Search

How can we help?

Icon

Pay protection can be a reasonable adjustment

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.

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

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.    

About this article

Disclaimer

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

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

art
  • 08 May 2025
  • Employment

Statutory Sick Pay Scheme changes: how can employers prepare for such changes?

The government has recently changed the Statutory Sick Pay provisions; it is anticipated that such changes will ‘help people to stay in work and grow the economy’.

Pub
  • 07 May 2025
  • Corporate and M&A

Thinking of exiting your business? Part 1

In the first part of this three-part series, we explore why planning your exit strategy early can shape the way you build, grow, and eventually sell your business for maximum value. From mindset to strategy, we unpack how thinking about the end from the beginning can lead to smarter decisions and better outcomes.

Pub
  • 07 May 2025
  • Immigration

UK Immigration: Essential update for employers

The UK’s immigration system will see major changes in 2025. Watch our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, as they explore the key updates and how they affect your business.

art
  • 06 May 2025
  • Corporate and M&A

Can a disclosure letter give rise to a misrepresentation claim?

Provided by a seller to a buyer, a disclosure letter is an important element in any business sale or purchase transaction.

art
  • 02 May 2025
  • Employment

Sex, Gender and the Law: What the Supreme Court’s Recent Ruling Means for Employers

The recent UK Supreme Court decision in For Women Scotland Ltd v The Scottish Ministers  UKSC 16 has generated significant attention, but for most employers, we would argue that its practical impact is relatively limited—at least for now.

art
  • 29 April 2025
  • Privacy and Data Protection

Use of Personal Devices at Work: Why a Bring Your Own Device Policy is Essential

We will highlight in this article what changes have been made to the DUAB since the early stages of the Bill.