Employers face higher compensation risks

Employers could face increased compensation costs if they do not respond to discrimination questionnaires, according to the Equality and Human Rights Commission (EHRC). The EHRC suggests reinstating the requirement, which was removed in 2014. Under section 138 of the Equality Act, failure to respond within eight weeks could strengthen the accuser’s case. Craig Beaumont from the Federation of Small Businesses warned that reinstating the questionnaire could raise costs for firms. Patrick Milnes from the British Chambers of Commerce expressed concern about the impact on small businesses and potential conflicts with data protection regulations. The EHRC said: “Reintroducing a statutory question and answer procedure could mean employees are better informed about pay discrepancies.”