Part-Time Workers Win Rights, Insurers Face Backlash on Mortgage-Protection Policies

Strategic Insights -

The House of Lords has recently upheld an Equal Opportunities Commission appeal, ruling that the denial of rights to part-time workers in the workplace was tantamount to indirect sexual discrimination. This decision will grant part-time workers, who work less than 16 hours a week, the same protection under the 1978 Employment Protection Act as full-time workers after two years with an employer, rather than the present five years. As a result, insurers are under pressure to review their mortgage-payment protection policies that exclude part-timers.

Key Takeaways:

  • The House of Lords has ruled that denying rights to part-time workers is indirect sexual discrimination, affecting 87% of part-timers who are women.
  • Part-time workers who work less than 16 hours a week will now be granted protection under the 1978 Employment Protection Act after two years with an employer, the same as full-timers.
  • Insurers will have to justify the exclusion of part-timers from mortgage-payment protection policies, showing that the decision is not based on discrimination.
  • Insurers, including General Accident, are reviewing their policies but have not yet decided to make changes.
  • The Equal Opportunities Commission hopes that insurers will reconsider their approach and not blanket part-timers together.
  • Companies providing mortgage-protection services may face accusations of indirect discrimination if they continue to exclude part-timers.

Statistics:

  • 87% of part-timers are women, making the exclusion of part-timers from mortgage-payment protection policies a form of indirect sexual discrimination.
  • Part-timers will be granted protection under the 1978 Employment Protection Act after two years with an employer, rather than the present five years.
  • 16 hours a week is the threshold for part-time workers to be eligible for protection under the 1978 Employment Protection Act.

Sources:

  • The Sunday Times, 6 November 1994 (Copyright (C) 1994)
  • House of Lords ruling
  • Equal Opportunities Commission
  • General Accident Insurance Company
  • David Wilkinson, partner at Berrymans law firm
  • Carol Foster, of the Equal Opportunities Commission