British Airways (BA) has faced a significant setback in its legal battle over its controversial ‘fire and rehire’ strategy implemented during the COVID-19 pandemic.

The airline’s appeal against an Employment Tribunal ruling has been dismissed, upholding the Tribunal’s decision that the Equality Act 2010 extends to cases of ‘indirect associative discrimination.’

The case was brought by 38 former cabin crew members who challenged BA’s practice of dismissing employees before re-employing them under new and often less favorable terms. The Employment Tribunal’s ruling from December 2022 had established that the Equality Act 2010 should be interpreted to protect against indirect associative discrimination, including in cases of sex and race discrimination.

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In a recent two-day hearing, British Airways argued against this interpretation, seeking to overturn the Tribunal’s decision. Key testimonies included those from Women and Equalities Minister Bridget Phillipson and the Human Rights Commission, who supported the view that the Equality Act’s protections should apply broadly, including to both male and female home carers.

Court documents released yesterday confirm that the Employment Appeal Tribunal (EAT) has rejected BA’s appeal. This ruling reinforces the application of Section 19A of the Equality Act 2010, which was introduced to align UK law with established EU protections against indirect discrimination by association. This section eliminates the need for claimants to rely on EU law and supports the Tribunal’s interpretation of the Equality Act.

A British Airways spokesperson commented, “This appeal was about seeking the Employment Appeal Tribunal’s direction on a narrow and technical area of law. We note the decision of the Tribunal and will carefully review its judgment before considering next steps.

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The ongoing legal proceedings involve a substantial claim for damages amounting to up to £515 million from former Heathrow-based cabin crew. These employees were among the 12,000 BA staff affected by the ‘fire and rehire’ strategy in 2020, british airways cadet which included changes to their employment contracts, reduced pay, and altered terms and conditions.

Notably, the airline also terminated its crew ‘Scheduling Agreement,’ which had previously guaranteed time off between flights, and introduced new standby requirements.