Claimant v Flixmedia Ltd
Outcome
Individual claims
The respondent unilaterally changed the claimant's job title from Product Manager to Junior Product Manager, effective from September 2022, characterising her April 2021 promotion as a 'mistake'. This change to a contractual term was sufficiently serious to constitute a breach of the implied term of trust and confidence, effectively demoting her as part of a process ostensibly designed to increase her salary, and the claimant resigned promptly in response.
The tribunal found the claimant's work and her comparator's (Liam Garvin) were broadly similar and that differences in their work were not of practical importance. However, the respondent successfully established a material factor defence: the genuine need to recruit someone with specific experience, knowledge of data products, and market research background justified the pay difference. The tribunal held that once the employer's reason was genuine and causative, it need not be objectively warranted in all respects.
The respondent failed to discharge the burden of proving that the decision not to invite the claimant to the quarterly roadmap meeting on 3 August 2022 was unconnected to her protected act (raising a grievance about equal pay). Evidence indicated that the claimant's attempt to 'level' herself with her comparator influenced the decision to exclude her from a meeting she would previously have attended.
The claimant withdrew her claims of direct and indirect sex discrimination at the hearing.
The claimant withdrew her claims of direct and indirect sex discrimination at the hearing.
The claimant withdrew her claims of discrimination because of race at the hearing.
The claimant withdrew her claims of discrimination because of religious beliefs at the hearing.
Facts
The claimant was employed by Flixmedia as Project Manager from 2016 and promoted to Product Manager in April 2021 on £45,000. The respondent recruited a male comparator (Liam Garvin) as Product Manager in October 2021 on £70,000. In February 2022 the claimant discovered this pay gap and requested a pay rise. She raised a formal equal pay grievance in June 2022. The respondent subsequently claimed her April 2021 promotion title had been a 'mistake' and that she should have been designated Junior Product Manager. She was excluded from a quarterly roadmap meeting in August 2022. After a Matrix assessment in September 2022 confirmed her title as Junior Product Manager, she resigned, alleging constructive dismissal.
Decision
The tribunal upheld the claimant's constructive unfair dismissal claim, finding that the unilateral change of her job title from Product Manager to Junior Product Manager constituted a serious breach of the implied term of trust and confidence. The tribunal also upheld one victimisation claim relating to her exclusion from the August 2022 meeting. The equal pay claim failed because the respondent established a genuine material factor defence based on the comparator's greater experience and specialist knowledge. Other discrimination claims were withdrawn.
Practical note
An employer cannot unilaterally demote an employee or change their job title, even as part of a benchmarking or pay review process, without risking a constructive dismissal claim where the change is sufficiently serious to damage trust and confidence.
Award breakdown
Vento band: lower
Award equivalent: 56.0 weeks' gross pay
Legal authorities cited
Statutes
Case details
- Case number
- 2207626/2022
- Decision date
- 23 February 2024
- Hearing type
- full merits
- Hearing days
- 4
- Classification
- contested
Respondent
- Name
- Flixmedia Ltd
- Sector
- technology
- Represented
- Yes
- Rep type
- lay rep
Employment details
- Role
- Product Manager
- Salary band
- £40,000–£50,000
- Service
- 7 years
Claimant representation
- Represented
- Yes
- Rep type
- barrister