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Employee perks have now become a standard part of many workplaces. From flexible working and training budgets to free gym memberships and health insurance, these are often alternatives to salary increases and can be used to both entice new employees and retain existing staff. Yet even well-intentioned perks do not always benefit everyone equally.
In some cases, employee perks can unintentionally disadvantage certain groups and lead to discrimination issues. Understanding how perks are designed and applied can help employees recognise when “extras” become unfair. It can also help employers create a more inclusive approach to benefits across the board.
What Are Employee Perks?
Employee perks are non-essential benefits offered in addition to basic pay. They are designed to make working for an organisation more attractive, support employee wellbeing, or reward performance, but they are not required by law. Common examples include:
- Flexible or hybrid working options
- Performance-related bonuses or commission schemes
- Private medical or dental insurance
- Extra annual leave or travel allowances
- Gym memberships or wellbeing programmes
- Staff discounts or subsidised meals
- Social events or team-building trips
These perks differ from contractual benefits such as holiday entitlement, statutory sick pay, or pension contributions, which are often legal rights. They are designed to be an added extra and are usually offered at the employer’s discretion.
What Is Unintentional Discrimination?
Unintentional discrimination often arises as indirect discrimination. This is where a general rule, referred to as a provision, criterion or practice (PCP), applies to everyone in the same way, but in reality puts people with a protected characteristic at a disadvantage.
Under the Equality Act 2010, protected characteristics include gender, age, race and nationality, ethnic or national origin, sexual orientation, disability, pregnancy and maternity, marriage or civil partnership, and religion or belief. An employer might not intend to exclude anyone, but if the way a perk is structured makes it harder for certain groups to access it or benefit from it, there could be a discrimination issue.
Indirect discrimination can sometimes be justified if the employer can show the rule is in place as a ‘proportionate means of achieving a legitimate aim’ for the business. However, where perks consistently disadvantage particular groups without justification, employees may have grounds to take discrimination claims to the employment tribunal.
Can Employee Perks Create Inequality?
Perks can create inequality when they are easier for some employees to gain or use than others. This may happen because of working patterns, location, health, caring responsibilities, or other personal circumstances. Issues often arise around:
- Accessibility – For example, on-site gym facilities may be difficult for disabled employees to use if they are not accessible.
- Eligibility – Long-service perks may indirectly disadvantage younger employees and could, in some situations, raise questions about age discrimination at work.
- Practical barriers – Travel-based rewards or late-evening social events may be difficult for staff with caring responsibilities or strict religious observance.
Employee perks linked to long hours or constant availability can also favour employees who can stay late, travel at short notice, or attend out-of-hours events. Benefits centred around socialising or networking can disadvantage those who do not drink, have health conditions, or follow certain beliefs. Not to mention, location-specific perks, such as city-centre memberships, may offer little to remote workers or those in different regions.
If these patterns relate to protected characteristics and have a real impact on access to benefits at work, they may raise legal concerns and lead to potential discrimination claims.
Who Might Be Disadvantaged by Certain Perks?
Different groups can be affected in different ways by the same perk. For example:
- Employees with caring responsibilities may struggle with perks tied to working long hours, frequent travel, or evening events. This can disproportionately affect women, which may raise issues of indirect sex discrimination.
- Disabled employees may find some physical or social perks inaccessible if reasonable adjustments are not made.
- Staff with health conditions may not benefit from perks involving intensive activity, particular foods, or environments that trigger symptoms.
- Employees with particular religious commitments may be excluded from events scheduled during holidays or centred around alcohol or certain venues.
- Older or younger employees may be disadvantaged by perks tied to long service, certain types of socialising, or assumptions about “typical” lifestyles, which can feed into age discrimination at work.
Even senior or high-performing employees can be negatively affected. For example, a senior employee who cannot travel frequently due to disability or caring responsibilities might miss out on client-facing opportunities that inform promotion decisions, simply because perks and rewards schemes are structured in this way.
How Employees Can Recognise Potential Discrimination
Perceived unfairness around perks can impact employee morale and trust. Some may feel under pressure to participate in optional activities and worry that not joining in will harm their prospects at a company. Signs to look out for include:
- Repeated exclusion from events, opportunities, or informal perks due to factors linked to a protected characteristic.
- Unequal access to valuable perks such as training trips, client entertainment, or high-profile projects.
- A culture where “commitment” is measured by attendance at social events or willingness to work long, unpredictable hours.
- Perks that are technically open to everyone but, in practice, only used by a small group.
It is important to look at patterns rather than one-off situations. If the same groups of employees are consistently missing out on certain perks, or if those perks are closely linked to promotions, there may be a risk of discrimination that could justify legal action. Understanding your employer’s policies on benefits can also help you assess whether what you are experiencing may fall within discrimination law.
What Can Employees Do if Perks Feel Unfair?
If workplace perks feel unfair, there are some steps you can take. Start by raising the issue informally with your manager or HR, focusing on fairness and impact. Explain how the perk operates in practice, who is missing out, and how this may disadvantage certain groups. Suggest practical alternatives or more flexible options where possible.
If informal discussions do not resolve the problem, you can review your employer’s grievance policies, use formal HR channels to set out your concerns, keep a record of instances where you feel excluded or disadvantaged, and get some independent legal advice, particularly if you believe you may have grounds for discrimination claims.
Framing your concerns around inclusion, rather than personal preference, can help your employer understand that the issue may fall under discrimination law.
When Good Intentions Are Not Enough
Good intentions alone do not prevent discrimination. Even perks introduced to reward loyalty or support wellbeing can lead to legal problems if they disadvantage certain groups. Employers should be prepared to regularly review benefits, listen to feedback, and adapt perks as needed. Perks should support and encourage, not divide, the workforce.
If you believe that workplace perks are putting you at a disadvantage because of a protected characteristic, you may need specialist advice. An experienced discrimination law firm can assess whether what you are experiencing could amount to unlawful discrimination at work and explain your options.
Nationwide Employment Lawyers have extensive experience in discrimination claims, including complex cases involving employee benefits and workplace policies. They provide clear, practical advice focused on achieving the best possible outcome at a cost-effective rate. Contact the team of discrimination solicitors today to discuss your unique situation in confidence and find out how they can help with employment law cases.
