Equal Pay Act

The Equal Pay Act 1970 makes it unlawful for employers to discriminate between men and women in terms of their pay and conditions where they are doing the same or similar work; work rated as equivalent; or work of equal value.

The Act applies to both men and women but does not give anyone the right to claim equal pay with a person of the same sex. In other words, any comparison must be with a person of the opposite sex.

The Equal Pay Act was passed in 1970, when the pay gap between men and women stood at 37%. By the time the Act came into force in 1975, it had closed to 30%.

The Equal Pay Act addresses one aspect of the gender pay gap — that of unequal pay. The Government is helping to tackle wider causes of the pay gap such as job segregation and differences in work experience. More

What the law says

The purpose of the Equal Pay Act 1970 is to eliminate discrimination between men and women in terms of their pay and contracts of employment where they are doing:

• work that is the same or broadly similar;

• work rated as equivalent under a job evaluation study;

• work of equal value in terms of the demands made on them under headings such as effort, skill and decision-making.

What is covered under equal pay?

The Equal Pay Act gives men and women the right to equality in the terms of their contract of employment. It covers both pay and other terms and conditions such as piecework, output and bonus payments, holidays and sick leave.

European law has extended the concept of equal pay to include redundancy payments, travel concessions, employers’ pension contributions and occupational pension benefits.

This means that even though a man and a woman are receiving the same basic rate of pay there may still be a breach of the principle of equal pay because other benefits (such as a company car, private health care etc) are not provided on an equal basis.

The Equal Pay Act applies to pay or benefits provided by the contract of employment. The Sex Discrimination Act covers non-contractual arrangements including benefits such as access to a workplace nursery or travel concessions.

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Who is comparable?

In order to bring a claim, a person must compare themselves with an actual person of the opposite sex who is treated more favourably and is shown to be employed on equal work. This person is their "comparator".

They can compare themselves with a predecessor or successor in their job.

The comparator must be in the same employment as the person making the equal pay complaint. Under the Equal Pay Act the term "same employment" broadly means that the comparator should be employed by the same or an associated employer. However, the term has to be interpreted in the light of European Community law and the decisions of domestic courts and European Court of Justice.

The employer’s defence for differences in pay

Employers do not have to provide the same pay and benefits for equal work, if they can prove that the difference in pay is genuinely due to a factor other than the difference in sex. It is for the employer to show that such a factor exists and that it is the real reason for the difference.

For example, in some circumstances different geographic locations may justify a difference in pay, or the operation of market forces, such as the need to recruit for particular jobs or the need to retain employees occupying particular jobs. The employer must be able to show that all of the difference of pay is genuinely attributable to that factor.

The employer must also show that the factor is “objectively justified” if he or she relies upon a factor that could be indirectly discriminatory because it affects a greater proportion of workers of one sex than the other.

For example, rewarding workers for being prepared to work longer hours at short notice may indirectly discriminate against women workers with childcare responsibilities.

To show objective justification the employer must show that the difference in pay corresponds to a real need of his or her business, is necessary to achieve that business objective, and that it is not out of proportion to the objective.

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Making a complaint

In the first instance it is likely to be in everyone’s interest to try and resolve any problems within the workplace.

If a person has an equal pay complaint they can use the equal pay questionnaire to find out whether they have received equal pay.

Anyone who considers that they have been discriminated against under the Equal Pay Act can make a claim to an employment tribunal.

There is no age or length of service requirement to present a claim, and the applicant does not have to work any specified number of hours.

There are strict time limits within which a claim must be brought. An application can be made:

• at any time while the applicant is doing the job to which the claim relates; or

• within 6 months of leaving that job.

• The time limit for bringing an equal pay claim can be extended in cases where the employer has deliberately concealed information or the applicant has been under a disability. See Workplace Guidance on Amendments to the Equal Pay Act and Sex Discrimination Act (July 2003)

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Sources of information and advice

• The Equal Opportunities Commission’s (EOC) website includes advice specifically for complainants. Advice for employers on good equal pay practice is provided in the EOC’s Code of Practice on Equal Pay. The EOC has also produced an Equal Pay Kit that will make it easier for employers who want to undertake a pay review to ensure that their pay system is fair. Information can be obtained through their helpline on 0845 601 5901 or their website: www.eoc.org.uk

• Acas can help both parties to try to resolve disputed claims and is willing to help in situations where a worker feels they have grounds to complain either before or after an application has been made to an Employment Tribunal. Acas offices are listed in Yellow Pages or can be found at www.acas.org.uk

• For further information on employment tribunals call the Employment Tribunals Service enquiry line on 0845 795 9775, minicom 0845 757 3722 or go to their website on www.employmenttribunals.gov.uk

• Employers can obtain information on equal pay through Equality Direct on 0845 600 3444 or www.equalitydirect.org.uk