The Right to Equal Pay

Employers are legally obliged to offer their employees equal treatment, irrespective of gender. This ruling is regulated by the Equality Act of 2010, and claims can be brought against employers if equalities are not honoured in contracts and working conditions. This guide examines the rights to equal pay and the regulations that surround an employer's conduct in this field. The guide also covers how to proceed with addressing a complaint if it is believed that there are inequalities in pay within your workplace.

What Does Equal Pay Mean?

People who complete the same job in the same conditions should legally receive the same pay. Equal pay may also refer to the pay that should be given to those working in similar jobs, or jobs of equal values. Historically, women have often been paid much less than their male counterparts.

Equal pay rights can cover more than an hourly rate or annual salary. The rights can include:

• Basic pay
• Overtime Payments and rates
• Performance related benefits
• Bonus Payments
• Entitlements to Annual Leave
• Access to Pension Schemes
• Non-financial based terms.

How Do Employees Know If They Are Being Paid Equally?

There are numerous ways that employees can find out if they are being paid equally. These include:

• Liaising with colleagues
• Compiling results of an equal pay questionnaire
• Researching job advertisements to find the pay level offered
• Researching job evaluation studies.

If an employee suspects pay inequality, they are able to override any pay secrecy clauses detailed in contracts. It is, therefore, an authorised action to ask colleagues about their level of pay if an employee suspects inequality due to factors such as gender, age and race.

Understanding the definitions of the considerations is important in assessing whether there is an inequality in pay within the workplace. The following details definitions of some of the most common equal pay disputes.

Like work - When two employees' work is broadly similar, and there are no practical or important differences, it is referred to as ‘like work'. These claims tend to be the quickest and most simple to process and complete.

Work Rates as Equivalent - This type of case is only relevant if an employer has completed a Job Evaluation Scheme (JES). A JES tends to be completed by way of ordering jobs into levels or ranks. Employees will be aware if a JES has been completed. An employee will be able to bring a claim against their employer if a JES determines that their rank or grade is lower than an employee who they believe to be on par with.

Work of equal value - This is probably the most complex and lengthy type of claim for equal pay. It might appear that two employees have different jobs, but it could be contested that the value of each role is equal to the company. An employee would have to demonstrate that their skills, efforts, knowledge and responsibilities are equal to those of the other employee in order to have a basis for a claim.

What if it is Discovered that Pay is Not Equal?

If it is found that there is pay inequality within the workplace, the employer is breaking the law. The initial step for an employee should be to raise their concerns with their employer directly, ideally in writing to provide a record. The employer will then respond to help the employee determine whether there is an inequality in pay and if so, what their reasoning may be.

If the situation is not able to be resolved informally and directly with the employer, the case will need to be made via the Employment Tribunal. It will then be down to the Tribunal to determine whether there is an inequality in pay and if the employee will be compensated.

Employees who have been victim to unequal pay are able to claim back lost earnings from up to six years previous to the claim. The case will need to be heard by an Employment Tribunal, who will determine if the case is valid and how much compensation will be paid.

Employees may continue to work in their job while the case is being processed. A case may also be brought to a Tribunal up to six months after an employee has left the company.

What if an Employer Argues a Claim?

Employers are likely to argue that there is reasoning for a difference in pay and that the reasoning is legal. Often, employers will argue that the comparative payee is in a different job or has additional responsibilities.

An employer has a right to defend their actions, and this is their opportunity to highlight any reasons for differences in pay. They will aim to provide legitimate and legal reasons for pay differences to satisfy the Tribunal that the reason is material and not related to areas such as sex, race and age.

There are some genuine and legitimate reasons why one employee may have a different pay to another. They could include factors such as:

• Working hours (unsociable hours often command a higher rate of pay)
• Geographical location
• Qualifications and Experience.

In instances such as those above, a Tribunal is likely to support an employer in their defence and agree that there are substantial and legal reasons for a difference in pay.