Search

How can we help?

Icon

Capita not liable to compensate for employee’s racist comments

Employers can be held legally responsible (vicariously liable) for the discriminatory actions of their employees which have taken place in the course of employment. To avoid being held liable, an employer would have to show that it took all reasonable steps to prevent the discriminatory actions from occurring. This is exactly what Capita managed to do in a recent racial harassment case, brought against both Capita and one of Capita’s operations managers.

The claimants in this claim complained about a racist comment made by their manager in the workplace.  Although the manager denied this, the Employment Tribunal (ET) found the claimants’ evidence ‘clear and convincing’.

To avoid being held liable, an employer would have to show that it took all reasonable steps to prevent the discriminatory actions from occurring.

The ET upheld complaints against the manager, but Capita were not held vicariously liable.  The ET concluded that Capita had done everything it reasonably should have to prevent the incident.  The ET commented: “Capita did not just have comprehensive policies in place. It communicated them, trained all employees on them and updated that training annually.”

This case is a reminder of an adage that employers are generally wise to follow: ‘prevention is better than cure’. In following the adage, organisations should seek to become model employers; putting in place effective policies and training, following fair practices and cultivating open and honest workplace cultures.  Many employers take action once matters have been reported to them, as they should, but this does not detract from the obligation to take reasonable steps to prevent such situations occurring in the first place.

Disclaimer
This information is for guidance purposes only and should not be regarded as a substitute for taking legal advice. Please refer to the full General Notices on our website.

Author profile

About this article

Read, listen and watch our latest insights

art
  • 28 October 2025
  • Immigration

Supplementary Employment: When is it Allowed under UK Immigration Rules?

This article provides a guidance to understanding the rules on supplementary employment in the UK.

art
  • 24 October 2025
  • Commercial Real Estate

Navigating the building regulations regime in commercial property transactions

Building control is said to be one of the earliest forms of local government in England, with the modern building regulations progressing in the aftermath of the Great Fire of London.

art
  • 23 October 2025
  • Employment Rights Bill

Government launches Employment Rights Bill consultations – key changes employers need to know

The Employment Rights Bill is a draft law set to significantly expand workers’ rights. The Government has now launched the first round of consultations.

art
  • 23 October 2025
  • Privacy and Data Protection

AI and Data Protection – Is Fair and Transparent Privacy Possible?

We live in a digital world. Every facet of daily life is governed to some degree by phone, web or some form of connected technology.

art
  • 16 October 2025

Chambers and Partners 2026: Clarkslegal’s continued commitment to excellence

Clarkslegal is delighted to announce that we have once again been recognised by Chambers and Partners as a leading firm in their 2026 guide.

art
  • 15 October 2025
  • Immigration

Registering a child as a British Citizen: A guide to section 3(1) applications

This article explains the process of registering a child as a British citizen under section 3(1), including the eligibility criteria, the Home Office approach, and key factors that influence whether an application is approved.