organisation learns about its employees' acts of racial discrimination but does nothing appropriate about them, it can find its conduct counting against it in legal proceedings. Such was the situation that Abbey National (part of the Banco Santander Group) faced in the UK landmark case of Chagger v Abbey National plc & Hopkins [2006], where Abbey National's lack of compliance with the Code of Practice on Racial Policy in Employment contributed to the Employment Tribunal's judgement of race discrimination, which (after Abbey National's refusal to comply with the Tribunal's order to re-instate Mr Chagger to remedy its wrongdoing) led to the record £2.8 million compensation order. The case provides important references regarding the Code of Practice on Racial Policy in Employment.
Balbinder Chagger, of Indian origin, was employed by Abbey National on a remuneration of around £100,000 per annum and reported into Nigel Hopkins. In 2006, he was dismissed ostensibly for reason of redundancy. The Tribunal found that Mr Hopkins had used the redundancy process as a means to remove Mr Chagger from his position, and that both Mr Hopkins and Abbey National had discriminated against Mr Chagger on the grounds of race in respect of his dismissal.
An organisation should be able to defend itself better in a case of alleged racial discrimination brought against it if it can show that it complied with the steps recommended in the Code of Practice on Racial Policy in Employment. The code aims to provide employers with practical and clear guidance on what is good equal opportunity practice, how to achieve equal opportunity and how to prevent racial discrimination. The code recommends steps for employers to adopt and put into practice effective policies designed to ensure equal opportunity for everyone and to prevent racial discrimination. Compliance with the code should reduce legal liability risk and reputation risk.
The code recommends that employers establish an Equal Opportunities Policy, which makes explicit reference to racial equality. Furthermore, the code recommends that employers put their Equal Opportunities Policy into practice, thus demonstrating that they are serious about equality. The code recommends that employers promote the Equal Opportunities Policy; provide appropriate Equal Opportunity training for officers who have particular responsibilities under it (some officers may need more advanced training, depending on their responsibilities); monitor employees and applicants for employment, promotion and training, by racial group, and review all employment policies, procedures and practices, to see if they are potentially discriminatory or obstruct equality of opportunity; and take steps to remove potential discrimination, and reduce any significant disparities between racial groups. Monitoring allows employers to discover any disparities between racial groups and to investigate the underlying causes. Monitoring and investigating disparities sends a clear message that the organisation is serious about achieving fair and equitable participation.
The Employment Tribunal in Chagger v Abbey National plc & Hopkins [2006] noted that Mr Chagger had tried to address his allegations of race discrimination directly with Abbey National and Mr Hopkins, through the company's own complaints and grievance procedures. However, Abbey National had not provided Equal Opportunity training to any of the managers it allocated to hearing and deciding on Mr Chagger's issues, there was a culture at Abbey National of tending to deny and refuse Mr Chagger's issues, and Mr Chagger's issues were dismissed out of hand. The Tribunal criticised both Mr Wilson and Mr Brener in particular (two of the senior managers that heard and decided on Mr Chagger's issues) for appearing to believe that if there was no overt 'racial prejudice' then there could be no race discrimination. The Tribunal found that Abbey National was in breach of the steps recommended by the statutory Code of Practice on Racial Policy in Employment by not providing the managers with Equal Opportunity training.
Employers can also demonstrate their commitment to equality in the workplace by implementing procedures that monitor fairness. The Tribunal also found that Abbey National was in breach of the steps recommended by the statutory Code of Practice on Racial Policy in Employment with regard to monitoring too. The Tribunal noted a multitude of monitoring failures, including the failures to take allegations of race discrimination seriously and to investigate them promptly.
Employers who do not comply with the steps and practices recommended by the Code of Practice on Racial Policy in Employment can find their apparent lack of commitment to equality counting against them. Abbey National's lack of compliance with the employment practices recommended by the Code of Practice on Racial Policy in Employment contributed (amongst other factors) towards the Employment Tribunal's finding that Abbey National and Mr Hopkins had discriminated against Mr Chagger on the grounds of race in respect of Mr Chagger's dismissal.
Abbey National plc & Hopkins v Chagger [2008] http://www.bailii.org/uk/cases/UKEAT/2008/0606_07_1610.html Colour Discrimination Employment Law http://www.submityourarticle.com/articles/Simon-King-5609/Ab bey-57850.php
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