Discrimination and Compensation Culture

The European Court of Justice (ECJ) has held that where the reason for a job application is only to seek compensation for discrimination, rather than to seek employment, the applicant will be outside the scope of the protection offered by EU law – in the case of the UK, under the Equality Act 2010.

The Act prohibits discrimination in employment on the grounds of various protected characteristics such as age, disability, religion or belief and sexual orientation.

This case considered a company which required, in its job advertisements, a good university degree in one of a number of specified fields and relevant experience. Applicants had to have passed state examinations and an employment law option, or have medical knowledge.

The claimant applied for a position in the legal field and fulfilled all requirements. The application was rejected, after which the claimant complained, demanding compensation for age discrimination. The company thereafter confirmed that the rejection letter had been automatically generated which was not their intention.

The claimant declined to discuss the matter, stating he would do so after he received the compensation.

When the compensation was not provided, the claimant brought a claim for age discrimination. The ECJ held that, where the sole purpose of an application is a claim for discrimination compensation, the claimant is not protected by discrimination legislation and a compensation claim would not be permitted.

The decision of the ECJ backs the current authority of the Employment Appeals Tribunal in England and Wales which states that individuals applying for jobs who would not, in fact, be interested in accepting the role should they be offered employment, cannot claim discrimination if they are unsuccessful. The German case does, however, highlight that employers need to exercise caution in respect of automated selection criteria where a large volume of applications are received as unintentional discrimination could occur for which they could be liable.