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.

Motor Trade Jobs

Our experience with placements in Motor Trade Jobs is extensive. To register your CV with us go to "Submit CV". We have contacts for Motor Trade Jobs across the UK, the Middle East and Ireland. Many of our assignments are confidential and therefore are not shown on our Motor Trade Jobs page. Ensure you register with us on line by sending us your CV. If you require assistance with your CV please contact us on 01430-473053 or e-mail us at admin@connect-hr.com.

TitleIndustryLocationSalary
TechnicianMotor Trade JobsEast Yorkshire£18,000 -21,000
Details: Our client is a family owned business that was founded in 1967 and has grown from its small beginnings to the large, reputable company that it is today, built on the reputation of value for money and...   more details
Commercial Vehicle Sales ExecutiveMotor Trade JobsYorkshire£35,000 OTE
Details: Our client requires a fully experienced Van Sales Executive with a vast array of commercial vehicle knowledge in products, accessories, weight distruibution, finance, insurance, leasing and contract...   more details
Sales ExecutiveMotor Trade JobsHull£30,000 OTE
Details: Our client is a small family owned business with a niche franchise that prides themselves on customer satisfaction, high standards of excellence and a culture of respect for all staff. This is a...   more details

View more jobs in the Motor Trade Jobs category

Finance Jobs

At Finance Jobs from Connect HR & Recruitment Ltd you can register your CV free, click here. This will also register you for our candidate news letter which includes Finance Jobs as well as several other industries we recruit for.
TitleIndustryLocationSalary
Accounts AssistantFinance JobsLeeds£15,500
Details: Our client is the UK's leading provider of new quality small business units catering for the small to medium sized enterprise (SME) market which includes offices, workshops and self storage. Formed in...   more details

View more jobs in the Finance Jobs category

Leisure Jobs

At leisure jobs from Connect HR & Recruitment Ltd you can register your CV free, click here. This will also register you for our candidate news letter which includes leisure jobs as well as several other industries we recruit for.
TitleIndustryLocationSalary
Sales ExecutiveLeisure JobsWest Yorkshire£25,000 OTE
Details: Our client is the largest independent retailer of caravans, motor homes and outdoor leisure equipment in the UK. This is a unique opportunity to join a progressive company as a Sales Executive selling...   more details

View more jobs in the Leisure Jobs category

Property Jobs

At property jobs from Connect HR & Recruitment Ltd you can register your CV free, click here. This will also register you for our candidate news letter which includes property jobs as well as several other industries we recruit for.
TitleIndustryLocationSalary
Accounts AssistantProperty JobsLeeds£15,500
Details: Our client is the UK's leading provider of new quality small business units catering for the small to medium sized enterprise (SME) market which includes offices, workshops and self storage. Formed in...   more details
Property Manager / Centre ManagerProperty JobsAll Regions£18,000 to 20,000
Details: Our client is the UK's leading provider of new quality small business units catering for the small to medium sized enterprise (SME) market which includes offices, workshops and self storage. Formed in...   more details

View more jobs in the Property Jobs category

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