EU Law - Equal Pay II - Payments on Termination of Employment and Pensions (Social Policy)

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  • Created by: Alasdair
  • Created on: 11-11-20 23:58
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  • Equal Pay II - Payments on Termination of Employment and Pensions (Social Policy)
    • Payments on Termination of Employment
      • Barber v Guardian Royal Exchange Assurance (case 262/88) [1990] ECR 1889
        • Reasons why this was pay within Article 157 TFEU
          • Money received by an employee will be 'pay'  within Article 157 TFEU
            • provided worker receives it, albeit indirectly, in respect of his employment from his employer.
          • Didn't matter payment was received after employment relationship had come to an end.
          • Statutory redundancy pay constitutes such a form of pay.
            • It provides employee with source of income during period in which he is seeking new employment.
          • A redundancy payment made by employer cannot cease to constitute a form of pay on sole ground that
            • rather than deriving from contract of employment, it is statutory or an ex gratia payment.
        • Facts
          • UK Government argued that it could not be since it constituted form of social security benefit (falling outside of Article 157) rather than pay
      • R v Secretary of State for Employment, ex p Seymour Smith (case C-167/97) [1999] ECR I-623
        • Facts
          • Concerned payment of compensation for unfair dismissal
          • UK government in 1985 increased qualifying period for unfair dismissal compensation under Employment Protection (Consolidation) Act 1978 from one year to two
          • Applicants argued it indirectly discriminated against women - less likely than men to satisfy qualifying period of two years
            • UK government argued unfair dismissal compensation did not constitute 'pay' within Article 157 TFEU
        • Reasons why this was pay within Article `157 TFEU
          • ECJ repeated its reasoning in Barber
            • money received by employee will be 'pay' within Article 157 TFEU provided worker receives it
              • albeit indirectly in respect of his employment from his employer and it did not matter payment was received after employment relationship had come to an end.
          • Compensation for unfair dismissal is designed in particular to give employee what he would have earned if employer had not lawfully terminated employment relationship.
            • Was pay within Article 157 TFEU
    • Pensions
      • Defrenne v Belgium (No 1) (case 80/70) [1971] ECR 445
        • ECJ considered scheme whereby compulsory payments were made by employer into State social security scheme.
        • Employer paid different amounts into scheme depending on whether employee in relation to whom payments were being made was  male or female.
        • Belgium law required employer make these contributions and set out basis on which they were paid.
        • Held by ECJ these payments did not constitute 'pay' and did not therefore fall within Article 157 TFEU
      • Bilka-Kaufhaus
        • ECJ considered occupational pension scheme
          • Scheme had to be set up by pursuant to private agreement within firm.
          • Payments into scheme were paid only by employer (no State contribution)
          • Scheme meant to supplement State scheme
        • ECJ held these payments could fall within meaning of 'pay' in Article 157 TFEU
        • ECJ suggested in  judgement since scheme was contractual and not statutory, payments made into it could be 'pay'
      • Barber v GRE
        • ECJ considered 'contracted out' scheme
          • Within schemes, employees were allowed, under statue, to contract out of State pension scheme in UK and replace it with a pension paid by employer in substitute to State pension.
        • Barber had contracted out and challenged fact under his new scheme, he could not get any payments until he was 55, whereas women could start claiming at 50.
          • Only means of challenging rule was to show payments made by employer into contracted out scheme were 'pay' within Article 157 TFEU
        • ECJ held
          • ',,,fact that a benefit is in the nature of pay cannot be called into question where worker is entitled to receive benefit in question from his employer by reason of existence of employment relationship.'

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