Equality Act 2010, section 144

Contracting out

Part 10 Contracts, etc.

(1)A term of a contract is unenforceable by a person in whose favour it would operate in so far as it purports to exclude or limit a provision of or made under this Act.

(2)A relevant non-contractual term (as defined by section 142) is unenforceable by a person in whose favour it would operate in so far as it purports to exclude or limit a provision of or made under this Act, in so far as the provision relates to disability.

(3)This section does not apply to a contract which settles a claim within section 114.

(4)This section does not apply to a contract which settles a complaint within section 120 if the contract—

(a)is made with the assistance of a conciliation officer, or

(b)is a qualifying [F181settlement agreement F181] .

(5)A contract within subsection (4) includes a contract which settles a complaint relating to a breach of an equality clause or rule or of a non-discrimination rule.

(6)A contract within subsection (4) includes an agreement by the parties to a dispute to submit the dispute to arbitration if—

(a)the dispute is covered by a scheme having effect by virtue of an order under section 212A of the Trade Union and Labour Relations (Consolidation) Act 1992, and

(b)the agreement is to submit the dispute to arbitration in accordance with the scheme.

Definitions used in section 144 2

breach of an equality clause or rule

(8)A reference to a breach of an equality clause or rule is a reference to a breach of a term modified by, or included by virtue of, an equality clause or rule.

Defined in s.212(8) · see it in the full Act
non-discrimination rule

“non-discrimination rule” has the meaning given in section 61;

Defined in s.212(1) · see it in the full Act

Cases considering section 144 9

Irwell Insurance Company Ltd v Watson & Ors

[2021] EWCA Civ 67 · 22 January 2021Limits

Limits agreements which exclude or restrict proceedings under the Equality Act. The provision prevents reliance on the arbitration clause to remove or limit the right to pursue discrimination claims in the Employment Tribunal (see paras [47]-[48]).

J Edward v North London NHS Foundation Trust

[2026] EAT 116 · 5 August 2026

The section’s restriction on contracting out does not prevent a tribunal from making an order by consent in agreed terms, even where the agreement’s full and final settlement provision is unenforceable. The tribunal’s order is a separate decision made under its procedural power. (see paras [38]–[50])

Ian Clifford v IBM United Kingdom Ltd

[2024] EAT 90 · 10 June 2024Interprets

Section 144(1) prohibits contractual exclusion or limitation of Equality Act rights, subject to the statutory settlement exception. The Court construed that exception as part of the statutory scheme. (see paras [107]-[110]) The provision disapplies the prohibition on contracting out for a contract settling a section 120 complaint where the statutory route is satisfied. It formed part of the statutory structure considered in construing section 147. (see paras [41]-[42]; [107])

1 more judgment, and what each says about section 144, are in the case-law panel in the full Act.

Explanatory note

464.Under this section, contractual and relevant non-contractual terms which try to exclude or limit the operation of any provision in the Act (which includes those dealing with equality of terms) or a provision of secondary legislation made under the Act (for example regulations made under section 81 (ships and hovercraft)) are unenforceable by the person in whose favour the term operates. There are exceptions to this to allow negotiated settlement of claims in the following circumstances:

  • a contract settling a claim in an employment tribunal (including an agreement settling a claim for a breach of an equality clause) that has been negotiated with the help of a conciliation officer or which meets the standards set out in section 147 (meaning of qualifying compromise contract). This includes an arbitration agreement made in accordance with a scheme under section 212A of the Trade Union and Labour Relations (Consolidation) Act 1992 (where the parties agree to submit a dispute to arbitration);

  • a contract settling a county or sheriff court claim.

465.This section replaces similar provisions in previous legislation.

All the explanatory notes for the Act

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F181Words in s. 144(4)(b) substituted (29.7.2013) by Enterprise and Regulatory Reform Act 2013 (c. 24), ss. 23(5), 103(3); S.I. 2013/1648, art. 2(c)