Equality Law (SQA National 5 Business Management): Revision Note
Exam code: X810 75
The Equality Act
The Equality Act 2010 is a law that aims to protect people from discrimination in the workplace and in wider society
It ensures that everyone has equal opportunities regardless of personal characteristics
Protected characteristics
It is illegal to treat someone unfairly because of any of the following nine protected characteristics
Protected characteristic | Example |
|---|---|
Disability |
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Gender reassignment |
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Sexual orientation |
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Sex |
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Marriage and civil partnership |
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Pregnancy and maternity |
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Race |
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Religion or belief |
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Age |
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Types of discrimination
Type | Explanation |
|---|---|
Direct discrimination |
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Indirect discrimination |
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Victimisation |
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Harassment |
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Responsibilities for businesses
Businesses must make sure that their policies and behaviour comply with the law
They can do this by
Having an equal opportunities policy.
Giving equality and diversity training to all staff.
Making reasonable adjustments for employees with disabilities.
Taking complaints of discrimination seriously and fairly.
These actions help create a respectful, inclusive workplace and reduce the risk of legal action
Case Study
Bannock Interiors is a family-run furniture company with 40 employees. The business designs and sells bespoke home furniture across Scotland.
Breach
A complaint was made by an employee, Aisha, who felt she was treated unfairly because of her religion.
Management refused her request for short prayer breaks during the working day.
When she raised the issue, her supervisor began excluding her from meetings and criticising her performance unfairly.
This was a case of both indirect discrimination and victimisation
Consequences
The employee took the business to an employment tribunal.
Highland Interiors was found to have breached the Equality Act 2010 and was required to pay compensation.
The company’s local reputation suffered, and two clients cancelled orders.
In response, the firm introduced a new Equality and Diversity Policy, offered manager training, and created a private prayer space for staff.
Examiner Tips and Tricks
Students often think equality law is only about gender. It actually covers all protected characteristics, such as age, race and disability. Examiners look for understanding that the law ensures fair treatment in recruitment, pay and promotion, preventing discrimination in any form
The National Minimum Wage Act
The National Minimum Wage Act 1998 and the introduction of the National Living Wage ensure that all workers are paid fairly for the work they do
It is illegal for employers in the UK to pay less than the set minimum rates
These laws help to
Protect workers from being underpaid.
Promote fairness and reduce poverty
Encourage businesses to value and motivate their staff
1. National Minimum Wage
The National Minimum Wage is the lowest hourly rate that employers can legally pay to workers under the age of 21, including apprentices
The rate depends on the worker’s age and whether they are an apprentice.
Category | Hourly rate (April 2025) |
|---|---|
21 and over | £12.21 (National Living Wage) |
18 to 20 | £10.00 |
16 to 17 | £7.55 |
Apprentice | £7.55 |
All employers must follow these rates that are changed every April
2. National Living Wage
The National Living Wage was introduced in 2015 for workers aged 21 and over
It is higher than the National Minimum Wage because it aims to reflect the cost of living, helping adult workers afford basic needs like food, rent and bills
Enforcement
His Majesty’s Revenue and Customs (HMRC) checks that employers are paying the correct rates
If a business is found underpaying staff, HMRC can
Order them to make back payments to workers
Charge a fine
Take the employer to court
Publicly name and shame the business
Impact on businesses
Positive impacts | Negative impacts |
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