News Article

Unlawful discrimination due to association not limited to employees.

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In a landmark ruling, the EAT has held that a claim of discrimination can be brought by a limited company. In this case a solicitor providing a service to a limited company through his service company was allowed to bring in a claim of unfair discrimination. Mr Abrams was the sole director of Garry Abrams Limited (GAL) and provided a service to EAD Solicitors LLP. According to EAD’s LLP agreement, when a member reaches the age of 62, they would retire and not receive any further payment. Accordingly EAD stopped paying GAL at the end of the year when Mr Abrams reached the age of 62. 

GAL raised a claim of associative age discrimination against EAD under section 13 of the Equality Act 2010. Section 13 refers to discrimination “against another… because of a protected characteristic” and there is no stated requirement in the Act for the “other” to be an individual person. The EAT upheld the tribunal’s decision that a limited company can pursue a claim of discrimination. 

The decision would imply that companies can now bring in a claim of unfair discrimination to a tribunal if they for example, lose a contract or fail to win a contract due to their senior managers’ age, religious beliefs, or due to any such associations. 

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