The issue
Aon and its insurer partners are aware of a recent increase in discrimination claims against clients in the leisure and hospitality sector, including casual dining restaurants and pubs.
A common theme is for customers to arrive and identify themselves as being from the traveller community, with a large group on their way to the premises with the aim to ask for service on arrival. Sometimes there is a threatening undertone or previous experience of non-payment or aggressive behaviour.
If service is refused, staff are probed for the reasons with this exchange filmed using mobile phones or concealed cameras.
Legal context
The Equality Act 2010 makes it unlawful to discriminate in the way goods and services are provided to the public. Protected characteristics under the Act include age, sex, race, religion or disability.
Compensation can be awarded for upset and distress (injury to feelings), even if there is no financial loss.
Claims brought under the Equality Act can be difficult to defend where there is evidence that the reasons for denial of service were discriminatory.
These claims can result in legal costs to defend, compensation awards and have a negative impact on the reputation of the business.
Our advice
Businesses have the right to refuse service if the reasons are not discriminatory. If you consider it appropriate to refuse service, you are permitted to do so and don’t have to provide a reason if pressed.
Refusal of service should not be based on a general blanket policy that covers a specific group of people or on an individual’s characteristics.
Premises Licence Holders and Designated Premises Supervisors should refer to the overarching licencing objectives* and upholding of these, which are:
- The prevention of crime and disorder
- Public Safety
- Prevention of public nuisance
- Protection of children from harm
*as per the Licencing Act 2003
Designated Premises Supervisors, in the absence of the Licence Holder, should record any decision for refusal of service. Records should be kept with reasons for refusal to ensure an audit trail is readily available if needed later.
CCTV records can support the defence of any claims that do arise. Footage of any incidents of this type should be retained.
If policies are introduced such as group size limits, pre-payment or deposits, these must apply to all customers rather than being targeted at a specific group.
Some bans and policies may have a discriminatory impact (e.g. dress codes). Consider and document the reasons for the introduction of any new policy. Is it proportionate and for a legitimate aim?
Staff should be educated on the provisions of The Equality Act, company policies relating to service and how to respond in a confrontational situation.
Waiting staff, bartenders and other front of house employees are the individuals who will encounter members of the public and for whom training is essential.
Any verbal information provided to a premises, identifying any specific risk by a Responsible Authority, should be noted and record kept of its contents, including from whom the information is received, noting their name and collar number (if Police) and position if local authority or otherwise.
If you require any further advice or support on this subject and steps that can be taken to reduce the risk of these types of claims, please contact your Aon service team.
For more information contact [email protected]
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