Human resources at a click

Pay protection can be a reasonable adjustment

Businessman working on laptop computer with electronics document icons

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.

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

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.    

Disclaimer This information is for guidance purposes only and should not be regarded as a substitute for taking professional and legal advice. Please refer to the full General Notices on our website.
Monica Atwal
Monica Atwal
Managing Partner

Related Articles

The Employment Rights Bill is a draft law set to significantly expand workers’ rights. It is currently still making its...

In October 2024, a new duty was placed on employers to take reasonable steps to prevent sexual harassment in the...

The short answer is yes but it will be much more difficult for employers following the introduction of the Employment...

Related Resources

HR Legislation and Case Law Update

Quick reference guide to upcoming key employment law cases and legislation. We keep track of the latest employment law changes,...

Study leave agreement letter

Agreement template letter regarding study leave for employee. Preview of letter Dear [Name of employee] STUDY LEAVE I am writing...

Study – training course agreement letter

Training course agreement for employee. Preview of letter Dear [name of employee] [STUDY/TRAINING COURSE] AGREEMENT I am writing to confirm...

Human resources at a click