Claimant v Single Source Regulations Office
Outcome
Individual claims
The tribunal found that the respondent's letters of 6 March 2024 did not constitute an express dismissal. They were offers subject to contract which the claimant could accept or reject, and left open the opportunity for further consultation. The letters could not reasonably be interpreted as imposing new terms. No fundamental breach of the implied term of trust and confidence occurred as the respondent was merely seeking to negotiate revised terms and warning of potential termination on notice (which was a contractual right). The claimant was not expressly or constructively dismissed.
The tribunal found that the respondent seeking to agree revised terms (increasing hours from 0.8 FTE to 1.0 FTE without reducing pay) was not capable of amounting to a breach of the implied term of trust and confidence. The respondent's conduct was aimed at maintaining the relationship and respected the claimant's right to accept or reject proposals. The claimant refused to negotiate at all. The warning that the respondent might exercise its contractual right to dismiss on notice was not a breach of contract.
The tribunal found that the regrading exercise did put employees aged 50+ at particular disadvantage (23% of those 50+ negatively affected vs 12% of under 50s). However, the respondent established the PCP was a proportionate means of achieving the legitimate aims of ensuring fair, non-discriminatory pay based on objective job evaluation, managing equal pay risk, and ensuring value for money. The process was properly conducted, included two years' pay protection, consultation, independent expert review, appeal rights, and all affected employees except the claimant agreed revised terms. The claimant offered no alternative other than maintaining the status quo indefinitely.
Facts
The claimant was Director of Corporate Resources at a specialist public body regulator, working 0.8 FTE on over £122,000 FTE. The respondent commissioned an independent review (Beamans) of its pay and grading structure to address equal pay risks and ensure fairness. The review resulted in regrading and some employees' salaries exceeding new band maxima. The claimant was regraded from Grade 1 to Band 1, but a new Band 0 was created above him. The respondent proposed increasing his hours to 1.0 FTE without reducing pay. The claimant refused to negotiate and resigned on 7 March 2024, claiming constructive dismissal and indirect age discrimination.
Decision
The tribunal dismissed both claims. The March 2024 letters were not a dismissal but offers subject to contract with scope for negotiation. Seeking to negotiate revised terms was not a breach of the implied term of trust and confidence. Although employees aged 50+ were disproportionately disadvantaged by the regrading (23% vs 12%), this was objectively justified as a proportionate means of achieving legitimate aims of fair pay, managing equal pay risk, and value for money. The process was thorough, included protections, and all affected staff except the claimant agreed terms.
Practical note
Employers conducting pay reviews that disadvantage a protected group can defend indirect discrimination claims if the process is objectively justified, independently conducted, includes consultation and protections, and addresses genuine equal pay or fairness concerns—even if some employees refuse to engage.
Legal authorities cited
Statutes
Case details
- Case number
- 6006348/2024
- Decision date
- 6 October 2025
- Hearing type
- full merits
- Hearing days
- 4
- Classification
- contested
Respondent
- Sector
- public sector
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Director of Corporate Resources
- Salary band
- £100,000+
- Service
- 5 years
Claimant representation
- Represented
- Yes
- Rep type
- barrister