The Supreme Court has delivered an important ruling that could affect how employers treat part time workers.
In Augustine v Data Cars Limited, the Court confirmed that a part time worker does not need to show that their part time status was the sole reason for less favourable treatment. It can be enough for it to be an effective cause.
For employers, this means it is worth reviewing how workplace policies and arrangements affect part time employees.
What was the case about?
Warren Augustine worked as a private hire driver for Data Cars. Drivers were charged a fixed weekly £148 fee to access the company’s booking system, regardless of how many hours they worked.
Mr Augustine argued that this disadvantaged him because, as a part time worker, the fixed fee represented a higher cost per hour than it did for full time drivers.
His claim was initially unsuccessful, but the case eventually reached the Supreme Court.
The Court unanimously allowed his appeal and confirmed that part time status does not have to be the sole cause of less favourable treatment. It can be one of the effective causes.
Why does this matter for employers?
The ruling means employers may find it harder to argue that a claim should fail simply because there were other reasons behind a particular decision.
The focus is on whether part time status was an effective cause of the less favourable treatment.
This does not mean that full time and part time employees must be treated identically in every situation. However, employers should be able to explain why different arrangements exist and ensure they do not unfairly disadvantage part time staff.
Where should employers look for potential risks?
Employers should review arrangements such as:
1. Pay and bonuses
Check that bonus criteria and pay arrangements do not disadvantage employees simply because they work fewer hours.
2. Benefits
Consider whether benefits are provided fairly and, where appropriate, on a pro rata basis.
3. Overtime
Review whether part time employees have to work significantly more hours before becoming eligible for overtime.
4. Fixed payments and deductions
A payment can appear fair because everyone pays the same amount, while still having a greater impact on part time workers.
5. Training and promotion
Make sure part time employees have fair access to development, training and progression opportunities.
6. Holiday arrangements
Check that holiday entitlement is calculated correctly and consistently.
The importance of the pro rata principle
The pro rata principle is particularly relevant when considering part time workers.
Where appropriate, part time employees should receive terms that are proportionate to those of comparable full time employees.
However, not every benefit or workplace arrangement can simply be divided according to hours worked. Employers should consider the nature of the arrangement and whether the approach could result in less favourable treatment.
What should employers do now?
This ruling is a good opportunity to review your current HR arrangements.
Employers should:
- Review pay, bonuses and overtime arrangements.
- Check benefits and deductions for potential disadvantages.
- Review fixed payments that apply equally to all employees.
- Make sure part time employees have fair access to training and progression.
- Check holiday arrangements.
- Review relevant HR policies.
- Document the reasons for arrangements where full time and part time employees are treated differently.
Good documentation is important. If a workplace arrangement is challenged, employers should be able to clearly explain why the decision was made.
