Economic factors don’t defend unequal pay
April 23rd, 2010
In order to competitively bid in a tender process Newcastle NHS Hospitals Trust decided to cut bonuses for most of its employees. Most of its employees just happened to be female …
The Trust sought to defend its position based on what’s known as the ‘material factor defence’. There was some sympathy with this view from the Court of Appeal but, fortunately, common sense prevailed at the EAT which found the practice to be sexually discriminatory.
If you’re thinking of cutting back on pay and benefits you need to bear in mind whether your actions will affect a particular demographic. If they do, then be aware that successful claims for any form of discrimination carry uncapped financial penalties.
Case ref UKEAT/0069/09/JOJ
