Embracing equality and diversity can be a work winner, businesses have been told.

But conversely a failure to treat the issue seriously is likely to prove extremely costly, warns Sandra Wallace, employment partner at the Birmingham office of law firm DLA Piper.

Her comments follow the passing of the Equality Act – pulling together anti-discrimination laws but also incorporating new rights and remedies to protect individuals.

In particular it addresses pay discrimination against women; looks to tackle the stigma too often faced by job-seekers with disabilities; extends beyond the workplace to cover the provision of goods and services to consumers in relation to sexual orientation; and makes it unlawful to offer less favourable treatment on the ground of age without justification.

DLA Piper has launched an Equality Act Survival Guide designed to help businesses through the maze.

Ms Wallace said: “The implications of not embracing equality and diversity can be serious – the risk is that policy failings and other problems will lead to claims, litigation, financial loss and damage to corporate reputations and brands.

“Problems occur when organisations either don’t understand the legal requirements or fail to treat such issues with the care and commitment they require. Managing and embracing diversity and equality need to become second nature.

“It is also important to remember that this isn’t only about avoiding the negative implications – treating equality and diversity seriously can have a beneficial effect.

“For example, most large employers already have policies and commitments that protect employees and the company, enabling it to be promoted as an ‘employer of choice’ and helping attract and retain high calibre staff.

“And companies that can demonstrate an impressive equality record may be at a distinct advantage when bidding for public sector – and increasingly private sector – contracts.”

Ms Wallace highlighted two particular challenges – addressing the equal pay agenda given a gender gap of 17 per cent for full-timers and working to “do the right thing” while ensuring costs are not prohibitive.

She cautioned: “The economic climate is making it more difficult for organisations to justify employing diversity managers who can champion inclusiveness and equality from within.

“So it is essential that executives, front-line managers, HR and other professionals fully understand and then effectively communicate and implement key initiatives. The real danger is that if such issues are pushed down the list of priorities, the risk of problems and discrimination-related litigation increases significantly.”