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Equal pay
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Equality Act 2010
In this factsheet
What is meant by equal pay?
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The law gives a woman the right to be paid the same as a man (and vice-versa) for:
like work, or
work rated as equivalent by analytical job evaluation study, or
work of equal value.
Like work is two employees who are doing the same or very similar roles.
http://www.cipd.co.uk/hr-resources/factsheets/equal-pay.aspx
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Work rated as equivalent could be totally different jobs which have been given the same rating as the
result of an analytical job evaluation scheme.
Work of equal value is when there are two jobs that are very different, but the employee claims that
they require a similar level of skill and ability. For example, a female cook comparing her work to that
of painters, insulation engineers and joiners who work for the same organisation.
The right to make a claim under equal pay legislation applies to employees, and also to anyone with a
contract personally to carry out any work or labour.
To bring a claim before an employment tribunal for breach of the equal pay legislation, an applicant
must point to a comparator. A comparator is a person of the opposite gender, working for the same
employer, doing like work (or work rated as equivalent, or work of equal value) who is paid more or has
more beneficial terms and conditions of employment, than the person bringing the claim.
The comparator can be someone working for the employer at the same time or in the past (a
predecessor) but not someone employed afterwards (a successor). A comparator may even work for
another employer as long as the inequality in pay is attributable to a single source (for example, within
the public sector where there are employees doing similar work in several different locations). Under
the Equality Act, if a woman cannot find an actual comparator, she can consider a sex discrimination
claim instead.
The law doesn't allow a contract of employment to be considered as more or less favourable as a
whole than that of a comparator so it's not a defence to a claim to say that a lower hourly rate of pay
for one person is compensated for by, for example, a better annual holiday entitlement. The contracts
of employment of the claimant and the comparator need to be compared side-by-side and clause by
clause. The claimant can effectively pick and choose the most beneficial provisions from their own
and the comparators contracts.
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The employer has a defence to an equal pay claim if it can show that, although men and women are
being paid differently for the same or similar work, the reason is due to a material factor. This material
factor must not itself contain any element of sex discrimination. A good example of a material factor
would be a London Weighting allowance.
The material factor defence can succeed only if the material factor itself does not put one sex at a
disproportionate disadvantage. If there is such a disadvantage, it has to be objectively justifiable as a
proportionate means of achieving a legitimate aim. For example, if the material factor was that the man
was more experienced than the woman and the woman would find it more difficult to gain the
experience because of career breaks for childcare reasons, then the employer would have to show
that it was justifiable to reward the additional experience by paying the man more.
Difficulties arise when the claim is for work of equal value between a woman and a man doing different
jobs. The fact that there are historical reasons for the different pay levels is not sufficient to establish
the defence. However, an employer might be able to show that the wage differences are a result of
skill shortages or for night rather than day work.
In areas such as local government and the NHS, there is often a long history of women working in
comparatively poorly-paid areas of work, whose jobs have subsequently been found to be of equal
value to work done by more highly paid men. Similar claims have arisen in the private sector too, for
example in supermarkets with male warehouse staff being paid more than female staff working in the
supermarket. Where women have not been adequately compensated for unequal pay in the past, they
may bring individual claims against employers for back pay.
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CIPD viewpoint
The causes of inequalities in pay between men and women are complex and go beyond direct
discrimination. For example issues such as career choices, part time working and opportunities to earn
bonuses and overtime and promotion can have a causal effect. This is why it is common sense and
good management practice for employers to scrutinise their approaches to reward in a holistic way.
Spotting unjustifiable differences in the earnings of male and female employees can help surface
underlying indirect discrimination which may otherwise go unnoticed and stop employers making the
best use of female talent. CIPD was a key stakeholder in influencing the Think, Act, Report initiative.
Although this initiative did not lead to a significant increase in voluntary pay gap reporting, proactive
employers have been given the opportunity to investigate and improve any gender pay gaps before
disclosure becomes mandatory.
Useful contacts
Acas - Equal pay
GOV.UK - Employers: preventing discrimination
Equality and Human Rights Commission
Government Equalities Office
Equal Pay Portal
European Commission's Equality Pays Off project: gender pay gap
References
1. OFFICE FOR NATIONAL STATISTICS. (2015) Annual Survey of Hours and Earnings, 2015
Provisional Results. London: ONS. Available at: http://www.ons.gov.uk/ons/rel/ashe/annualsurvey-of-hours-and-earnings/2015-provisional-results/index.html
2. ACAS (2014) Asking and responding to questions of discrimination in the workplace: Acas
guidance for job applicants, employees, employers and others asking questions about
discrimination related to the Equality Act 2010. London: Acas. Available at:
http://www.acas.org.uk/media/pdf/m/p/Asking-and-responding-to-questions-of-discrimination-inthe-workplace.pdf
3. EQUALITY AND HUMAN RIGHTS COMMISSION. (2011) Equal pay: statutory code of practice.
London: EHRC. . Available at: http://www.equalityhumanrights.com/publication/equal-paystatutory-code-practice
4. EQUALITY AND HUMAN RIGHTS COMMISSION (2010) Equal pay audit toolkit [online].
Available at: http://www.equalityhumanrights.com/private-and-public-sector-guidance/employingpeople/equal-pay/equal-pay-audit-toolkit
5. GOVERNMENT EQUALITIES OFFICE. (2011) Think, Act, Report framework. London: Home
Office. Available at: https://www.gov.uk/government/policies/creating-a-fairer-and-more-equalsociety/supporting-pages/think-act-report
http://www.cipd.co.uk/hr-resources/factsheets/equal-pay.aspx
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6. ACAS. (2011) Voluntary gender equality analysis and reporting: action for workplaces in the
private and voluntary sectors. London: Acas. Available at: http://www.acas.org.uk/index.aspx?
articleid=3439
7. GOVERNMENT EQUALITIES OFFICE. (2011) Voluntary gender equality reporting: baseline
report. London: Home Office. Available
at: https://www.gov.uk/government/publications/voluntary-gender-equality-reporting-baselinereport-2011
Further reading
Books and reports
RUBENSTEIN, M. (2015) Discrimination: a guide to the relevant case law. 28th ed. London: Michael
Rubenstein Publishing.
WOMEN AND WORK COMMISSION (2009) Shaping a fairer future: a review of the recommendations
of the Work and Women Commission three years on. London: The Commission.
Visit the CIPD Store to see all our priced publications currently in print.
Journal articles
CHARLTON, J. (2015) Gender pay gap: how to prepare for new regulations. Employers' Law.
September. pp12-13.
GILBERT, K. (2012) Promises and practices: job evaluation and equal pay forty years on! Industrial
Relations Journal. Vol 43, No 2, March. pp137-151.
WELFARE, S. (2010) Reporting gender pay gaps. IRS Employment Review. 5 March. 8pp.
WILD, S. (2015) Preparing for an audit. Employers Law. November. pp18-19.
CIPD members can use our online journals to find articles from over 300 journal titles relevant to HR.
Members and People Management subscribers can see articles on the People Management website.
This factsheet was last updated by Lisa Ayling, solicitor and employment law specialist, and by CIPD
staff.
http://www.cipd.co.uk/hr-resources/factsheets/equal-pay.aspx
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