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.

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 legal advice. Please refer to the full General Notices on our website.

Author profile

Monica Atwal

Managing Partner

View profile

+44 118 960 4605

About this article

Read, listen and watch our latest insights

art
  • 20 May 2026
  • Immigration

AI vs Home Office approved Translations – why migrants are paying the price

AI is transforming almost every professional sector. Law firms now use AI-assisted drafting, businesses rely on automated translation software, and governments increasingly use digital systems for decision-making.

art
  • 20 May 2026
  • Employment

Trade Unions Right of Access from October – What you need to know

Under the Employment Rights Act 2025, independent Trade Unions (i.e. those with a certificate of independence) will have a right to access workplaces (physically and digitally) from October 2026.

art
  • 19 May 2026
  • Privacy and Data Protection

New Complaints Procedure for Data Protection Coming in June – Are You Ready?

The Data (Use and Access) Act 2025 (the “Act”) received Royal Assent last year and introduces slight reforms to the UK’s data protection regime.

art
  • 18 May 2026
  • Commercial Real Estate

Land Registry title to property mines and minerals

Depending on the location of the property, it is quite common in parts of England and Wales for a property title to contain a reference to mines and minerals, and for these to be excluded from the surface owner’s ownership in favour of another party.

art
  • 13 May 2026
  • Employment

10 top tips for negotiating a redundancy settlement agreement, for employers and employees

Redundancies are on the rise, resulting in increased use of settlement agreements. We’ve compiled our top 10 tips for drafting and negotiating these agreements to support both employers and employees through this challenging process.

art
  • 12 May 2026
  • Immigration

Supplementary Employment: When is it Allowed under UK Immigration Rules?

This article provides a guidance to understanding the rules on supplementary employment in the UK.