Equal Pay Dispute
Are you being paid less than your colleagues for doing the same job? In today's workplace, pay disparity is not just unfair—it's illegal.
challenging pay disparity can be emotionally draining and many employees worry about potential backlash from their employer when raising an equal pay dispute, but standing up for your rights is essential to ensure a fair and equitable workplace.
At Lawhive, our experienced employment lawyers are well-versed in equal pay disputes and can provide clear, actionable guidance tailored to your specific situation.
Contact us today to discuss your equal pay dispute and get a free quote for the services of a specialist lawyer.
What is equal pay?
Equal pay is the legal principle that men and women should receive equal compensation for performing the same job or work of equal value.
This concept is enshrined in the Equality Act 2010, which aims to eliminate gender pay disparities and promote fairness in the workplace.
What are the rules for equal pay?
The Equality Act 2010 sets out the legal framework to protect employees from pay discrimination based on gender. It applies to all employees, including full-time, part-time, permanent, temporary, and fixed-term workers.
Under the Act, employees doing the same work, work rated as equivalent, or work of equal value should receive equal pay. These rules cover all forms of remuneration, including wages, bonuses, and benefits.
What is an equal pay dispute?
An equal pay dispute can come about when an employee believes they are not receiving equal pay for doing the same work, work rated as equivalent, or work of equal value.
This can happen if an employee finds out that a colleague of the opposite gender is being paid more for doing the same job, similar work, or work of equal value.
In such cases, the employee can raise a dispute with their employer. If the issue can't be resolved through internal discussions, the employee may need to take legal action to ensure they receive fair pay.
This can involve making a formal complaint, seeking mediation, or going to an employment tribunal.
Common causes of equal pay disputes
Equal pay disputes can arise because of:
Gender bias
Legacy pay structures that have not been updated to reflect current equal pay standards
Lack of transparency in pay policies or clauses
Ineffective or biased job evaluation methods
Inconsistent application of job evaluation criteria across genders.
Examples of equal pay disputes
Same job, different pay
A female project manager discovers she is being paid less than a male project manager in the same company, despite having the same responsibilities and experience.
Similar work, different pay
A female employee in a customer service role finds out that a male colleague in a slightly different but similar customer support role is being paid more, even though both roles require similar skills and responsibilities.
Work of equal value, different pay
A female HR manager is paid less than a male IT manager, even though both roles have been evaluated to be of equal value in terms of responsibility and required expertise.
How do you know if you have an equal pay claim?
To decide if you have an equal pay claim, you need to compare your pay with that of a colleague of the opposite gender who is doing the same job or work of equal value. This means looking at all aspects of your pay, including basic salary, bonuses, overtime, and other benefits.
If you find a significant difference in pay and there is no valid reason for it, you may have an equal pay claim. However, it's important to note that there may be valid reasons for pay differences that are unrelated to gender such as:
As such, you should consider if any of these legitimate reasons apply to your situation.
What evidence is required in an equal pay dispute?
To bring a successful equal pay dispute, you need compelling evidence that shows you are being paid less than a colleague of the opposite gender for performing the same job, similar work, or work of equal value.
Types of evidence that may be helpful in an equal pay dispute include:
Pay slips
Your employment contract
Job descriptions
Performance reviews or appraisals
Formal job evaluation scheme reports
Company pay policy or guidelines
Details of the company's pay structure and scales
Evidence of pay disparities
Market salary surveys or industry benchmarks.
Your evidence should demonstrate the pay disparity and support your claim. A solicitor can help you in collecting and presenting the necessary evidence to strengthen your case.
How to make an equal pay claim
If you believe you are being paid less than a colleague of the opposite gender for the same job, similar work, or work of equal value, you should first raise a formal complaint through your employer's internal grievance procedure.
Often, equal pay disputes are resolved internally without the need for litigation either through the grievance process, mediation, or settlement negotiations. However, if internal resolutions fail, you can file a claim with the Employment Tribunal.
Before filing a claim with the employment tribunal, you must notify the Advisory, Conciliation, and Arbitration Service (Acas) and go through the early conciliation process.
If the tribunal finds in your favour, it can order your employer to rectify the pay disparity and award you compensation for lost wages.
How long do you have to make an equal pay claim?
You must make an equal pay claim within six months of the last date you were paid unequally.
If you are no longer employed, this period extends to six months from the end of your employment.
What happens during an equal pay tribunal hearing?
During an equal pay tribunal hearing, both parties will make opening statements outlining their case. You and your employer will present your evidence, including documents, witness statements, and any other relevant information. Witnesses may be cross-examined by the opposing party’s representative.
After both sides have presented their evidence and arguments, they will make closing statements summarising their case. The tribunal will then consider the evidence and make a decision, which will be communicated to both parties.
What are the possible outcomes of an equal pay dispute?
The possible outcomes of an equal pay dispute include having your claim upheld or dismissed.
If your claim is upheld, you may receive compensation for lost earnings and any other damages. If your claim is dismissed, no compensation will be awarded.
Alternatively, the parties may agree to a settlement at any stage during the process, which could include compensation and changes to pay practices.
What compensation can you receive for an equal pay claim?
Compensation for an equal pay claim can include payment of the difference in pay between you and your comparator, which can be backdated for up to six years.
You may also receive interest on the back pay amount, as well as compensation for any financial losses or damages suffered as a result of the unequal pay.
Can you settle an equal pay dispute out of court?
Yes, many equal pay disputes are settled out of court. Settlement can occur at any stage during the dispute process, including during early conciliation or even after a claim has been filed.
Settlement agreements typically involve the employer agreeing to pay compensation and sometimes making changes to pay practices.
What are the common defences employers use against equal pay claims?
Common defences employers use against equal pay claims include the material factor defence, where they argue that the pay difference is due to a material factor unrelated to gender, such as differences in experience, qualifications, or performance.
Employers may also claim that the jobs being compared are not truly equal in terms of responsibilities and duties, or assert that market conditions justify the pay difference.
How can employers prevent equal pay disputes?
Employers can prevent equal pay disputes by conducting regular pay audits to ensure compliance with equal pay laws. Implementing transparent pay policies and ensuring they are consistently applied can also help.
Providing training for managers on equal pay and discrimination laws and addressing any pay concerns raised by employees promptly and fairly are also crucial steps.
Why is equal pay important?
Equal pay is a fundamental principle that promotes fairness and equity in the workplace.
It's important because it:
Helps eliminate gender discrimination.
Reduces the gender pay gap
Enhances job satisfaction
Reduces turnover
Attracts talent
Improves productivity
Promotes social justice
Contributes to broader societal change.
Get legal help with an equal pay dispute from Lawhive
It can be emotionally challenging to confront equal pay disparities. But here at Lawhive, we are committed to providing accessible, affordable legal support to help you assert your rights.
Our team of experienced employment lawyers will provide you with clear, practical guidance related to equal pay and empower you to take the first step toward achieving the fair and equal pay you deserve. Whether you need help gathering evidence, negotiating with your employer, or filing a claim with the Employment Tribunal, we are here to support you every step of the way.
Contact us today to speak with our Legal Assessment Team and get a free, no-obligation quote for the services of a specialist equal-pay lawyer.