Joint Committee on Statutory Instruments Twenty-First Report


Appendix 2

Draft Employment Equality (Sexual Orientation) Regulations 2003: memorandum from the Department of Trade and Industry

Draft Employment Equality (Sexual Orientation) Regulations 2003

4. The Committee has asked for a memorandum from the Department of Trade and Industry on the following points:

(1) Please expand on the statement, in paragraph 24 of Annex B to the Explanatory Memorandum, that a requirement meeting the criteria of regulation 7(3) is necessarily a genuine and determining occupational requirement which is applied proportionately. In particular, please explain why regulation 7(3) permits the imposition only of such a requirement, since regulation 7(3) appears to permit a discriminatory requirement to be imposed on a person whose occupation requires no participation in religious activities.

5. The requirement referred to in regulation 7(3) is only permitted in certain narrowly defined circumstances, where the employment is for purposes of an organised religion. Employment "for purposes of an organised religion" means that regulation 7(3) could apply to a minister of religion (if he is employed under a contract of employment), or to other persons employed by a church, mosque, temple etc. It would not apply to other organisations which are run on the basis of a religious ethos, such as a shop, care home or school, for example, unless the relevant church, mosque, temple etc had such a significant role in the management of the organisation that employment there would be "for purposes of" the church, mosque, temple etc. An argument that such employment was for purposes of an organised religion (rather than for purposes of selling goods, providing healthcare or education) would be very difficult to sustain.

6. If the employment is for purposes of an organised religion, the employer must then satisfy one of the two alternative limbs in regulation 7(3)(b), if he is to justify the application of a requirement related to sexual orientation. The first is that the requirement is applied so as to comply with the doctrines of the religion. So where the doctrine of a religion excludes persons of a particular sexual orientation from being ministers of religion, for example, this would be justified under regulation 7(3). Alternatively, by virtue of the second limb, the employer must show that the requirement is applied because of the nature and context of the employment so as to avoid conflicting with the strongly held religious convictions of a significant number of followers. This means that (particularly where the precise extent of doctrine is not clear), the employer may refer to followers' religious convictions, but only if he does so by reason of the nature and context of the job.

7. A requirement related to sexual orientation which meets the criteria in regulation 7(3) described above would necessarily meet the criteria set out in Article 4.1 of Directive 2000/78/EC; and similarly, a requirement which does not satisfy Article 4.1 would not meet the criteria in regulation 7(3). This is because, when taken together, the criteria in regulation 7(3) require that the work must be closely bound up with the religion in question and its doctrine or the religious convictions of its followers. If the employment is not for purposes of the religion it will not meet the criteria; if the work is not subject to the religion's doctrine, or its nature and context do not make it subject to followers' religious convictions, then it will not meet the criteria.

8. Only in very limited circumstances would a requirement imposed on a person whose work does not involve participation in religious activities be justified under regulation 7(3). So persons with a role of leadership or representation in a church, mosque, temple etc could probably be subject to such requirements, although they may not be ministers of religion with a role in leading worship or prayer. By contrast, it is very unlikely that an employer could show that a typist or cleaner meets the criteria in regulation 7(3) by reference to the religion's doctrine or the nature and context of the work. However, that cannot be ruled out entirely, if the employer can meet those criteria in relation to such an employee. This position is consistent with Article 4.1 of the Directive.

9. The European Court of Justice has also noted on a number of occasions (see C-106/89 Marleasing [1990] ECR 4135, for example) that national courts are required to interpret national legislation consistently with the European Community obligations which they are intended to implement, where it is possible to do so. Therefore, it is to be expected that regulation 7(3) will be interpreted by the courts consistently with Article 4.1 of the Directive.

(2) Regulation 20 makes unlawful certain types of discrimination by the governing body of a university or other educational establishment specified in paragraph (2). There is no limitation as to the type of course in respect of which the discrimination is unlawful and, in particular, no limitation by reference to the categories of training mentioned in Article 2.1(b) of Directive 2000/78/EC ("... vocational guidance, vocational training, advanced vocational training and retraining…").

10. Regulation 20 adopts the approach of applying discrimination provisions to particular categories of educational institutions in existing domestic discrimination law. In this regard, the Committee's attention is drawn to section 22 (discrimination by bodies in charge of educational establishments) of the Sex Discrimination Act 1975 (c.65), by way of example. This institutional approach is maintained in order to ensure that implementation is both clear (to the individuals covered) and effective within the context of the domestic education system. It would cause practical difficulties for relevant institutions and individuals to attempt to distinguish between different courses or to leave it to the courts to establish in a series of cases over a number of years whether individual courses were covered by the Regulations.

(3) Paragraph 63 of Annex B to the Explanatory Memorandum laid before Parliament explains that so far as acts relate to courses of study outside the Directive's scope, they arise out of or are related to the Directive's obligations in relation to vocational training. What is the Department's estimate of the percentage of courses of study in England, Wales and Scotland which are covered by the Regulations but are not courses of study within the scope of the Directive?

11. The Department drew the Committee's attention to the definition of vocational training as elaborated by the European Court of Justice (ECJ) at paragraph 63 of Annex B to the Explanatory Memorandum laid before Parliament.

12. The extent to which institutions falling within regulation 20 provide courses falling outside the ECJ definition would depend on the courses offered by each institution concerned. The Department would only have access to figures reflecting publicly funded training, and a significant number of courses meeting the definition may be privately funded. The percentage would also depend on the nature of the courses being delivered at any one time, which varies. In addition, the definition is set out in general terms, and so applying that definition to the facts of a specific individual course would involve a considerable margin of error until such time as a court gave a definitive ruling in relation to that course. This renders the gathering of precise statistics difficult. For this reason it is impossible to provide a useful estimate of the percentage of courses covered by the Regulations but which fall outside the scope of the Directive.

13. It remains the Department's view that most courses provided in higher education and many courses in further education, in the relevant institutions, will meet the ECJ definition.

(4) Please explain whether any significant amendments were made to regulation 7 between the draft of the regulations which was issued for consultation in October 2002 and the draft which was laid before Parliament on 8 May, and if so, what they were.

14. The following amendments were made to regulation 7 between the draft issued for consultation in October 2002 and the draft laid before Parliament on 8 May:

· The reference in regulation 7(1)(b) to "regulation 6(2)(b)" was amended to "regulation 6(2)(b) or (c)". The amendment was made to correct a drafting error.

· A new regulation 7(1)(c) was inserted, which provides for the genuine occupational requirement ("GOR") exception to apply to dismissal from employment. The amendment was made so that the GOR exception should be available in a case where circumstances (such as the employee's sexual orientation) change, such that he or she is no longer able to satisfy the GOR, thereby justifying dismissal by the employer.

· A new sub-paragraph (c) was inserted in identical terms in each of regulation 7(2) and (3). The sub-paragraph provides that, for the exception in regulation 7 to apply, either the person in question does not meet the GOR, or the employer is not satisfied, and it is reasonable for him not to be satisfied, that that person meets it. The amendment was made to clarify in more detail the circumstances in which the exception can be relied upon.

· A new regulation 7(3) was inserted (and consequential amendments made to regulation 7(1) and (2)). This is a further exception which permits a requirement related to sexual orientation to be applied to employment for purposes of an organised religion, so as to comply with the doctrines of the religion or followers' religious convictions. The amendment was made to provide a broader exception in relation to employment for purposes of an organised religion than that available to other employers under regulation 7(2).

(5) In relation to any such amendments, please explain the extent of any further consultation undertaken; and, if no such consultation was undertaken, why not.

15. The first amendment above reflected comments received during consultation. The Department considered that it was not a significant amendment of substance such as to require further consultation. The second amendment filled a gap in the legislation to which the Department's attention was drawn during consultation, but which in practice will rarely be relevant. The Department considered that this technical change did not require further consultation. The Department considered that the third amendment was a clarificatory drafting change which did not amount to a significant change of substance such as to require further consultation.

16. The issue of gay men and lesbians employed by religious organisations was one on which a large number of views were expressed in consultation responses from a broad range of individuals and organisations over three separate exercises in the period 2000-3. It was on the basis of this evidence, and the Government's view that the Regulations should not interfere in matters of religious doctrine, that a decision was taken to insert regulation 7(3): the fourth amendment above. The provision is designed to reflect specific comments received in response to the draft regulations published in October 2002, when it became clear that the exception in regulation 7(2) could cause practical difficulties in relation to employment for purposes of an organised religion. Having made a decision to insert the provision, the Department met a small number of representatives from churches to discuss the scope of the exception. Given the large number of representations already received on the general issue, which were taken into account in drafting the provision, and the important but strictly limited impact of the amendment on only a small number of persons who are employed for purposes of an organised religion, the Department took the view that no further consultation was necessary before the draft Regulations were laid before Parliament.

(6) The draft Regulations do not yet appear to have been made available on the HMSO website. Please explain why not. In the absence of their appearance on the website, please explain what arrangements have been made for those persons interested in the draft Regulations to obtain copies.

17. The draft Regulations laid before Parliament on 8th May were in duplicated form: that is, the final draft of the Regulations drawn up, printed and copied by the Department. After the formal consultation on draft regulations which concluded on 24th January, officials and Ministers continued to consult with interested parties about detailed policy and legal issues. As a result, work on the drafting of the Regulations continued until shortly before 8th May. For this reason, it was not possible to obtain a corrected printed proof of the draft Regulations from HMSO by 8th May. Only the technical process of typesetting and correcting proofs of the draft Regulations has prevented a copy from being placed on the HMSO website before now. The Department and HMSO are working to make a copy of the regulations available on the HMSO website as soon as possible. The Department has, however, ensured that representative organisations with a close interest in the Regulations were informed that they had been laid on 8th May; and draft copies, together with the explanatory notes, were circulated by email on that day. The Department has promptly met all other requests for copies since then.

27th May 2003

Further memorandum from the Department of Trade and Industry

Draft Employment Equality (Sexual Orientation) Regulations 2003 and draft Employment Equality (Religion or Belief) Regulations 2003

18. The Committee previously asked for a memorandum from the Department of Trade and Industry on a number of points, including the prohibition of discrimination by governing bodies of further and higher education institutions (regulation 20 in each of the respective sets of Regulations), and how the scope of courses covered by that prohibition related to the scope of vocational training within the meaning of Article 3.1(b) of Directive 2000/78/EC. In its memoranda of 27th May, the Department responded to that request.

19. This memorandum explains in more detail the Department's understanding of the scope of the Regulations and Directive in this regard. The Department apologises for not having been in a position to provide such a detailed response by 27th May. Nevertheless, the Department hopes that this further information will be of assistance to the Committee.

Approach taken in regulation 20

20. The Department is of the view that the majority of further and higher education courses (but by no means all) fall within the scope of vocational training. This reflects the ECJ statement in Blaizot (see below) that university courses, in general, meet the criteria for vocational training, and that the only courses which do not do so are those which, because of their particular nature, are intended for persons wishing to improve their general knowledge. Furthermore, by virtue of the fact that further and higher education courses are defined as those suitable for persons over compulsory school age, it is more likely than not that such courses will, generally, fall within the definition of vocational training. This is because to attract such individuals, the courses are often designed so as to provide the "necessary training and skills" for a particular profession, trade or employment.

21. The Department has taken the view that regulation 20 in each set of Regulations should prohibit discrimination by the governing bodies of all further and higher education institutions, including in respect of courses falling outside the scope of vocational training, in order to create a uniform regime.

22. If, by contrast, the Regulations were limited to those courses falling within the scope of vocational training, it would create considerable uncertainty as to the extent both of the obligations placed on institutions, and the rights afforded to individuals. Whilst most courses would be covered, it would require a series of cases over a number of years to establish, with regard to any given individual course, whether or not it constituted vocational training. Even then, a course offered in the same subject by a different institution might differ sufficiently to take it from one side of the vocational training dividing line to the other. That could undermine the effectiveness of the rights laid down in Directive 2000/78/EC and implemented by the respective Regulations.

23. The Department would prefer to avoid such a scenario. Accordingly, the Department has relied on the vires in section 2(2)(b) of the European Communities Act 1972 to create certain obligations which fall outside the scope of vocational training, because it considers they are closely "related to" the obligations falling within the scope of vocational training.

Scope of vocational training in Community law

24. It is expected that the reference to "vocational training" in Article 3.1(b) of Directive 2000/78/EC will be interpreted consistently with previous case law of the European Court of Justice (ECJ) on the meaning of the term. The ECJ has defined "vocational training" in general terms, as indicated in the Department's Explanatory Memorandum, in the case of C-293/83 Gravier v. City of Liège [1985] ECR 606 as follows:

"It follows ...that any form of education which prepares for a qualification for a particular profession, trade or employment or which provides the necessary training and skills for such a profession, trade or employment is vocational training, whatever the age and the level of training of the pupils or students, and even if the training programme includes an element of general education." [paragraph 30 of the judgment]

This definition was endorsed and expanded upon by the ECJ a few years later in the case of C-24/86 Blaizot v. University of Liège [1988] ECR 355, where it stated:

"With regard to the issue whether university studies prepare for a qualification for a particular profession, trade or employment or provide the necessary training and skills for such a profession, trade or employment, it must be emphasized that that is the case not only where the final academic examination directly provides the required qualification for a particular profession, trade or employment but also in so far as the studies in question provide specific training and skills, that is to say where a student needs the knowledge so acquired for the pursuit of a profession, trade or employment, even if no legislative or administrative provisions make the acquisition of that knowledge a prerequisite for that purpose.

In general, university studies fulfil these criteria. The only exceptions are certain courses of study which, because of their particular nature, are intended for persons wishing to improve their general knowledge rather than prepare themselves for an occupation." [paragraphs 19 and 20 of the judgment]

It is to be noted that the ECJ considered the nature of the course to be the relevant factor.

25. Further guidance on the meaning of the general criteria set out by the ECJ can be found in the opinion of Advocate General Slynn in the case of C- 293/85 Commission v. Belgium [1988] ECR 305 (see Annex). Whilst this is helpful guidance on the criteria defined by the ECJ, it is important to note that AG Slynn's detailed reasoning has not been endorsed by the full Court. In Blaizot, the ECJ maintained its approach of referring to the criteria for vocational training in general terms, and did not comment on the issues discussed in more detail in the opinion of AG Slynn. As can be seen above, the ECJ was satisfied that, in general, university studies fulfilled these criteria; the only exceptions were certain courses intended for persons wishing to improve their general knowledge.

Scope of further and higher education in UK law

26. In relation to England and Wales, section 90 of the Further and Higher Education Act 1992 defines "higher education" by reference to the Education Reform Act 1988, which in Schedule 6 provides a list of higher education courses in general terms (essentially university courses and some other vocational courses, such as for teacher training or professional examinations). Section 90 of the 1992 Act defines "further education" by reference to section 2 of the Education Act 1996, which defines the term as education "suitable to the requirements of persons who are over compulsory school age", but which is not secondary education or higher education. Accordingly, it can be seen that the definitions are complementary and can be taken together to form a picture of education provided to persons over school age. In relation to Scotland, sections 1 and 38 of the Further and Higher Education (Scotland) Act 1992 define "further education" and "higher education" in similar terms.

27. Since "further education" and "higher education" are terms of UK law, they are not referred to in the ECJ case law on vocational training. Indeed, the emphasis placed by the ECJ on assessing the nature of the relevant courses suggests that a formal distinction such as this designated by national law should be disregarded. This is understandable, since other Member States may not draw the same distinction in their national education systems. AG Slynn appeared to recognise this in Commission v. Belgium (see Annex).

28. Further and higher education in the UK covers a broad range of courses and, as indicated in the Department's memoranda of 27th May, it is very difficult to specify which courses fall within the scope of vocational training described above, and which fall outside it.

29. At one end of the spectrum, there are the courses which provide a qualification which is recognised for admission to a profession or trade, without a requirement for any further qualification. An example of this is a course in medicine which provides the qualification necessary to practise as a doctor. Then there are those courses (even though they may also include an element of general education) which are a condition for qualifying for a particular trade or profession, but are not on their own sufficient for admission. An example of this is a degree in law, which allows a person to undertake further training which must be successfully completed before he or she may then become a trainee solicitor or pupil barrister. All these courses clearly fall within the scope of vocational training.

30. At the opposite end of the spectrum are courses which are merely "intended for persons wishing to improve their general knowledge". These generally fall outside the scope of vocational training. This category may include university studies in literature, medieval history or classics, such as referred to by AG Slynn (see Annex), but to determine that would require an assessment of each individual course to confirm that is the case, and it could not be ruled out entirely that such courses constitute vocational training.

31. Between these two extremes lie a large number of further and higher education courses where it is very difficult to specify whether a given course falls within or outside the scope of vocational training. Each individual course requires an assessment of its overall relevance to a particular profession, trade or employment in order to determine if it constitutes vocational training. For example, a three-year university degree in chemistry or biology may or may not meet the criteria set out by the ECJ, depending on the circumstances. The same can be said of a three-month course offering a diploma in computer studies or cookery skills, which could be intended to provide occupational skills, or skills of use to a person in their leisure time, or a combination of both. Nevertheless, as the ECJ indicated in Blaizot, courses of further and higher education falling between the two ends of the spectrum described above will, in general, constitute vocational training.

32. As the Department indicated in its memoranda of 27th May, other factors also make it difficult to make a useful estimate of the proportion of courses which fall within and which fall outside the scope of vocational training. These include the number of courses offered by each institution at a given time, which may vary, and the fact that the Department does not have access to figures reflecting privately funded courses.

33. For the reasons given above, the Department is therefore of the view that the majority of further and higher education courses fall within the scope of vocational training, reflecting the views expressed by the ECJ in Blaizot.

30th May 2003

ANNEX: OPINION OF ADVOCATE GENERAL SLYNN IN C- 293/85 COMMISSION V. BELGIUM [1988] ECR 305

34. AG Slynn adopted his reasoning in the Commission v. Belgium case for the purposes of his opinion in the Blaizot case. In Commission v. Belgium the full Court did not express its views on the merits, as it found the case to be inadmissible by reason of the insufficient time the Commission had allowed Belgium to respond to its formal opinion.

35. In commenting on the general criteria set out by the ECJ in Gravier, AG Slynn explained:

"...it seems to me that it is sufficient if a university degree is an integral and necessary part of a qualification or if it provides exemptions from proving proficiency in subjects which would otherwise be tested by a professional body and even if it covers some subjects not so required."

36. He emphasised that merely because many employers advertise specifically for graduates, that does not mean that all university studies fall within the scope of vocational training. He explained that there must be a direct link between the training and the profession or trade:

"It is not sufficient that, because for most jobs it is necessary to read or write or to do basic arithmetic (if that still exists as part of mathematics teaching), training in these constitutes vocational training. There must be a sufficiently direct link between the training and the profession or trade. Thus, courses which essentially are to increase knowledge or cultural awareness or 'develop the mind' would ordinarily be excluded. A course in literature, medieval history or classics may be invaluable for the successful career of the diplomat, the politician or the clergyman but they do not have a sufficiently direct link with the skills needed in those particular professions."

37. AG Slynn noted that such courses could not be said to constitute vocational training for teachers, unless the courses were specifically designed to prepare for a teaching qualification or provide the skills and training for teaching such a subject. He also acknowledged that this approach would lead to difficult cases, which would require an assessment of "the overall relevance of the course to a particular profession, trade or employment".

38. He also appeared to recognise that formal distinctions in national law should be disregarded:

"Both [Article 128 of the EEC Treaty as it then was and the ECJ judgment in Gravier] seem to me to direct attention to the nature of the course of training or instruction rather than to the kind of institution involved. I do not consider that either the Article or the judgment imply a priori that a university is an institution apart which must necessarily be excluded from the principle upheld in Gravier. For the medieval schoolmen a university may have been sui generis. In the late twentieth century that is not to be assumed so far as teaching as opposed to research is concerned, not least since other institutions, such as United Kingdom polytechnics, now frequently teach courses in some subjects at a comparable level to that attained in the universities. It would be quite wrong if, for example, a degree or a diploma in architecture from a university or a specialist school qualified for practice, that one should count as vocational training and not the other. Moreover it is possible that what in some Member States is included only in university curricula is in other Member States taught in other institutions of higher education which are not strictly categorized as universities. To distinguish by institutions rather than by the nature of the courses therefore seems to me to be unacceptable."


 
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