Understanding Post-Termination, Dual, and Age Discrimination under Equality Act 2010, Study notes of Law

An in-depth analysis of three complex issues under the Equality Act 2010: post-termination victimisation, dual discrimination, and age discrimination. The author, Allan Roberts, discusses key cases and legal provisions related to these topics, offering valuable insights for understanding and applying the Equality Act in practice.

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DISCRIMINATION UPDATE PART 2:
TRICKY ISSUES UNDER THE EQUALITY ACT
Allan Roberts, Guildhall Chambers
Introduction
1. With the Equality Act 2010 approaching its second birthday, one would expect to look back and
see a degree of teething problems and perhaps a few appellate authorities on the newer strands
of discrimination. However, the area has proved fertile ground for appellate litigation. A talk on the
Act could cover just about every aspect of its remit, with each section being a discrete talk in
itself.
2. This seminar therefore focuses on three discrete areas:
a) Post-Termination Victimisation;
b) Dual Discrimination; and
c) Age Discrimination.
Post-Termination Victimisation
Introduction
3. Following the introduction of the Equality Act 2010, victimisation has been re-classified from an
act of discrimination to Other Prohibited Conduct”. Consistent with this re-classification, a
comparator is no longer required. This is logical since the cause of action is not about less
favourable treatment but rather consequent treatment. Whilst this may all sound uncontroversial it
has led to a rather unfortunate and seemingly unintended side effect, namely the removal of the
right to bring a claim for post-termination victimisation. A classic example is that of a negative and
reactionary reference. The cause of action flows from the employer writing a reference because
the former employer had done a protected act.
Pre-Equality Act 2010
4. Prior to the Equality Act the various discrimination statutes did not expressly permit claims where
the act post-dated termination. Instead they related the action to the concepts of “employment” or
“employed” and actions by the “employer” all of which necessitated an on-going relationship. The
question of post-termination discrimination first arose before the EAT in Nagarajan v Agnew
[1995] ICR 520 and then the Court of Appeal in Post Office v Adekeye [1997] ICR 110, both
deciding that post-termination discrimination was not actionable.
5. However, in Coote v Granada Hospital Ltd (Case C-185/97) [1999] ICR 100, [1998] IRLR 656 the
European Court of Justice applied the principles of EU law and determined otherwise. Ms Coote
had brought a claim of sex discrimination, alleging her dismissal was because of her pregnancy.
When the Hospital later failed to provide her with an employment reference she bought a further
claim, alleging this was a reaction to her previous claim. The Employment Tribunal dismissed the
case, finding the Sex Discrimination Act 1975 only protected against discrimination during the
employment relationship. The ECJ determined the question by reference to the intended effect of
Article 6 of the Equal Treatment Directive 76/207. This required Member States to provide a
means for pursuing claims where equal treatment had not been afforded. The ECJ concluded this
would be undermined if fear of reprisals - which had no legal redress - led to workers being
deterred from taking action.1 It accordingly rejected the argument that acts post-termination were
outside the scope of the Directive. The matter returned to the EAT (Coote v Granada Hospitality
Ltd (No 2) [1999] ICR 942) where it declined to follow Adekeye. It held that s.6(2) SDA was
capable of being read as embracing a woman “who has been employed by him.”
1 Paragraph 24
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DISCRIMINATION UPDATE PART 2:

TRICKY ISSUES UNDER THE EQUALITY ACT

Allan Roberts, Guildhall Chambers

Introduction

  1. With the Equality Act 2010 approaching its second birthday, one would expect to look back and see a degree of teething problems and perhaps a few appellate authorities on the newer strands of discrimination. However, the area has proved fertile ground for appellate litigation. A talk on the Act could cover just about every aspect of its remit, with each section being a discrete talk in itself.
  2. This seminar therefore focuses on three discrete areas:

a) Post-Termination Victimisation;

b) Dual Discrimination; and

c) Age Discrimination.

Post-Termination Victimisation

Introduction

  1. Following the introduction of the Equality Act 2010, victimisation has been re-classified from an act of discrimination to “ Other Prohibited Conduct ”. Consistent with this re-classification, a comparator is no longer required. This is logical since the cause of action is not about less favourable treatment but rather consequent treatment. Whilst this may all sound uncontroversial it has led to a rather unfortunate and seemingly unintended side effect, namely the removal of the right to bring a claim for post-termination victimisation. A classic example is that of a negative and reactionary reference. The cause of action flows from the employer writing a reference because the former employer had done a protected act.

Pre-Equality Act 2010

  1. Prior to the Equality Act the various discrimination statutes did not expressly permit claims where the act post-dated termination. Instead they related the action to the concepts of “employment” or “employed” and actions by the “employer” all of which necessitated an on-going relationship. The question of post-termination discrimination first arose before the EAT in Nagarajan v Agnew [1995] ICR 520 and then the Court of Appeal in Post Office v Adekeye [1997] ICR 110 , both deciding that post-termination discrimination was not actionable.
  2. However, in Coote v Granada Hospital Ltd (Case C-185/97) [1999] ICR 100, [1998] IRLR 656 the European Court of Justice applied the principles of EU law and determined otherwise. Ms Coote had brought a claim of sex discrimination, alleging her dismissal was because of her pregnancy. When the Hospital later failed to provide her with an employment reference she bought a further claim, alleging this was a reaction to her previous claim. The Employment Tribunal dismissed the case, finding the Sex Discrimination Act 1975 only protected against discrimination during the employment relationship. The ECJ determined the question by reference to the intended effect of Article 6 of the Equal Treatment Directive 76/207. This required Member States to provide a means for pursuing claims where equal treatment had not been afforded. The ECJ concluded this would be undermined if fear of reprisals - which had no legal redress - led to workers being deterred from taking action.^1 It accordingly rejected the argument that acts post-termination were outside the scope of the Directive. The matter returned to the EAT ( Coote v Granada Hospitality Ltd (No 2) [1999] ICR 942 ) where it declined to follow Adekeye. It held that s.6(2) SDA was capable of being read as embracing a woman “ who has been employed by him .”

(^1) Paragraph 24

  1. This principle was extended further and approved by the House of Lords in Rhys-Harper v Relaxion Group Plc [2001] IRLR 460. During an internal appeal against a notice of dismissal, Ms Rhy-Harper made allegations of sexual harassment. The company rejected the allegations and upheld the dismissal. As part of her claim to the Tribunal, Ms Rhys-Harper alleged sex discrimination for failing to properly investigate her complaint. The Tribunal held the dismissal did not take effect until the appeal outcome was delivered and that it had jurisdiction to hear the claim. The EAT however, upheld an appeal, concluding the date of termination was the expiration of the notice of dismissal and that accordingly as any discrimination post-dated termination, the Tribunal lacked jurisdiction. The EAT and Court of Appeal were referred to Coote but concluded this applied only to claims of victimisation. The House of Lords disagreed. First, it concluded it was not possible for these purposes to differentiate between victimisation and other forms of discrimination.^2 Secondly, their Lordships concluded there was no material difference in the phrase “ employed by him ” or “ whom he employs ” as set out under the various different Acts. Finally, and most importantly, their Lordships identified that the employment relationship can and often does extend beyond the termination. It therefore went on to conclude that post-termination discrimination was actionable. In particular Lord Nicholls stated:

“To my mind the natural and proper interpretation of section 6(2) of the Sex Discrimination Act 1975 and the corresponding provisions in the other two Acts in this context is that once two persons enter into the relationship of employer and employee, the employee is intended to be protected against discrimination by the employer in respect of all the benefits arising from that relationship. The statutory provisions are concerned with the manner in which the employer conducts himself, vis-à-vis the employee, with regard to all the benefits arising from his employment, whether as a matter of strict legal entitlement or not. This being the purpose, it would make no sense to draw an arbitrary line at the precise moment when the contract of employment ends, protecting the employee against discrimination in respect of all benefits up to that point but in respect of none thereafter”.

Post-Equality Act

  1. The law was therefore settled. However, the Equality Act 2010 established a different framework. First under section 39, the prohibited conduct is expressed as preventing “ An employer (A)” from discriminating or victimising “ an employee of A’s (B)”. This seemingly returns to the original problem, but with added emphasis. The rationale of Rhys-Harper related to on-going employment relationships. That does not necessarily bear out from section 39.
  2. This however, is now covered by section 108, which deals with “Relationships that have ended.”

This states:

(1) A person (A) must not discriminate against another (B) if— (a) the discrimination arises out of and is closely connected to a relationship which used to exist between them, and (b) conduct of a description constituting the discrimination would, if it occurred during the relationship, contravene this Act. (2) A person (A) must not harass another (B) if— (a) the harassment arises out of and is closely connected to a relationship which used to exist between them, and (b) conduct of a description constituting the harassment would, if it occurred during the relationship, contravene this Act. … (4) A duty to make reasonable adjustments applies to A [if B is] placed at a substantial disadvantage as mentioned in section 20. … (7) But conduct is not a contravention of this section in so far as it also amounts to victimisation of B by A.

(^2) Lord Nicholls at Para 34

  1. Additive Discrimination:

“when a person is treated less favourably because of more than one protected characteristic and, although the two forms of discrimination happen at the same time, they are not related to each other. For example, a lesbian experiences both homophobia and sexist bullying from her employer during the same incident.”

  1. Intersectional Discrimination:

“when the discrimination involves more than one protected characteristic and it is the unique combination of characteristics that results in discrimination, in such a way that they are completely inseparable. This often occurs as a result of stereotyped attitudes or prejudice relating to particular combinations of the protected characteristics.”

  1. The document gives the following specific example:

“An older woman applies for a job as a driving instructor …[S]he is told it that she was not appointed …because it is not considered a suitable job for an older woman. The driving school advises her that they don’t think she would have the strength and agility needed to grab the steering wheel or be able to brake quickly. She is told that she would have been appointed had she been an older man or a younger woman.”

  1. The issue of additive discrimination has always been actionable providing one or both strands can be proved. The issue of intersectional discrimination however, gained greater prominence following the Court of Appeal decision in Bahl v The Law Society and others [2004] IRLR 799. Both the EAT and Court of Appeal overturned a decision of an Employment Tribunal that Dr Bahl had been subjected to both direct race and sex discrimination without analysing which of the two applied. Dr Bahl was a black Asian woman who had been the subject of allegations of bullying. Following an inquiry the Law Society censured and suspended Dr Bahl, consequent to which she resigned and claimed race and sex discrimination. Despite rejecting many of her complaints and finding Dr Bahl “ was not a witness of truth ” the Employment Tribunal upheld certain discrete claims, relating to comments of the Law Society President and Secretary General. The Tribunal concluded:

“We do not distinguish between the race or sex of the applicant in reaching this conclusion. Our reason for that is simple. The claim was advanced on the basis that Kamlesh Bahl was treated in the way she was because she is a black woman. Kamlesh Bahl was the first office holder that the Law Society had ever had who was not both white and male. There was no basis in the evidence for comparing her treatment with that of a white female, or a black male, office holder. We can only draw inferences. We do not know what was in the minds of Robert Sayer and Jane Betts at any particular point. It is sufficient for our purposes to find, where appropriate, that in each case they would not have treated a white person or a man less favourably. If we need to refine our approach for the purposes of dealing with remedy the parties may address this issue at that stage.”

  1. Both the EAT and Court of Appeal upheld the appeal and in so doing criticised the adequacy of reasons and the lack of evidence supporting either race or sex discrimination. It is of note the earlier part of the Tribunal’s reasons, point in the direction that discrimination was a product not of the Claimant being black or being a woman, but having the dual characteristics of a black woman. This would be intersectional discrimination. However, the latter part suggests they reached a conclusion of discrimination, but could not specifically identify which of the characteristics was behind the treatment.
  1. The Court of Appeal rejected this reasoning. It identified the need to make comparisons and identify an appropriate comparator. Moreover, it went on to seemingly reject any suggestion of intersectional discrimination.

“What the ET has plainly omitted to do is to identify what evidence goes to support a finding of race discrimination and what evidence goes to support a finding of sex discrimination ...In our judgment, it was necessary for the ET to find the primary facts in relation to each type of discrimination against each alleged discriminator and then to explain why it was making the inference which it did in favour of Dr Bahl on whom lay the burden of proving her case. It failed to do so, and thereby, as the EAT correctly found, erred in law.”

  1. It must be observed the ratio of Bahl does not expressly preclude intersectional discrimination. Section 14 however, was designed and intended to expressly permit such a cause of action. In light of Bahl and the government’s decision not to implement s.14 it would appear such claims are not intended to be actionable. Were a Tribunal faced with a claim from the older woman in the example above, it would seemingly have to reject the claim, despite the apparent discrimination.
  2. Some assistance may however, be found in the well-publicised first instance decision in Miriam O’Reilly v BBC 2200423/2010 (ET). The Claimant was a BBC presenter, well-known for a variety of programmes including Countryfile. Following successful ratings Countryfile was moved to a prime time slot as a result of which the Claimant was not “moved forward” with the role. Following discovery of other presenters not moving forward, the Claimant formed the view this was a result of older women being removed. The Claimant subsequently brought claims under the SDA and the Employment Equality (Age) Regulations 2006. Whilst considering the matter under the old legislation, particular reference was had to the then impending Equality Act 2010 and in particular the question of dual discrimination under s.14.^3 It was argued by the Respondent that in the absence of s.14 it must be assumed combined discrimination was not actionable. The Respondent also relied upon Bahl. The Tribunal rejected this argument, concluding the protected characteristic need not be the “ sole reason ” for discrimination. Indeed, this was made clear in Nagarajan v London Regional Transport [2000] 1 AC 501; [1999] IRLR 572 in which it was held that the proscribed ground need only have been “ a significant influence on the outcome ”.^4 This however, raises the problem of the appropriate comparator. It is of note this question was not specifically addressed even under the Equality Act 2010. The Tribunal however, reasoned the comparative exercise would work as follows:

“…a woman over 40 can compare her treatment to a man over 40; by which exercise the sex discrimination element of the treatment is established. Similarly, the woman over 40 can compare her treatment to another person under 40, thereby establishing the age discrimination element.”

  1. It is however, clear from the first comparison that it succeeds only because it involves both gender and age. It is an intersectional comparison, which prima facie necessitates a conclusion of combined discrimination. This can be seen more readily in the context of another example of intersectional discrimination proposed in the government’s discussion document:

“A bus driver does not allow a Muslim man onto her bus, claiming that he could be a “terrorist”.

  1. A comparison with a Muslim female, would demonstrate that religion of itself was not the factor. A comparison of another male would demonstrate that gender was not the factor. The comparison can only be elucidated by reference to both characteristics. Indeed this was the explanation of the Government Equalities Office.
  2. As O’Reilly is a claim of first instance, it is in any event not authoritative. Further support can however, be found in the EAT decision in Ministry of Defence v Debique [2010] IRLR 471. This

(^3) See paragraph 238 (^4) per Lord Nicholls, at p.576)

disadvantage which is suffered by others but for a completely different reason unrelated to their age. If it were translated into other contexts it would have alarming consequences for the law of discrimination generally.”

  1. In rejecting this approach Lady Hale highlighted the legislative purpose is to level the playing field where there is a “ comparative disadvantage ”. Further, she concluded that put simply people of a certain age group did not have time to acquire a law degree due to retirement. The case was therefore remitted to the Tribunal to consider the issue of justification.
  2. The essence of Homer is that one must not be too technical or apply over-complicated analysis in the formulation of comparisons when dealing with age. Where age is the essential characteristic causing the disadvantage as compared with people of another age group, it seems that will suffice to establish indirect discrimination.

Seldon

  1. This was the second case before their Lordships which has been heralded as permitting compulsory retirement. Whilst essentially accurate, the analysis is less clear cut. This case concerned a partner in a solicitors firm who was required to retire at 65. Mr Seldon brought a claim of direct age discrimination under the Age Regulations. The Respondent accepted the requirement amounted to direct discrimination but argued justification. It is of note the Lady Hale commenced her Judgment by confirming the same principles apply to the Equality Act 2010, where justification is permitted under section 13(2).
  2. The central thrust of the appeal is that justification in respect of direct discrimination and indirect discrimination are different. In particular, justification for direct discrimination is narrow and must be the broad social and economic policy objectives of the state and not the individual business needs. It was argued this was implicit from the particular provision of justification under Article 6 of the Equal Treatment Directive 2000/78. Lady Hale concluded that the United Kingdom had chosen to give employers and partnerships flexibility to choose which objectives to pursue but only provided:

“(i) these objectives can count as legitimate objectives of a public interest nature within the meaning of the Directive and (ii) are consistent with the social policy aims of the same and (iii) the means used are proportionate, that is both appropriate to the aim and (reasonably) necessary to achieve it.”

  1. Lady Hale went on to highlight the categories usually fitting within this test, namely, “ inter- generational fairness ” (e.g. access to employment for young employees and enabling older people to remain employed) and “ dignity ” (e.g. avoiding the need for dismissal on the grounds of capability). The Supreme Court then went on to consider if there was a legitimate objective whether it had to be justified in the particular case. It accepted the EAT’s analysis that adopting general rules was an important element in the justification exercise. Lady Hale held that where it was justified to have a general rule, the existence of the rule will usually justify the individual results.^6 It did not however, rule out “ extremely rare ” cases where this would not be so.
  2. The Tribunal and EAT having concluded the Respondent had three aims, the third having failed on appeal to the EAT, the Supreme Court remitted the matter for consideration of whether the first two were sufficient on their own.

Allan Roberts Guildhall Chambers September 2012

(^6) See Paragraph 64