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Is my employer allowed to specify how I dress at work?
Yes, your employer may (within limits) be able to specify how you dress at work.
Your contract might state that you need to dress 'smartly', rather than specifying particular garments. As you might well have conflicting ideas of what counts as 'smart', you should ask your employer for clarification.
Your employer should try to avoid including elements in a dress code which would unjustifiably conflict with someone's religion or religious beliefs. For example, a dress code forbidding headwear would discriminate against male Sikhs who must wear a turban. Likewise, a dress code prohibiting visible crosses would discriminate against Christian workers.
The prohibition against indirect religious discrimination at work is not absolute. If an employer has good reason for making rules about dress and applies them proportionately, this is unlikely to be religious discrimination. For example, an NHS Trust is likely to be allowed to ban the wearing of a visible cross on a chain by a nurse engaged in patient care, for reasons of health and safety, but not by a desk-bound receptionist.