Skills Development Scotland Co Ltd v Buchanan & Anor (Equal Pay Act : Material factor defence and justification) [2011] UKEAT 0042_10_2505 (25 May 2011)

Skills Development Scotland Co Ltd v Buchanan & Anor (Equal Pay Act : Material factor defence and justification) [2011] UKEAT 0042_10_2505 (25 May 2011)

The pay disparity was caused by TUPE transfer and the comparator's contract, which was gender neutral and remained operative. The employer's standard pay practices did not break the causal chain. No evidence of direct or indirect sex discrimination. The Tribunal erred in law by failing to recognise the genuine material factor defence and by focusing on employer inactivity rather than causation.

Citation
[2011] UKEAT 0042_10_2505
Parties
Appellant Advocate: Mr T Linden; Respondent Advocate: Ms A Jones; Employer: Scottish Enterprise; Comparator: Mr John Sweeney; Claimant: First Claimant; Claimant: Second Claimant
Jurisdiction
United Kingdom
Judgment Date
25 May 2011
Procedural Posture
Equal Pay Act Appeal / Appeal From Employment Tribunal
Outcome
Appeal upheld, claims dismissed
Legal Topics
Equal Pay, Material Factor Defence, TUPE Transfers, Sex Discrimination
Employment Law Equality Law Equal Pay Material Factor Defence TUPE Transfers Sex Discrimination

Case Brief

Summary, issues, holding and outcome

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Parties

Mr T Linden

Appellant Advocate

Ms A Jones

Respondent Advocate

Scottish Enterprise

Employer

Mr John Sweeney

Comparator

First Claimant

Claimant

Second Claimant

Claimant

Procedural Posture

Equal Pay Act Appeal / Appeal From Employment Tribunal

Legal Issues

  1. 1 Whether the pay disparity between claimants and comparator was genuinely due to a material factor not related to sex under s.1(3) Equal Pay Act 1970
  2. 2 Whether the causal chain between TUPE and pay disparity was broken
  3. 3 Whether the employer's explanation was tainted by sex

Ratio Decidendi

The pay disparity was caused by TUPE transfer and the comparator's contract, which was gender neutral and remained operative. The employer's standard pay practices did not break the causal chain. No evidence of direct or indirect sex discrimination. The Tribunal erred in law by failing to recognise the genuine material factor defence and by focusing on employer inactivity rather than causation.

Court Disposition

Appeal upheld, claims dismissed

Orders

  • Appeal allowed
  • Claimants' claims dismissed