Businesses across the UK have voiced alarm over new guidance from the Equality and Human Rights Commission (EHRC) on toilets and changing rooms, warning that the rules could prove “confusing”, “unworkable” and damaging to workplace inclusion.
The watchdog’s proposed code of practice, submitted to ministers earlier this month, follows April’s supreme court ruling on biological sex. It is expected to restrict transgender people from using facilities aligned with their lived gender and could allow organisations to request birth certificates to enforce single-sex spaces.
Stonewall Raises Alarm With Ministers
LGBTQ+ charity Stonewall has written to business secretary Peter Kyle and trade minister Chris Bryant, warning of the potential financial impact at a time when many companies are already struggling.
The letter argues the guidance lacks “practical examples” for implementation and notes that when the Equality Act 2010 was introduced, first-year compliance costs were estimated at more than £300m. Neither the government nor the EHRC has yet produced a new cost assessment.
EHRC chair Kishwer Falkner acknowledged the challenge, urging organisations to seek legal advice and adapt “according to their own circumstances”.
Hospitality and Retail Fears
Industry leaders say the changes could pose severe challenges. Kate Nicholls, chair of UKHospitality, said the guidance must be “as clear as possible”, highlighting the difficulties of retrofitting older or smaller venues.
A spokesperson for the Co-op said: “Our priority is to provide safe and welcoming spaces where all colleagues and customers feel a genuine sense of belonging. The interim guidance did not deliver the clarity needed to protect individual rights.”
Impact on Inclusion
Several business leaders have warned the proposals risk undermining commitments to diversity.
Awin, a global marketing company, said requiring staff to present documentation such as birth certificates would be “inappropriate” and “misaligned with our values”.
KIN, a housing developer, described the proposals as “completely unworkable” for small firms, particularly in construction where employees move between multiple sites.
Growing Opposition From Employers
Last week, more than 100 companies — including Ben & Jerry’s, Allianz Commercial, and Lush — signed a joint letter to equalities minister Bridget Phillipson and Peter Kyle. The letter, coordinated by Trans+ Solidarity Alliance and Safe Space UK, warned that unclear rules on trans inclusion risk leaving businesses “vulnerable” to legal challenges.
It added that organisations were being asked to “adopt practices that are incompatible with modern business values”, further inflaming tensions between business groups and the EHRC.
