Pay based on service

Case 3: The facts

The Health and Safety Executive had operated a pay system based on incremental increases by service. As a result women HSE inspectors were more likely to receive less pay than male HSE inspectors.

The ruling

The EAT accepted that length of service had a disproportionate impact between male and female staff, because women overall had shorter service. This raised a presumption of indirect sex discrimination. To avoid an equal pay claim the employer had to show that length of service was objectively justified, although there was no requirement that the employer had already established this reason at the time when the length of service criteria was introduced. The EAT did also say that it was not wholly convinced that in every case an employer could find a justification for service pay increments, but there were situations, such as this one, where greater experience did justify additional pay.

* The Health and Safety Executive v Cadman EAT/0947/02