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Pay protection can be a reasonable adjustment

02 September 2016 #Employment


Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.

The EAT has recently held that protecting a disabled employee’s pay following his move to a lower paid role was a reasonable adjustment.

In G4S Cash Solutions (UK) Ltd v Powell, the employer had enforced a 10% pay reduction (£207 per month gross) when a disabled employee had moved to a lower skilled role.  The EAT said that it could see ‘no reason in principle’ why the legislation should be read as excluding any requirement upon an employer to protect an employee’s pay in conjunction with other measures to counter the employee’s disadvantage through disability. It said that ultimately, the question will always be whether it is reasonable for the employer to take that step. 

However, it gave some hope to employer’s faced with costly pay protection arrangements by stating that it did not expect that it would be an “everyday event” but simply that there may be cases where it is reasonable as part of a package of reasonable adjustments to get an employee back to work or keep an employee in work. 

This case demonstrates that employers should be cautious about dismissing an adjustment as unreasonable based on cost alone.  Particularly for larger employers, this is likely to be challenged.   

For factsheets, letters, policies and checklists on discrimination please visit employmentbuddy.com.

For further information or support with reasonable adjustments please contact our employment lawyers on employment@clarkslegal.com.    

For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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