New Legal Ruling on ‘Women’: What SME Employers Need to Know

A recent UK Supreme Court ruling has clarified that the term “woman” under the Equality Act 2010 refers exclusively to biological females. In response, the Chartered Institute of Personnel and Development (CIPD) has released updated guidance to help employers—particularly small and medium-sized businesses—understand and apply the new legal standard.
Here’s what this means for SMEs, and how you can stay compliant while continuing to support an inclusive workplace.
What Has Changed?
The ruling came after a legal challenge in Scotland, where guidance had included transgender women (those with Gender Recognition Certificates) within the statutory definition of “woman.” The Supreme Court ruled that, in the context of the Equality Act, “sex” and “woman” refer to biological categories only—not gender identity.
For SME employers, this ruling clarifies who may be included in certain sex-based workplace provisions such as single-sex spaces, roles, or support schemes.
Key Takeaways for SMEs
✅ Review Any Policies That Reference “Sex” or “Gender”
If your business has:
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Women-only support programmes or networking groups
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Female-only job roles or internships (positive action schemes)
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Single-sex changing rooms or restrooms
…it’s time to review these policies to ensure they are legally accurate and clearly defined using biological sex where appropriate.
✅ Stay Inclusive—Even While Complying
This ruling doesn’t remove protections for transgender people under the Equality Act. It’s still unlawful to discriminate against someone for undergoing or proposing to undergo gender reassignment.
That means SME leaders should:
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Consider offering gender-neutral toilet or changing facilities
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Avoid language that may unintentionally exclude trans or non-binary staff
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Ensure employee handbooks are updated to reflect legal changes and a culture of respect
✅ Communicate Clearly with Your Team
Small businesses thrive on clear communication and trust. Let your team know if policies are being updated, and explain why. Keep things transparent and inclusive—this builds confidence, not confusion.
✅ Train Your Managers
Line managers often handle sensitive conversations. Make sure they understand the changes and are equipped to respond appropriately to staff questions or concerns.
Why This Matters
For SMEs, the legal stakes are just as high as for big corporations—but with fewer resources, you can’t afford to get caught off guard. Ensuring that your business complies with the updated interpretation of the Equality Act protects you legally and helps you create a workplace where everyone feels respected.
With further guidance expected later this year from the Equality and Human Rights Commission (EHRC), staying informed now will help your business stay ahead of the curve.
Useful Links for SMEs:
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CIPD Guidance – Understanding the Legal Definition of “Sex”:
https://www.cipd.org/uk/views-and-insights/thought-leadership/insight/definition-sex-equality-act -
Case Background – For Women Scotland Ltd v The Scottish Ministers:
https://en.wikipedia.org/wiki/For_Women_Scotland_Ltd_v_The_Scottish_Ministers -
Supreme Court Ruling Coverage (AP News):
https://apnews.com/article/21fcf89b655712351ba2696795d49ece -
Reuters Report on Legal Clarification:
https://www.reuters.com/world/uk/uks-highest-court-rule-definition-woman-under-equality-laws-2025-04-15