Equality Watchdog Faces Discrimination Lawsuit From Pregnant Employee

The government's equality watchdog, set up to combat all forms of prejudice at work, faces a sex discrimination lawsuit this week from a female member of its own staff.

The case is a fresh embarrassment for Trevor Phillips, the chair of the Equality and Human Rights Commission, who is widely expected to be forced to step down when his contract ends in autumn following a string of internal disputes and allegations of financial irregularities. Several of his fellow commissioners have indicated they are likely to stand down if Phillips, who is close to several senior labor politicians, including Lord Mandelson, is reappointed for another term.

The sex discrimination case brought by Brid Johal, an aide to Phillips's political adviser Faz Hakim, is scheduled to be heard at an employment tribunal in south London this week. It is understood her case centers on allegations that she was not told of a promotion that came up while she was on maternity leave and was therefore unfairly treated compared to other staff.

A spokesman for the commission declined to comment in advance of the tribunal case but another source said it was braced for public embarrassment.

Hakim is expected to give evidence on Johal's behalf and the case risks exposing broader questions about the recruitment policies adopted by the commission, which is supposed to police other private and public bodies in rooting out discrimination on the grounds of sex, race, religion, sexuality, age and disability.

"There is something oddly old-fashioned going on in terms of plum jobs at the higher level," added the commission source.

Ministers are due to announce later this month whether Phillips will serve a second term and the controversy over the commission's appointments and staff management are thought to have counted against him.

Phillips faces a report by the National Audit Office (NAO) within the next few weeks which is expected to qualify its accounts, which the Observer recently disclosed they had refused to sign off.

The irregularities identified by the NAO are understood to center on a handful of staff made redundant and paid off when the former race watchdog – the Commission for Racial Equality, which Phillips ran – was wound up, but then rehired by the successor body. Senior figures, including Phillips, are likely to face questioning in parliament over what happened.

Sources close to Phillips, however, said he did not want to quit the commission, adding: "This is a decision for government. But frankly Trevor is doing the job until someone tells him to stop doing it. There is no change as far as we are aware."

Ministers are now understood to be seeking a face-saving exit for Phillips which could see him transferred to another quango. The recent departure of Neil Kinnock from the British Council after his wife, Glenys, was made a minister, opened a possible vacancy but would mean a significant drop in salary for Phillips.