Disparate Effect

Meaning & Definition

The term ‘disparate effect‘ is used to describe an unintentional bias against a group of employees based on their gender, caste, religion, age or disability due to discrimination that occurs through an otherwise neutral workplace policy and practice. This effect happens even though there was no intent to discriminate against them; the resulting outcome has the same effect on different groups of employees.

Important features of Disparate Effect

• Enables HR to uncover any hidden or indirect discrimination toward the worker.
• Inclusive, fair workplace practices.
• Limits legal liability and damaged reputation.
• Promotes the review of the organization’s policies for unintentional bias.
• Provides support to the organization in strengthening ethical and fair management of its workforce.

Legal & Regulatory Considerations 

There is no law related to “disparate impact” within any Indian employment law, but courts and government bodies may be bound by the principles of Articles 14, 15 and 16 of the Indian Constitution; the Equal Remuneration Act, 1976; and the Rights of Persons with Disabilities Act, 2016. Employers must conduct periodic audits of their human resources policies and procedures for compliance with such regulations.