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Equal Pay

Equal Pay is a cornerstone of workplace equality under the Equality Act 2010. The law ensures that men and women performing equal work, work rated as equivalent, or work of equal value are entitled to the same pay, unless a clear and lawful justification for a difference exists.

While the principle seems simple, its application can be complex. Equal pay claims often involve detailed comparisons of job roles, responsibilities, skills, effort, and working conditions.

Understanding Equal Work

The law recognises three main ways to determine if work is equal:

  1. Equal work – Employees perform the same or broadly similar tasks.
  2. Work rated as equivalent – Jobs are evaluated and rated as equivalent through objective job evaluation schemes.
  3. Work of equal value – Jobs may be different in nature but require comparable levels of skill, effort, responsibility, and decision-making.

For example, a legal assistant and a paralegal may perform different tasks, but if the roles require comparable skills, qualifications, and responsibilities, the pay must reflect that equality.

Justifying Pay Differences

Even when work is deemed equal, employers may lawfully pay differently if they can objectively justify the pay difference. Acceptable reasons can include:

  • A seniority system
  • A merit-based performance system
  • Pay linked to experience or qualifications

However, vague or subjective justifications – like claiming one employee has a “glint in their eye”- will rarely satisfy a Tribunal.

Burden of Proof

In equal pay cases, the burden of proof shifts to the employer once an employee establishes a prima facie case that their pay is lower for equal work. This means employers must prove the pay difference is unrelated to sex discrimination. Failure to do so can result in substantial financial liability, including back pay and compensation.

Key Considerations for Employers

Employers should take proactive steps to ensure compliance:

  • Conduct pay audits to identify and rectify unjustified pay gaps.
  • Maintain transparent pay structures and document how pay decisions are made.
  • Ensure job evaluations and grading systems are applied consistently.
  • Train managers and HR teams on equal pay obligations and avoiding unconscious bias.

Key Considerations for Employees

Employees who suspect unequal pay should:

  • Compare their role with colleagues of the opposite sex doing equal work.
  • Keep documentation of job descriptions, pay records, and responsibilities.
  • Raise concerns internally through the grievance process before considering formal claims.
  • Seek advice early to understand their rights and potential remedies, including Employment Tribunal claims.

Legal Remedies

If an Employment Tribunal finds a pay gap is unjustified, remedies can include:

  • Back pay for underpayment
  • Compensation for financial loss or distress
  • Recommendations for future pay adjustments

How Thrive Law Can Help

For Employers:

  • Review pay structures and policies to ensure compliance with the Equality Act 2010.
  • Implement proactive audits and training to prevent claims.
  • Advise on defending claims effectively while reducing financial and reputational risks.

For Employees:

  • Prepare grievances and evidence to support claims of unequal pay.
  • Advise on Tribunal claims, including drafting and submitting forms, witness statements, and schedules of loss.
  • Provide guidance throughout the process to maximise the likelihood of a fair outcome.

Get in Touch
If you believe Thrive Law can assist with an equal pay issue, please contact us at enquiries@thrivelaw.co.uk. Early advice can help prevent disputes from escalating and improve outcomes for all parties.

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