Equal pay

The Equal Pay Act 1970 (EPA) provides that discrimination between the sexes in the terms of their contracts of employment is unlawful. This typically occurs in matters such as salary, bonus payments and benefits

The EPA has been criticised because its provisions are too complex and it takes many years for claims under the Act to reach a conclusion

The EPA protects males as well as females and it benefits employees under a contract of employment as well as self-employed people under a contract for services. It does not apply to individuals who work wholly or mainly outside Great Britain nor does it apply to members of the armed forces

The EOC has recently published a Code of Practice on Pay, which aims to provide practical guidance on good practice in relation to equal pay, which includes a suggested equal pay policy.

Meaning of equality

An individual can claim equality if he or she can establish one of the following :

That he or she is carrying out work which is the same or broadly similar to work being carried out by someone of the opposite sex in the same employment; or

That he or she is carrying out work which has been rated as equal through a job evaluation study, to work being carried out by someone of the opposite sex in the same employment; or

That he or she is carrying out work, which is of equal value to the work of someone of the opposite sex in the same employment

Comparison

The comparison must be with a person of the opposite sex who exists (or has existed) who is doing like work, work graded as equal or work of equal value and who is employed by the same employer (or an associated employer) either at the same establishment or at an establishment within Great Britain where, in genera~ common terms and conditions are observed

Defense

An employer can successfully defend a claim under the EPA if it can :

Prove that the work is not like or similar, not rated as equal or not of equal value; or

Prove that the difference between the complainants contract and the comparison contract is genuinely due to a material factor, which is not the difference in sex; this requires that the employer show the reason for the factor and that the factor identified objectively justifies the difference n the contracts.

 

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