He warned that while disabled people now have legal protection against discriminating employers it can still be extremely difficult for them to find work in the first place.
The position is improving: 46% of people with disabilities are now employed, compared with only 38% seven years ago. But compared to non-disabled people, three quarters of whom are in work, there is still a long way to go.
In addition, wages are lower for the disabled, and they are often passed over for promotion or training, said O'Grady.
He warned:
"New disability legislation has put the onus on local councils and health authorities who now have a duty to do all they can to promote equality towards disabled people and prevent harassment and discrimination whenever it occurs. If the same legal duty were also to apply to private sector firms, discriminating bosses would find themselves with nowhere to hide."
Work and Pensions Minister Anne McGuire added:
"Britain's 10 million disabled people have had to endure a legacy of exclusion, inside and outside of the workplace. We have brought in legislation to help end this, but legislation can only go so far. Employers need to wake up and recognise talent – not disability – when they see it."
The comments come in the wake of a drive by the DRC to destroy the myths surrounding disabled workers.
Supported by the Federation of Small Businesses, the DRC is focusing on debunking five common myths:
"Smart businesses realise that providing support to workers makes good business sense," said Bert Massie, Chairman of the DRC. "It also makes sense, cost wise to make small improvements that have minimal outlay rather than incur the increased expense of redundancy and recruitment."
A survey of 1,000 small employers carried out by the DRC found that 85% of respondents would be flexible about making changes to working conditions for employees with the right skills and enthusiasm.