The principle of equal pay for equal work is enshrined in the Equality Act 2010. This Act consolidates previous legislation, including the Equal Pay Act 1970 and the Sex Discrimination Act 1975. Under the Equality Act, men and women must receive equal pay for doing equal work, which is defined as work that is the same, similar, equivalent, or of equal value. The Act implies a sex equality clause into employment contracts, ensuring that pay and conditions are no less favourable for one gender compared to the other.
Types of equal work
Equal work under the Equality Act 2010 is categorized into three types:
Like Work: Work that is the same or broadly similar.
Work Rated as Equivalent: Work rated as equivalent under a job evaluation scheme.
Work of Equal Value: Work that is different but of equal value in terms of effort, skill, and responsibility.
Employer obligations
Ensuring compliance
Employers are required to eliminate discriminatory pay practices and ensure pay equity across genders. This includes conducting regular pay audits, maintaining transparent pay structures, and ensuring that job descriptions are up-to-date and accurately reflect the work being done. Employers should also have an equal pay policy in place and consult with trade unions or employee representatives when necessary.
Defending claims
If a pay disparity exists, employers must demonstrate that the difference is due to a material factor unrelated to gender. This could include factors such as geographical location, market forces, or specific skills and qualifications. The burden of proof lies with the employer to show that these factors are genuine and not a pretext for discrimination.
Case law
Asda Stores Ltd v Brierley
In the landmark case of Asda Stores Ltd v Brierley, the Supreme Court ruled that female store workers could compare their pay to male depot workers. The court found that if common terms apply at both establishments, even if not identical, cross-establishment comparisons could form the basis of a successful equal pay claim. This case underscores the importance of ensuring that pay practices are consistent across different parts of an organisation.
Practical steps for employers
Conducting pay audits
Scope and information: Decide the scope of the audit and identify the necessary information.
Job evaluations: Conduct job evaluations to measure the value of different jobs.
Data collection: Collect and compare pay data to identify any significant pay inequalities.
Action Plan: Develop an action plan to address any identified pay disparities.
Responding to employee inquiries
Investigate: Read and investigate the employee's statement and questions.
Evaluate: Decide if the work is equal and if there is an objective justification for any pay differences.
Respond: Provide a detailed response, sharing as much information as possible and explaining any decisions made.
Additional considerations
Gender pay-gap reporting
Employers with 250 or more employees are required to report their gender pay gap data annually. This reporting helps identify and address any systemic pay disparities within the organisation.
Best practices
Transparency: Maintain transparent pay and grading systems.
Consistency: Ensure consistency in pay decisions and job titles.
Regular Reviews: Conduct regular reviews and audits of pay practices to ensure ongoing compliance.
By adhering to these guidelines and legal requirements, employers can foster a fair and equitable workplace, minimising the risk of equal pay claims and promoting gender equality.
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