Friday 13 July 2012

Birmingham City Council v Abdulla


This week the Supreme Court heard the case of Birmingham City Council v Abdulla and others. The five-judge panel was invited to determine whether equal pay claims can be brought in the ordinary courts as well as, or instead of, in the Employment Tribunal where the six-month limitation for bringing the claim applies and there is no discretion to extend, save where a claimant is disabled or there has been concealment of the differences in pay.

The eponymous appellant, Mrs Abdulla, and 174 other appellants, most of whom are woman previously employed by Birmingham City Council, brought equal pay claims in the High Court. The reason they were unable to bring the claim in the Employment Tribunal was the expiration of the six-month limitation period, whereas a six-year limitation period applies in the courts.

Consequently, an application was made by  the Council under s.2(3) of the Equal Pay Act 1970 for a declaration that the claims be struck out on the grounds that they could be more conveniently disposed of by the Employment Tribunal, where they would effectively be struck out in that forum for being out of time.

Despite the fact that the Equal Pay Act 1970 has now been replaced by the Equality Act 2010, the courts retain discretion to strike out an equal pay claim if it is more convenient for the claim to be disposed of by the Employment Tribunal. The application was refused by the High Court and its  decision was upheld by the Court of Appeal, in part on the ground that, were the claims to be struck out, the claimants would be denied a remedy in proceedings which had been brought in time in the courts.  To strike out in these circumstances would have the effect of the claimants having no choice of forum, contrary to the implications of the 1970 Act and the intentions of Parliament. 

The Supreme Court’s judgment in favour of the claimants will possibly give rise to a number of similar claims being brought in the courts within the six-year limitation period, rather than being pursued in the Employment Tribunal