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
  • 09 April 2026
  • Employment

Bereaved Partner’s Paternity Leave: the new statutory right explained

art
  • 02 April 2026
  • Commercial Real Estate

Can I have access to a neighbour’s land to carry out works to my property?

As a landowner, maintaining and repairing your property is important. It may be the case that to do so, you will need to access the land of a neighbour.

art
  • 01 April 2026
  • Privacy and Data Protection

Recognising DSARs: top tips for organisations

The UK GDPR grants Data Subjects, who are the individuals to whom the personal data relates, rights over their personal data, including the rights of access, correction and erasure.

art
  • 30 March 2026
  • Employment

Legislative Changes – What Employers Need to Know for April 2026

With the phased implementation of the Employment Rights Act 2025 (ERA), alongside other legislative updates, April 2026 brings a wide range of important changes for employers.

Pub
  • 27 March 2026
  • Corporate and M&A

Shareholder Disputes: What to do when disputes arise – Episode 4

Join Stuart Mullins and Jack Hobbs for episode four of our Shareholder Disputes podcast series as they confront the realities of shareholder fallouts and share practical strategies for managing these complex situations.

art
  • 24 March 2026
  • Immigration

Spouse Visa – Is your relationship genuine and subsisting?

For years many couples have become frustrated by the requirements for a spouse visa as the rules and guidance are difficult to understand. A significant amount of applications are rejected on the basis of the applicant not providing the adequate documents to evidence the relationship requirement.