Monday 30 April 2012

Equal Pay Legislation


There has been equal pay legislation in the UK for more than four decades.

The Equal Pay Act (now replaced by the Equality Act 2010) became law in 1970 but direct and indirect discrimination regarding pay against women still persists in the workplace.

Pay gaps widen the higher up the pay scale you look. The recession and government cuts to the public sector are also widening the gap.

The equal pay provisions are complex, and in consequence, the cost of legal proceedings in pursuit of equal pay is beyond the reach of most women. With the issue fees set to be introduced as of April 2013, this will only add an additional burden to potential claimants.

In 2010/11 Employment Tribunals received 218,100 claims, of which only 34,600 were equal pay claims.  Of the claims, 1980 went to a full hearing – 5% of the total. Of those 5%, only 16% succeeded, 84% failed.

However, all is not doom and gloom.

Earlier this month, in the cases of Bury Metropolitan Borough Council v Hamilton and others and the Council of the City of Sunderland v Brennan and others, the Court of Appeal rejected a challenge made by the Councils to a Tribunal’s finding and upheld the original decision made by the Tribunal.

Female council workers (including caterers, cleaners and carers) compared themselves with male council workers (including gardeners, refuse collectors and drivers). Although the female claimants received the same basic pay as their comparators, their overall pay was less because of productivity bonuses which were paid to the male workers.

Both the tribunal and the Court of Appeal found that the bonus schemes were genuinely intended to increase productivity when introduced.  However, the Council’s defence was rejected as the Court found in reality the bonuses were no longer linked with productivity which in turn meant they had become part of the males workers basic pay.

The Court said this was discrimination.

The Court of Appeal judgment is helpful for employees as it is clear that pay differences based on historical factors that no longer apply can be challenged, and it places employers on notice that such reasons should also be kept under careful review.

Anna Power - Solicitor

For further information on Employment Rights, please visit our website or call 0113 245 0733 and ask to speak with our Employment Rights team.