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 Statutory Sick Pay (“SSP”) scheme entitles eligible employees who are absent from work due to incapacity and who meet...

The recent UK Supreme Court decision in For Women Scotland Ltd v The Scottish Ministers [2025] UKSC 16 has generated...

The Employment Rights Bill, introduced in October 2024, aims to restrict the practices of ‘fire and rehire’ and ‘fire and...

Related Resources

Anti corruption and bribery policy

Anti corruption and bribery policy on preventing and prohibiting bribery. Purpose and scope The purpose of this policy is to...

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,...

Pensions auto enrolment factsheet

This factsheet provides an overview of the pensions auto enrolment process. Employers must arrange for all eligible “jobholders” to be...

Human resources at a click