Cadman v Health and Safety Executive — age discrimination
In general, employers do not need specifically to justify using length of service to calculate pay, according to the European Court of Justice (ECJ) in Cadman v Health and Safety Executive (Case C-17/05, 3.10.06). An employer will only have to justify using this system for a particular job if a worker can provide evidence raising serious doubts that this is an appropriate way of rewarding experience.
This case was about equal pay – that is, sex discrimination in pay. However, it is also very relevant to age discrimination, as the main issue was whether using length of service as a criterion is objectively justified. Using length of service in workplace policies is a prime example of potential indirect age discrimination, as older workers will tend to have longer service than younger workers.
The case
The female claimant brought an equal pay complaint comparing her pay with that of four male comparators. Her employer explained the discrepancy in pay on the basis that it operated a differential remuneration system, where pay increased according to length of service. The system tended to disadvantage women, who had shorter service than men in the relevant part of the organisation. The employee claimed that this system indirectly discriminated against women, and so needed to be objectively justified by the employer. She also claimed that the employer had failed to provide this justification.The claimant was successful before the employment tribunal. However, the Employment Appeal Tribunal decided – on the basis of previous decisions of the ECJ – that there was no need for an employer to provide specific justification where length of service was used as a criterion.On appeal, the Court of Appeal decided to refer the issue to the ECJ, on the basis that the previous case law was unclear. The decision of the ECJ in the Danfoss case [1989] IRLR 532 established that length of service was generally objectively justified, on the grounds that “length of service goes hand in hand with experience”, and so there was no need to look at the employer’s specific justifications on the facts of the case. But the Court of Appeal thought that a number of later cases suggested that the ECJ was having second thoughts about this principle.
The ECJ decided:



















