Search

How can we help?

Icon

Pension scheme did not discriminate workers

In Dr Parker v MDU Services Ltd, the claimant alleged that her employer’s pension scheme indirectly discriminated against workers who had a combination of full and part-time service.

The claimant worked as a full-time employee with MDU until March 1991.  Following the birth of her daughter, the claimant commenced working on a part-time basis and continued to do so until her retirement in January 2015.  The scheme calculated that she had worked 21 full-time equivalent years out of the possible 28 full-time years she had been in service and a reduction was therefore applied to her pension.

Amongst other matters, she claimed that MDU had breached the sex equality rule under section 67 of the Equality Act 2010.  In bringing this claim, the Tribunal identified the correct comparator as being someone who was the same age as the claimant, working full-time and who had commenced employment at the same time as the claimant.  It found that the comparator would have accrued pension at the same rate as the claimant and that she was not, in its view, being paid less by way of pension entitlement than a full-time worker.  The Claimant appealed, arguing that the choice of comparator was wrong.  In doing so, she sought to rely on a man of the same age retiring on the same date as her with 21 years’ full-time service.

In bringing this claim, the Tribunal identified the correct comparator as being someone who was the same age as the claimant, working full-time and who had commenced employment at the same time as the claimant.

The EAT did not find that the Tribunal had made an error in its choice of comparator and rejected the claimant’s choice on the basis that it would fail to give effect to an important element of the scheme (i.e. that the accrual rate depended on the age at which the member joined).

As part of its Judgment, the EAT followed an earlier Supreme Court decision and found that an employer is able to rely on a later justification of a potentially discriminatory practice – even if it was not in its mind when it adopted the practice in the first place.

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

About this article

Read, listen and watch our latest insights

Pub
  • 04 December 2025
  • Immigration

UK Immigration: What to expect in 2026 for employers

Join our UK immigration specialists, Ruth Karimatsenga and Monica Mastropasqua, as they explore the key updates and how they affect your business in 2026.

Pub
  • 04 December 2025
  • Corporate and M&A

Autumn Budget 2025 Breakdown: Key takeaways for business buyers and sellers

Join Stuart Mullins and Nicky Goringe Larkin as they delve into the key updates from the Chancellor’s announcement, with a focus on what matters most for businesses looking to buy and sell.

art
  • 03 December 2025
  • Corporate and M&A

Why is carrying out a legal Due Diligence investigation necessary during an proposed acquisition?

Merging with or acquiring another company is a high-stakes endeavour. The purpose, process and common areas of investigation during a M&A transaction.

art
  • 02 December 2025
  • Employment

All I Want for Christmas… Is No Tribunal Claims!

Before the festivities begin, it is worth unwrapping the key risks and understanding how employers can protect their staff, their reputation and their sanity, while still delivering a thoroughly enjoyable evening.

art
  • 01 December 2025
  • Immigration

Government consultation on extending settlement requirements: What employers and migrants need to know

This article summarises the key proposals , groups who will and will not be affected by the extending settlement requirements, and the potential impact for employers, workers and families.

art
  • 28 November 2025
  • Commercial Real Estate

Auction Sales: Key Things to Consider

Buying or selling a property at auction can offer both buyers and sellers unique advantages, but it also comes with potential risks.