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Individuals are protected from discrimination based on race, colour, nationality, ethnicity and national origin by The Race Relations Act 1976. This Act is applicable in England, Scotland and Wales. Though The Race Relations Act 1976 is not applicable in Northern Ireland, the country does have similar legislation of its own. It is not only employees that are covered by the Act. Self-employed persons, job applicants and contract workers are all protected by The Race Relations Act 1976. The Act protects this entire group of individuals from race discrimination and harassment and also victimisation in the context of employment. All stages and aspects of employment are included within the reach of the Act. The recruitment and application processes are covered, which includes an employer refusing to hire a particular individual because of race or offering less favourable terms of employment. Various aspects of the employment itself, such as promotions and benefits, are also covered. Dismissing an employee or refusing to renew a fixed-term contract because of race is another form of race discrimination under the Race Relations Act.

With regards to claims of race discrimination, it does not matter whether or not the individual committing the acts intended to offend. The measuring stick of race discrimination is whether or not the employee on the receiving end of the behaviour was offended or felt harmed, not whether the offender meant to cause the harm. The majority of the time race discrimination consists of a series of inappropriate or offensive acts rather than a single incident. In some cases, however, a single incident can be so grievous that it is grounds for a claim of race discrimination on its own. In either case, the claimant will bring an action to the Employment Tribunal under The Race Relations Act 1976. There are both direct and indirect forms of race discrimination. Direct race discrimination occurs in a situation where an individual is treated unfavourably when compared to those around him because of his race. Indirect racial discrimination is more subtle, and the employer may try to disguise it by putting requirements in place that will heavily disadvantage one racial group over another.

In addition to race discrimination, the employee may also have a claim for race victimisation. Race victimisation occurs when an employee suffers retribution for his participation in an action involving a violation of the Race Relations Act. One type of race victimisation is when a person is treated less favourably than those around him because it is known than he intends to bring a claim under the Act. Another form of race victimisation occurs when the individual is treated unfavourably because he is providing evidence in a race discrimination case.

Compensation for successful claims of race discrimination is awarded by the Employment Tribunal. In order to receive compensation, the employee begins by making an application to the Tribunal. Note that the Tribunal has the discretion to award aggravated damages in cases where it finds the behaviour exceptionally abhorrent. There is no statutory cap on the amount of damages a claimant can receive in race discrimination cases. As a result, awards for damages in race discrimination cases are typically quite substantial.