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SMP not indirectly discriminatory

This report relates to 1 case(s)

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    Banks v Tesco Stores Ltd [1999] ICR 1141 IT (1 other report)

    • Equal pay: Challenge to SMP exclusion fails

      Date:
      15 September 1997

      In Banks v (1) Tesco Stores Ltd (2) Secretary of State for Social Security, an industrial tribunal holds that the contract of a part-time employee, who was not eligible for SMP because her earnings were less than the lower earnings limit for payment of national insurance contributions, was less favourable in respect of parental leave than that of a male comparator who was unconditionally entitled to three days' paid parental leave.

The rules on statutory maternity pay (SMP) which deny payment to women whose earnings are below the lower earnings limit cannot be held to be indirectly discriminatory on grounds of sex, an Ashford industrial tribunal (Chair: D E de Saxe) has held in Banks v (1) Tesco Stores Ltd and (2) Secretary of State for Social Security.

This decision was a continuation of the case reported in DCLD33S in which the tribunal rejected a claim that the SMP lower earnings limit undermines the purpose of maternity leave and is therefore contrary to EC law.