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05 November 2009

Service related pay schemes in doubt

A ruling issued by the Court of Appeal has cast a shadow over the service related pay schemes in force throughout the UK. The case, which involved a Health & Safety Executive worker called Christine Wilson, centred on claims that the her pay agreement was unfair because it was linked to length of service. At the time there were three other male colleagues on the same pay scale who were paid more than Ms Wilson for doing the same work due to their increased length of service.

 

The landmark ruling may force companies to scrap the schemes on the grounds that they are discriminating women. As female workers often take time out of employment to have a family their continuity of service is commonly disrupted. The Equality and Human Rights Commission (EHRC) intervened in the case supporting the view that this was unfair to women. Managers must now justify such schemes if they are thought to be unreasonable. The EHRC hopes that women will not be discouraged from having families now and is holding a consultation on how to develop a consistent way to measure the gender pay difference.
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