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Tuesday, July 8, 2025

Employment Update - March 2025 - Travers Smith

In the News

DEI rollback – what does it mean?

A number of US-based multinationals – such as Goldman Sachs, McDonald's and Disney – have reportedly rolled back on their diversity, equity and inclusion (DEI) programmes by abandoning diversity targets or reframing their policies more broadly around "inclusion" rather than diversity. This follows a series of executive orders in the US which reverse DEI programmes in federal government. Quite how far this will impact diversity programmes in the UK remains unclear.

The US has, in some areas, historically had a different approach to DEI than the UK – for example, affirmative action (addressing imbalances by favouring individuals from disadvantaged groups) is not only lawful in certain circumstances but a much more established part of corporate decision making. In the UK, it remains unlawful to positively select an individual for employment or promotion on the grounds of a protected characteristic, such as their sex or race (apart from a very narrow exception in "tie break" situations where two candidates are equally qualified, but this is rarely used). In contrast, positive action – taking proportionate measures to address underrepresentation – is lawful in the UK and many employers adopt targeted work experience or mentoring schemes for this purpose.

Whatever the case, there is undoubtedly potential litigation risk involved with rolling back on DEI statements and initiatives. An employee bringing a discrimination or...



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