Claimant v Network Rail Infrastructure Limited
Outcome
Individual claims
Tribunal found that giving Ms Taylor a pay rise was not a detriment to the claimant. The claimant did not apply for the lateral move role, so his circumstances were materially different from Ms Taylor's. Mr Rogan's decision to give Ms Taylor a pay rise was based on her performance, abilities, and skills, not race. The claimant's race played no part in his not receiving an increase.
The tribunal found no statistical evidence demonstrating that British Asian employees who applied for lateral moves were less likely to receive pay increases than white employees. The claimant suffered no disadvantage as he did not apply for the lateral move role. Even if there were evidence of group disadvantage, the claimant could not suffer that disadvantage because he chose not to apply.
The tribunal found the grievance procedures were conducted reasonably by Mr Howells, Mr Fisher, and Mr Bastiani. Delays were explained and not unreasonable, caused by both parties and complexity introduced by external involvement of Ms Boot and Ms Modeste. Decisions were based on sufficient evidence and were fair. The respondent established explanations that in no sense constituted victimisation.
While the claimant and Ms Taylor did like work at equal value, the tribunal found the respondent established a material factor defence under section 69 Equality Act 2010. Ms Taylor applied for a lateral move, was successful, and Mr Rogan exercised discretion within policy to increase her pay based on her performance, ability, skill, and experience. This factor did not involve treating the claimant less favourably because of sex. The claimant failed to establish particular disadvantage to men.
Facts
Mr Ahluwalia, a Senior Finance Business Partner of British Asian heritage, brought claims of race discrimination, sex discrimination (equal pay), and victimisation against Network Rail. In October 2019, his colleague Ms Paula Taylor successfully applied for a lateral move to a similar Band 3C role and received a pay increase from £51,605 to £56,000, approved by their manager Mr Rogan based on her performance, abilities, and skills. The claimant, paid £51,156, did not apply for any role but argued he should have received a similar increase based on his experience and qualifications. He raised a grievance in May 2020 which led to a protracted process involving multiple appeal officers and external reviewers, concluding in June 2023 with partial upholds on process issues but not on pay.
Decision
The tribunal dismissed all claims. The direct race discrimination claim failed because giving Ms Taylor a pay rise when she applied for and secured a lateral move was not a detriment to the claimant who chose not to apply. The indirect race discrimination claim failed due to lack of statistical evidence of group disadvantage, and because the claimant suffered no disadvantage from not applying. The victimisation claims failed as the grievance procedures were conducted reasonably despite delays. The equal pay claim failed because the respondent established a material factor defence: Ms Taylor's pay rise resulted from her lateral move application and Mr Rogan's assessment of her performance within policy, not sex discrimination.
Practical note
An employer can defend an equal pay claim where a pay differential arises from the proper exercise of managerial discretion under a transparent pay policy following a lateral move, provided the decision is based on legitimate factors such as performance and ability and there is no statistical evidence of group disadvantage by sex or race.
Legal authorities cited
Statutes
Case details
- Case number
- 2206454/2022
- Decision date
- 18 June 2024
- Hearing type
- full merits
- Hearing days
- 8
- Classification
- contested
Respondent
- Sector
- transport
- Represented
- Yes
- Rep type
- barrister
Employment details
- Role
- Senior Finance Business Partner
- Salary band
- £50,000–£60,000
Claimant representation
- Represented
- Yes
- Rep type
- barrister