The Claimants were police officers in their 40s who were disabled under Equality Act 2010 and in possession of ‘H1 certificates’ which allowed them immediate access to ‘deferred pension’ on leaving the police.
They left the force under the police ‘voluntary exit scheme’ (analogous to a redundancy scheme) and their ‘compensation lump sums’ were capped at six months’ pay, when they would otherwise have received 21 and 18 months’ respectively, because they were in immediate receipt of ‘deferred pension’.
The Claimants brought successful claims against the Chief Constable on the basis that capping the compensation lump sums was discriminatory under section 15 Equality Act.
On appeal the EAT upheld the decision of the ET on each of the three issues on which the ET had found in favour of the Claimants:
(1) capping the compensation lump sum was clearly ‘unfavourable treatment’; there was no reason to bring into account the ‘deferred pension’ which they also received on leaving the force in considering the relevant treatment; and Williams v Trustees of Swansea University Pension and Assurance Scheme [2018] UKSC 65 was distinguishable in that the relevant treatment in that case was classified as ‘the award of a pension’ which could not be said to be unfavourable, as opposed to ‘capping the compensation lump sum’, which clearly could;
(2) possession of H1 certificates (which was the cause of the immediate receipt of deferred pension and therefore the decision to cap the compensation lump sum) was clearly ‘something arising in consequence of [their] disability’ since the certificates were based on exactly the same impairments as the (admitted) Equality Act disabilities;
(3) on the material put before the ET by the Chief Constable he had not established that the unfavourable treatment was justified under section 15(1)(b) of Equality Act; the financial material did not show that the Claimants would receive more from the full compensation lump sum than they would receive in earnings by remaining with the police to retirement age as in Kraft Foods UK Ltd v Hastie [2010] ICR 1355; the mere fact that they were in immediate receipt of the ‘deferred pension’ was not sufficient to establish that the compensation lump sum amounted to a windfall and the Chief Constable had not advanced or provided the material necessary to support any other case (see Loxley v BAE Land Systems Munitions and Ordinance Ltd [2008] ICR 1348).
Citations:
[2020] UKEAT 0143 – 18 – 2502
Links:
Jurisdiction:
England and Wales
Employment
Updated: 05 November 2022; Ref: scu.649246