The Employment Appeal Tribunal (EAT) upheld a decision that a cap on a payment for voluntary redundancy was unfavourable treatment within s.15 Equality Act 2010. The cap was to reflect early receipt of a pension due to disability.
In Chief Constable of Gwent Police v Parsons (bailii.org) the two claimant police officers had ‘H1 certificates’ entitling them to immediate payment of ‘deferred pension’ on leaving the force. They left voluntarily under a ‘voluntary exit scheme’, similar to a redundancy scheme. This involved payment of a compensation lump sum which under the police regulations (subject to discretion) was up to 21 months pay. However the employer capped it at six months because they would immediately receive a pension.
The EAT upheld the employment tribunal decision that this was ‘unfavourable treatment’ within s.15 EqA, despite the Supreme Court decision in Williams v Trustees of Swansea University Pension & Assurance Scheme. The relevant treatment there was the award of a pension, whereas here it was the cap on a payment which would otherwise be substantially larger.
The cap was because of the H1 certificates, which arose in consequence of the claimants’ disabilities. The police had not shown justification for the cap, so there was a breach of s.15 EqA.