Equality Act 2010

30 July 2018 | Kavita Parmar

Equal pay claims

The Equality Act 2010 confirms the importance that employers should treat men and women equally in the terms and conditions of employment if they are employed to do the following:

  • ‘Like work’ – this is work that is similar or broadly similar
  • Work rated ‘equivalent’ under a job evaluation
  • Work found to be of equal value when determining effort, skill or decision making.

Employers can pay men more than women or vice versa if there is what is known as the material factor defence. As a result, the employer must prove the reason is due to a material factor which is not discriminatory, whether directly or indirectly as seen in Gibson vs. Sheffield City Council (2010). It is important to note that each defence will be based on the facts of the case. The burden of proof relies on the employer to provide a real reason for the difference in pay and to ensure this is not related to their sex.

Some examples of material factors may include previous performance, seniority, length of service, hours or work and different grades on a pay scale. If a complaint arises, employers should make their employees aware of the formal grievance procedure that they can follow.

How can you defend an equal pay claim?

Employers can avoid potential claims like Tesco who may face up to £4bn in equal pay claims by conducting pay reviews and introducing pay systems that are transparent with a clear criterion. The employer must show valid differences between the claimant and comparator. The comparator must be of the opposite sex working under the same employer.

What should you do when you receive an equal pay complaint?

If you receive a complaint through an equal pay questionnaire or a written grievance, you must seek legal advice to avoid making admissions that may be used against you at a later stage. Please contact one of our employment law advisors for further help and advice.

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