We have your recruiting solution
Employment News
Unmonitored Bonus Incentive Schemes a "Sham".

FACTS The claimants were employed by Hartlepool Borough Council in a variety of roles, including minibus driver, school escort, kitchen staff, cleaners and leisure workers. The claimants' roles did not attract any type of bonus, with the exception of the kitchen staff, who received a bonus as a result of previous litigation.

Between them, the claimants compared their roles with other roles at the council, namely trade supervisor, joiner, electrician, painter, driver, labourer, gardener, road sweeper and refuse driver.

As a result of negotiations with trade unions in the 1970s, these roles, which were primarily undertaken by men, attracted incentive bonuses. The claimants brought equal pay claims, arguing that they were performing work of equal value and/or work rated equivalent to their male comparators.

The council argued that the incentive bonus schemes were performance related and in place to improve productivity. It claimed the difference in treatment was due to a genuine material factor which was not the difference in sex.

DECISION The Employment Tribunal found that the council's incentive bonus schemes were a sham. It held that the reason for the introduction of the schemes disappeared years ago, and they could no longer be held to constitute an incentive.

There was no proper monitoring of the schemes and any reviews of performance that did take place were only done in response to new systems or new technology. Performance was not measured on any basis that would improve the employees' productivity, but instead was tailored to work already done. The reason for the schemes was "tainted by sex", said the tribunal, and the claimants' claims were upheld.

The council appealed, arguing that the tribunal should not have taken into account its absence of proper monitoring as to the continued effect of the schemes. The council claimed that if it thought the schemes were achieving their objectives, then that should be enough.

The Employment Appeal Tribunal (EAT) held that the tribunal had been entitled to consider the absence of proper monitoring. The correct question to ask was: "Were the schemes intended to and do they in fact achieve productivity improvements?"

The tribunal needed to establish whether the schemes were genuine and achieved their purpose.

The EAT held that the reason for the schemes' introduction in the 1970s could not be relied upon to provide a genuine reason for the continuation of the schemes in 2004, which was when these claims were first brought, and dismissed the appeal.

IMPLICATIONS This case emphasises the importance of monitoring and properly regulating any type of pay scheme, including pay rises and overtime pay as well as bonus schemes.

It will not be enough to show that a scheme creating a difference in treatment was justified at the time of implementation - a scheme that does not start out as discriminatory could become so in the future.

Contact Us

Established in September 2007 as a limited company specialising in outsourced human resource management (HRM), recruitment and associated training. We pride ourselves on delivering a professional and dynamic service to our clients and by sharing our vast experience and knowledge to ensure their end goals are achieved. The Connect Team are driven through dedication, commitment and hard work, and can assure you of a confidential service at all times.

Chris Watson a Director has held many senior management positions and is a Fellow of the Institute of the Motor Industry also holding a Diploma in Performance Coaching. Wendy Ward also a Director holds a Certificate in Personnel Practice (CIPD) and a Certificate in management with the Chartered Institute of Management. Combined this gives Connect HR & Recruitment the ability to create innovative solutions to everyday problems that can make a major impact on achieving results through people in any business or organisation.  

Connect HR & Recruitment Ltd

Registered in England

Company Registration Number: 6378757

Registered Address: 64 Duke Street, Darlington, Co. Durham, DL3 7AN

Testimonials:

As a company we have used Connect HR on a number of occassions to assist with our recruitment needs. There are a number of reasons why we favour Connect against some of their competitors, these include their eagerness to understand our real requirements and a desire to get our business so they can search for the right candidates that will compliment this. Chris Watson also takes the time out to personally visit us and spend quality time discussing not just our recruitment needs but also how the people he has already placed with us are progressing, you get the feeling that he has a genuine interest and cares about our success. I believe the fact that while Connect are a relatively small recruitment company you get all the big company feel but with a much more attentive service, attention to detail and a great degree of professionalism, I will continue to use Connect for my recruitment needs for many years to come.

Steve Eley, Regional Director, Evans Halshaw.

Connect HR & Recruitment Ltd support Evans Easyspace with Human Resource Management services. We have always found them available when we require assistance, they reply to messages very promptly and have given us solutions to situations that as an organisation which employs over 50 staff you occasionally find yourself in. They have made recommendations for changes as employment legislation moves on and are assisting with the implementation of a performance management system. I would have no hesitation in recommending them to any business or organisation.

Bradley Cooper, Finance Director, Evans Easyspace.

Having had experience of recruitment companies in the past I found you a breath of fresh air. Everything was handled with the minimum of fuss and the communication between the three parties was handled extremely efficiently. The quality of the candidate you put forward was outstanding and I can already see he will be a great asset to the company. I will not hesitate to use you again or recommend your services, many thanks.

Richard Blair, General Manager & Director, The Arundale Group.

We have been dealing with Connect HR & Recruitment Ltd for six months now and we are extremely pleased with the service we receive from them. The response times are excellent and the service is always professional and polite. We have full confidence in Connect to handle all of our HR, and the relationship has grown in such a way that we see them as a vital part of our team. I would be more than happy to recommend Connect to any other business or organisation who require HR or recruitment support.  

Jez Chamberlain, Owner, Mapleleaf Domestic Appliance Engineers.

I found Connect HR & Recruitment Ltd very helpful, friendly and supportive and Sandy Beaches will definitley be using the HR services in the future should there be a need. The work was done very quickly, professionally and all requests dealt with straight away. I would not hesitate to recommend them to anyone in the future.

Andrea Northgraves, Manageress, Sandybeaches Caravan Park

Having used a number of different recruitment companies in the past I found Connect HR & Recruitment Ltd to be the most supportive, helpful and professional company to deal with. Their process was fast and efficient and the way that the candidiate summary was compiled made it straight forward to be able to progress through the various recruitment stages. I have already recommended Connect HR & Recruitment Ltd to our retailer associates and will continue to use their services in the future.

James Oliver, Retail Operator, Drive Motor Retail Ltd

We are listed on the North East England Service Provider Register. Funding may be available
Stand out from the crowd

New ACAS Code of Practice for Disciplinary & Grievance Procedures

The employment act 2008 becomes law which abolishes the 2004 rules of compulsory statuatory dispute resolution procedures. From April 2009 there will be an ACAS code of practice designed to help settle employment disputes outside of court. If not observed and the matter goes before an employment tribunal, the tribunal in most cases will have descretion to increase or decrease monetary awards by up to 25%.

ACAS Code of Practice

Employment Act 2008