Equal Pay Claim For Same Job – Is it illegal in the UK?
This week more than 3,500 current and former workers at leading high street retailer Next have won the final stage of a six-year legal battle for equal pay. Next could now face costs in excess of £30m+ with thousands of pounds payable to former and current Next employees (mainly women) who should not have been paid the lower rates than employees in warehouses, where just over half the staff are male. The average salary loss is more than £6,000 each for former and current Next employees.
The question is why did Next pay lower rates for some of its employees when they were doing the same job as other employees? Is this legal and what about retailers and companies who have operated in the same way as Next, and underpaid employees who were doing the same job as their co workers, yet received less pay. Birmingham City Council’s equal pay liability could be in the region of £650 – 760 million cited in its latest budget, with former and current workers due huge pay outs.
More than 112,000 store staff across the five major supermarkets, Asda, Tesco, Sainsbury’s, Morrisons and Co-op are all bringing similar equal pay claims.
What does the law say
The gov.uk website says, “Equal pay is covered by the Equality Act 2010, and requires employers to pay men and women the same for work of equal value.” According to ACAS “By law, men and women must get equal pay for doing ‘equal work’. This is work that equal pay law classes as the same, similar, equivalent or of equal value.”
When differences in pay might be allowed
Differences in pay might be allowed in some circumstances. For example, it might be possible for someone to be paid more than someone of the opposite sex who does similar work because:
- qualifications – they’re better qualified
- location – if they live in London for example, costs are higher
- shifts – they work different shifts and the employer has good reasons to pay for a particular shift
If you are not getting equal pay – what you should do
Talk to your employer – Explain that you are doing the same job as someone, yet receive a lower income. Explain that you and the other individual or individuals are qualified to the same level and operate the same shifts
Gather evidence – compare your payslips and or contract with others. Are they being paid a high rate or income than you for the same job? Provide this evidence to your employer and ask them to explain why the other individual is paid a high rate for the same job. If this other person or persons happen to be a male employee, then you will have a very good case for an equal pay claim.
Formally raise an issue with your employer
Contact your line manager first. If you cannot do this or do not feel comfortable doing this, ask to speak with HR or management. You can also back this up with an email or send a hand written letter. Its always best to get a second opinion before you send your email or letter. There may be a genuine reason why a fellow employee receives a higher income than you. Your letter should be to request a face to face meeting regarding your pay and or issues relating to a possible equal pay issue.
How to make an equal pay claim
If you are unable to resolve the equal pay claim, you should make a claim to an employment tribunal.
If you want to make a claim to an employment tribunal, you must inform ACAS first. The good news is that you do not have to pay a fee to make a claim to an employment tribunal. In the UK, the time limit for making an equal pay claim depends on the type of case and whether it’s made in the employment tribunal or civil courts.
Employment tribunal: The normal time limit is 6 months after the end of employment.
Civil courts: The time limit is 6 years from the end of employment.
Compensation
If your claim is successful, you’re entitled to have your pay increased to an equal level. Usually, an employment tribunal will also award back pay or compensation, for up to a maximum of six years. The average salary loss is more than £6,000 each for former and current Next employees. The average pay out for an equal pay claim in the supermarket industry is around £10,000 with some claimants receiving as much as £60,000+.
Conclusion
Speak to your employer today. If you believe that you are not or have not been receiving equal pay as someone who is both: the opposite sex to you and or doing equal work for the same employer – you should speak to your employer to try and resolve the issue.