The case of Gharabli v Cedar Hope Care Services Ltd has ruled that paying a higher salary to sponsored workers, compared to domestic workers who are working in the same role, amounted to indirect race discrimination.
Gharabli was a Support Worker at Cedar Hope Care Services Ltd who had been promoted to a Senior Support Worker in May 2023, with an increase in her hourly pay, and a further increase scheduled, subject to completing her probation.
However, Gharabli became aware that Support Workers who were sponsored under the Skilled Worker visa were being paid a higher hourly rate of pay than their domestic counterparts.
After voicing her concerns in August 2023, Gharabli’s pay was increased, but this did not happen for the domestic Support Workers.
When Gharabli later requested a return to her previous role of Support Worker, due to personal reasons, her pay was reduced back down to the domestic Support Worker rate, which was lower than the sponsored rate.
Gharabli argued that domestic and sponsored staff were carrying out the same role and, as such, should receive the same rate of pay. However, the employer defended their actions, claiming that they were adhering to the minimum pay requirements of the Home Office and that sponsored workers had additional responsibilities.
The Tribunal, however, found that both groups of Support Workers were performing the same role. There was no evidence as to why the pay disparity was necessary, and the employer was unable to justify why domestic workers couldn’t have received pay that was equal to their sponsored colleagues.
As a result, Gharabli’s claim of indirect race discrimination was upheld, and she was awarded over £14,000, with £10,000 for injury to feelings, £2,237 for financial losses and an additional £1,938 for interest.
This is an important outcome for employers who employ sponsored workers. While pay for sponsored workers may be dictated by Home Office requirements, this is not a sufficient justification for offering different terms compared to domestic workers.
If this case raises questions about your pay structure or sponsored workers, contact Solutions for HR today.
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