Equal Pay
What Is Equal Pay?
Equal pay means that men and women must receive equal pay for the same or broadly similar work, work rated as equivalent, or work of equal value.
Under the Equality Act 2010, it is unlawful to pay employees differently based on gender. This principle applies to all aspects of pay and benefits, including salaries, bonuses, pensions, and other contractual benefits.
Types of Equal Pay Issues
This occurs when an employee is paid less than another employee of the opposite sex for doing the same or a similar job. For example, if a female employee is paid less than a male colleague for performing the same role with similar responsibilities, this could constitute direct pay discrimination.
If jobs have been rated as equivalent under a job evaluation scheme, the employees in those jobs should receive equal pay. Discrepancies here can lead to equal pay claims.
Even if the work is different, if it is of equal value in terms of the demands of the job (skill, effort, responsibility, and working conditions), employees should be paid equally. Differences in pay for work of equal value can also lead to claims.
The Material Factor Defence
While equal pay claims can arise when there is a disparity in pay between male and female employees performing similar work, employers can defend claims by demonstrating a Material Factor Defence. This defence allows employers to justify the pay difference if they can prove that the disparity is based on a material factor that is not related to gender.
Understanding and applying the Material Factor Defence correctly is crucial in defending against equal pay claims. It requires careful analysis and evidence to ensure that pay differences are justifiable and lawful.
How Can We Help?
At Dutton Gregory, our team of experienced employment law solicitors is here to help you manage and mitigate equal pay issues effectively.
We can conduct audits of your current pay structures to identify any discrepancies or potential equal pay issues. Additionally, we help you develop or update your pay policies to ensure compliance with the Equality Act 2010.
Our team can work with you to assess the risk of equal pay claims within your organisation. We provide proactive measures to address these risks, such as implementing fair and transparent pay practices and conducting regular reviews of pay and job evaluations.
If your organisation faces an equal pay claim, our experienced solicitors are here to provide expert legal representation. We will work closely with you to develop a strong defence strategy, protecting your organisation from the financial and reputational risks associated with equal pay disputes.
We offer customised training sessions designed to educate your HR team and managers about equal pay and how to ensure compliance. Our training covers best practices for pay reviews, job evaluations, and how to handle grievances related to pay disparities.
What Next?
For more information about employment law advice, please contact us using the button below.
Contact Darren Tibble, Head of our Employment Team.
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