A new workplace discrimination case has revealed when DEI can go too far

DEI workplace initiatives are under intense scrutiny around the world. In the US, courts are rolling back diversity requirements and some companies are slashing their DEI budgets. But the UK is also experiencing a wave of complex discrimination cases, particularly around the issue of transgender rights and gender-critical beliefs, both of which are protected under the UK Equality Act.

What was the employment tribunal case about?

Eleanor Frances, a former civil servant, settled an Employment Tribunal case for over £116,000 with the Department for Culture, Media and Sport (DCMS) and the Department for Science, Innovation and Technology (DSIT), alleging discrimination and victimisation related to the handling of Diversity, Equality, and Inclusion (EDI) initiatives.

In 2022, Ms Frances raised whistleblowing concerns about DCMS’s approach to EDI, citing that the department had adopted a Stonewall-backed gender identity and intersex policy without proper consultation. 

She said the policy’s use of politicised language and concepts – for example, defining “transphobia” as including the “denial/refusal to accept” someone’s gender identity – meant that civil servants were effectively compelled to recognise male people as women. 

After raising these concerns, Ms Frances claimed to have experienced a “sustained pattern of unfair treatment,” which continued following her transfer to DSIT. The working environment reportedly became untenable, leading to her resignation.

In January 2025, the case was settled without liability. The government departments agreed to pay £116,749, plus taxes, and have committed to reviewing their gender assignment policies. 

What was the impact of the policy?

Ms Frances’ concerns were based on the impact of the ‘self-identification’ policy which effectively gave men access to female, single-sex spaces such as bathrooms. The adoption of this policy then resulted in the threat of disciplinary action against women who might object to it. 

The policy change came about due to the government department working with the advocacy group Stonewall. However the policy change was not given a proper consultation. 

While DCMS did conduct its own investigation, Ms Frances was informed that her fears were unreasonable and appealed to the head of the civil service. Ms Frances said:

“After raising concerns, I believe that I was subjected to a sustained pattern of unfair treatment. I was given baseless negative performance feedback, and stripped of my team and responsibilities by the same individuals I had named in my complaint. Senior leaders refused to intervene. Ultimately, I concluded that I had no choice but to resign from my role, ending my career in the Civil Service.”

What does this ruling mean for businesses?

The ruling in Eleanor Frances’ Employment Tribunal case carries important implications for businesses, particularly in how they manage DEI policies and those who might object. I

Organisations must balance efforts to foster inclusive workplaces with the legal obligation to respect employees’ rights to hold and express lawful philosophical or religious beliefs. This includes gender-critical beliefs, which are recognised as protected beliefs under the Equality Act 2010. 

It’s important that DEI policies do not impose ideologically driven requirements that could infringe on employees’ rights. Policies and training programmes must be clear, neutral, and compliant with equality laws, avoiding coercive or politicised language. Employers should also ensure consultation with staff or representatives when adopting significant changes, particularly those related to sensitive issues such as gender identity or single-sex spaces.

Another aspect of the case is the importance of fostering a workplace culture where employees feel safe to raise concerns without fear of reprisal. Retaliatory actions or unfair treatment of whistleblowers not only erode trust but also risk legal consequences for victimisation or constructive dismissal. Businesses should ensure that internal grievance and whistleblowing mechanisms are robust, impartial, and accessible to all employees. 

Join our free, 1-hour webinar on “The culture wars at work – Managing protected beliefs under the UK Equality Act” on Wednesday 12 March, 2025 at midday UK time.

Employers are increasingly facing complex challenges when managing a diverse workforce, especially when it comes to issues surrounding protected beliefs under the UK Equality Act 2010. 

One of the most challenging areas is balancing the rights of employees who hold gender-critical beliefs with the rights of transgender employees. This issue has sparked significant debate and legal cases in recent years, making it critical for organisations to understand how to manage these sensitive situations effectively and in compliance with the law.

In this webinar, we’ll explore how the Equality Act 2010 defines and protects different types of beliefs and characteristics, and how to manage the potential for conflict between them. Alongside employment law experts from Worknest, we’ll examine real-world case studies and offer practical advice on creating policies, preventing discrimination, and reducing the risk of disputes ending up at an Employment Tribunal.