When Can Costs Justify Discrimination?

In Heskett v Secretary of State for Justice [2020] EWCA Civ 1487 the Court of Appeal held that although saving or avoiding costs cannot in and of itself justify indirect discrimination on grounds of age, an employer’s need to reduce costs in order to balance its books in response to a public sector pay freeze was a legitimate aim capable of justifying indirect age discrimination.

Background

Indirect discrimination occurs when a provision, criterion or practice (PCP) places or would place individuals with a protected characteristic at a substantial disadvantage compared to persons without that characteristic. Unlike other forms of discrimination, indirect discrimination may be justified