Equal Pay

It is an absolute scandal that women working full time only earn on average 81% of what men working full time earn. Women working part time earn even less.

This state of affairs exists even though the Equal Pay Act has been around for 30 years. This Act is designed to ensure that men and women working for the same employer should be paid the same and have the same benefits for doing work of equal value.

The law does not mean that men and women have to be paid the same; it means that employers cannot pay a woman less than a man simply because she is a woman.

Old fashioned ideas of “women’s work” and “the man is the breadwinner and needs a higher salary” should be consigned to the scrapheap.

The problem with the Equal Pay Act is that the simple concept of equal pay for work of equal value has proved to be very difficult to pass into laws that are easy to use in practice. In fact, the Equal Pay Act is one of the most confusing in the area of employment law.

Caroline is taken on as a Clerical Assistant at a salary of £14,500 a year by an old fashioned company. Talking to Michael, another Clerical Assistant, over coffee one morning she is very annoyed to learn that he is paid £15,500. As far as she is concerned, they both do the same job. Caroline is so upset that she complains to Arthur, her Line Manager, but he doesn’t know what all the fuss is about and tells her not to worry, he will see what he can do for her at the next pay review which is due in December. Caroline is not happy but decides to wait and see what happens. In December her pay goes up by 3% as does Michael’s. This means the gap is now £1,030. Caroline does not resign but she does make a claim to an Employment Tribunal under the Equal Pay Act.

Paul, the Managing Director, is affronted when the claim lands on his desk and wants to sack Caroline. His lawyers tell him that this would be a very expensive mistake, and ask him why there is a pay difference between Caroline and Michael when they are doing the same job.

This is an important question because if the pay differential is for a good reason, unconnected with the fact that Caroline is a woman, the Company will have a sound defence. However, it is for the Company to prove.

Examples of reasons that would justify paying a man more than a woman are: seniority, greater experience or greater skill.

In Caroline’s case there is no reason to justify the pay differential but Paul insists on defending the claim. The Company loses. The Employment Tribunal make an order declaring Caroline’s rights, equalise her rate of pay to the same as Michael’s and award her compensation for arrears of pay (arrears of pay of up to six years can be awarded).

If you are being paid less than someone of the opposite sex doing the same job, an equivalent job or a different job of equal value in terms of things like effort and skills, ask your employer why.

Employers asked such a question should give proper consideration to the answer. Having done so, they should not try and justify the unjustifiable but on the other hand, not be frightened of defending claims when they have a good defence.

Published 27/09/2006.