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Equal pay: Guidance on assessing validity of job evaluation studies

This report relates to 1 case(s)

  • expand disabled

    Thomson v Diageo plc [2004] All ER (D) 86 (Jun) EAT (0 other reports)

Key Points

In Diageo plc v Thomson,the EAT holds:

  • The test of a "valid job evaluation study" is that it must be thorough in analysis and capable of impartial application. In assessing whether that test is satisfied, tribunals should first set out the issues with reference to this test. If there are defects in the study carried out, it should determine whether, individually or collectively, they cause the evaluation to fail this test.
  • The tribunal in this case was entitled to find that an ad hoc evaluation based loosely on the Hay system failed this test because, as use of that well-known system was being run down, the ad hoc evaluation did not have all the elements of a proper Hay test.
  • However, the tribunal had failed to deal appropriately with the impact of an earlier evaluation that had ceased to apply when the ad hoc evaluation was carried out, assuming it to have been valid. Since the validity of that earlier study would be relevant for determining the point at which any compensation due should be backdated, the EAT ordered that assessment of its validity be remitted to a fresh tribunal, with directions as to how it should proceed.