Last updated 22/1/13
In this section EqualPayPortal takes you to the European Union and British equality instruments and the guidance associated with them. You will also find information on the obligations on public bodies in Scotland and Wales.
The European Union
The principle that women and men are entitled to equal pay for doing equal work is grounded in European Union law. British domestic law must conform to European Union law, which imposes specific obligations in respect of equal pay which can have direct effect. So, in considering equal pay claims under the Equality Act 2010, the British courts and tribunals must take into account the relevant provisions of the Treaty, relevant Directives and decisions of the Court of Justice of the European Union (formerly the European Court of Justice). If domestic law does not give full effect to these rulings then a woman may be able to rely on European Union law in British Courts.
The Treaty of the Functioning of the European Union
Article 157 of the Treaty of the Functioning of European Union, formerly Article 141 of the EC Treaty, sets out the principle of equal pay for equal work.
The Equal Treatment Directive
The recast Equal Treatment Directive (No. 2006/54/EC) on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation consolidates a number of Directives on gender equality. It restates the importance of the principle of equal pay for work of equal value.
The Code of Practice
There is also a Code of Practice on the Implementation of Equal Pay for Work of Equal Value for Women and Men. Although this dates back to 1996, the practical steps it recommends are still valid.
The Equality Act 2010
The Equality Act 2010 replaces the previous anti-discrimination laws with a single Act. It simplifies the law, removing inconsistencies and making it easier for people to understand and comply with it. The majority of the Act came into force on 1 October 2010. The Equality Act 2010 gives women (and men) a right to equal pay for equal work. It replaces previous legislation on equal pay, including the Equal Pay Act 1970 and the Sex Discrimination Act 1975, and the equality provisions in the Pensions Act 1995. The provisions relating to equal pay are known as ‘the equality of terms’ provisions and are scattered throughout the Act, but are brought together in the Equal Pay Statutory Code of Practice.
The Equal Pay Questionnaire
Section 138 of the Equality Act 2010 enables a woman who believes she is not receiving equal pay to write to her employer asking for information that will help her to establish whether this is the case and if so, what the reasons are for the pay difference.
The equal pay questionnaire is a standard form the woman can use to ask her employer for information. She can also put her questions in a letter, rather than using the form. If her employer fails to answer the questions within eight weeks or answers in an evasive or equivocal way, an Employment Tribunal can draw an inference from that failure or evasion, including an inference that the employer is in breach of the equal pay provisions.
Standard forms for both questions and answers and guidance on their use are available on the Government Equalities Office website.
For employees, the Equality and Human Rights Commission provides a sample questionnaire. Follow the link, then click on ‘sex questionnaire guidance’ then go to pages 58 to 62.
For employers, the Equality and Human Rights Commission provides a guidance note Obtaining Information: the equal pay questions form.
NB The Government has announced its intention to repeal the questionnaire, but the date has not yet been set for repeal.
Equal pay for equal work
Women (or men) can claim equal pay with colleagues of the opposite sex where they are in the same employment and doing:
- Work which is the same or broadly similar (known as ‘like work’)
- Work rated as equivalent under an analytical job evaluation scheme ( known as ‘work rated as equivalent’), or
- Work which is different but which is of equal value in terms of the demands is makes on the jobholders (known as ‘work of equal value’).
Modifying the contract of employment
Where a woman is doing equal work with a man in the same employment, the Equality Act 2010 automatically implies a sex equality clause into her contract of employment, modifying it where necessary to ensure her pay and all other contractual terms are no less favourable than the man’s. The fact that the right to equal pay is grounded in contract law as well as in anti-discrimination legislation safeguards a woman’s right to equal pay in the future, and also gives rise to a six-year entitlement to back-pay (five years in Scotland).
Defending an equal pay claim
There are a number of possible defences for an employer faced with an equal pay claim:
- That the woman is not doing equal work with the man with whom she is comparing herself.
- That the man with whom she is comparing herself is not in the same employment as she is.
- That the work being done by the woman and the man has been rated as unequal under an analytical job evaluation scheme. Using an analytical job evaluation scheme to evaluate jobs across the workplace provides an employer with an automatic defence against a claim for equal pay for work of equal value, and if the woman wishes to challenge the scheme (in
other words, if she wishes to claim that the scheme has discriminated against her) she will have to convince the Tribunal that the scheme is biased against women.
- That the difference in pay is due to a material factor which has nothing to do with her sex. The employer must identify the factor(s) and prove that: it is the real reason for the difference in pay and not a sham or pretence; it causes the difference in pay between the woman and her comparator; it is material: that is, significant and relevant, and it does not involve direct or indirect sex discrimination. Personal differences between the workers concerned, such as experience and qualifications, may be material factors. Other examples of possible material factors are: geographical differences, for example London weighting, unsocial hours, rotating shifts and night working. Whether the defence is made out will depend on the specific circumstances in each case. If the material factor accounts for only part of the variation in pay, the woman is entitled to a pay increase to the extent that the defence is not made out.
Equal pay awards and remedies
If an Employment Tribunal upholds an equal pay claim, the Tribunal may
- make a declaration as to the rights of the woman and/or her employer in relation to the claim brought. For example, a pay rise to the level of the comparator’s pay (including any occupational pension rights) or the inclusion of any beneficial term not in the woman’s contract, and
- order the employer to pay arrears of pay or damages to the person who has brought the claim.
The Employment Tribunal may make a declaration even if it decides not to award any compensation.
Unlike in a claim of sex discrimination, an Employment Tribunal cannot make an award for injury to feelings.
In England and Wales, the Tribunal can award arrears of pay or damages going back not longer than six years before the date that proceedings were started in the Employment Tribunal. In Scotland, the Employment Tribunal can award arrears of pay or damages going back not longer than five years from the date that proceedings were brought in the Employment Tribunal. As in other discrimination cases, equal pay awards can be made subject to interest. An award of arrears of pay will generally only attract interest for about half the arrears period. Interest will be calculated as simple interest accruing day to day in accordance with prescribed statutory rates.
In cases involving occupational pension entitlements, an Employment Tribunal may make a declaration as to the rights of the parties concerned. Where an Employment Tribunal makes a declaration about the terms on which a member of an occupational scheme must be treated, the employer must provide such resources to the scheme as are necessary to secure that person’s rights without further contribution by her or any other members.
The procedure for hearing equal value claims
When the provision for equal pay for work of equal value was introduced into the equal pay legislation, a separate Employment Tribunal procedure specifically for hearing equal value claims, was set out. The procedure has been amended on several occasions and it is necessary to take account both of the original Regulations and all of the subsequent amendments.
The Employment Tribunals (Equal Value) Rules of Procedure, Schedule 6 of the Employment Tribunals (Constitution and Rules of Procedure) Regulations 2004 (SI 2004/1861) set out the original Tribunal procedures for equal pay for work of equal value claims. You can find the Regulations here.
These have been amended by the Equal Pay Act 1970 (Amendment) Regulations 2004 and the Equality Act 2010 (Commencement No 4, Savings, Consequential, Transitional, Transitory, and Incidental Provisions and Revocation) Order 2010
Obligations on public sector bodies across Britain
Section 149 of the Equality Act 2010 provides for the general public sector equality duty. This requires public authorities to have due regard to the need to:
- eliminate discrimination, harassment and victimisation;
- advance equality of opportunity between people who share a protected characteristic and those who do not; and
- foster good relations between people who share a protected characteristic and those who do not.
The duty covers all the protected characteristics including sex, and therefore covers equal pay between women and men.
The Equality and Human Rights Commission is responsible for assessing compliance with and enforcing the Equality Duty. The Commission has powers to issue compliance notices to public bodies that have failed to comply and can apply to the courts for an order requiring compliance. The Equality Duty can also be enforced by judicial review. This can be done by the Commission or any individual or group of people with an interest.
A quick start guide for public sector organisations has been issued by the Government Equalities Office.
Technical guidance on the Public Sector Equality Duty
The Equality and Human Rights Commission has produced a suite of Technical Guidance to explain the duty, outline the requirements of the Equality Act 2010 and the specific duty regulations and provide practical approaches to complying with the Public Sector Equality Duty in England, Scotland and Wales. The Commission states that the guidance provides an authoritative, comprehensive and technical guide to the detail of the law.
The Commission has also issued supplementary guidance for employers in the public sector: What equality law means for you as an employer: pay and benefits. Word | PDF | Welsh language Word. NB As the last mentioned guidance ranges well beyond equal pay, and the information on pay and benefits is poorly presented, you would be well-advised to stick to the advice given in The Code of Practice on Equal Pay.
Differences across public bodies operating in England, Scotland or Wales in respect of equal pay
While the general duty applies to England, Scotland and Wales, the specific duties are devolved to the Scottish and Welsh Assembly Governments, and this results in differences across the three nations in the obligations on public bodies in respect of equal pay. In particular, public bodies in Scotland and Wales must consider pay gaps across all of the protected groups and not just between women and men.
Equal pay and public bodies in Scotland
The Scottish Parliament has issued The Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 setting out the obligations on public bodies in Scotland.
An independent study Equal Pay Gaps in public bodies in Scotland provides an analysis of what Scottish councils and health boards have recently been doing.
Equal pay and public bodies in Wales
The Welsh Assembly Government has issued The Equality Act 2010 (Statutory Duties) (Wales) Regulations 2011 setting out the obligations on public bodies in Wales.
Getting hold of case decisions
It is difficult for people who are not lawyers to get hold of case decisions. In theory all judgements are publicly available, but in practice they can be difficult and sometimes costly to access. Employment Tribunal decisions, while available from the Registry of Judgments (see below), are not routinely reported because unlike cases decided on appeal, they set no legal precedent. While some decisions cover much the same ground, others can make useful reading, particularly for reward managers and other equal pay practitioners, as they give a steer as to what tribunals expect from an employer in terms of implementing equal pay in the workplace. The following paragraphs offer a range of suggestions as to how to get hold of judgements both at Employment Tribunal level and on appeal, but note that almost all sources require a case name. If you need information about judgements on a regular basis you may find that taking out a subscription to a specialist journal is the most efficient way for you to obtain this.
Employment Tribunal cases, England and Wales
The Registry of Judgements – if you know the name of the case
If you know the names of the parties in the judgement you are looking for, you can get a copy either by going in person to the tribunal regional office in Bury St Edmunds, or by sending a cheque for £10 and naming the judgement you want a copy of. Additional copies are available at a cost of £5 per copy. You will need to provide the names of the parties, the case reference number, the tribunal office where the case was heard, and your address and telephone number
The address to write to is: Registry of Judgments, 1st Floor 100 Southgate Street, Bury St Edmunds, Suffolk, IP33 2AQ. Telephone: 0845 795 9775 (9am to 5pm, Monday to Friday)
The Registry of Judgements – if you do not know the name of the case
If you do not know the name of the case, or want to look at equal pay judgements in general, you will need to go to the Bury St Edmunds office in person and ask to see the Public Register. However, as the Register is not indexed by grounds of claim, and as judgements in equal pay claims are few in number, it can take a couple of days or more to find what you are looking for. You will need to interrogate the data base using relevant search terms, such as equal pay, bonus payments, equality of terms, private sector, public sector, and so on.
Employment Tribunal cases, Scotland
In Scotland the Public Register of Judgements is held in Glasgow and the process for getting hold of a copy of a judgement is the same as for England and Wales.
The address to write to is: Central Office of Employment Tribunals (Scotland), The Eagle Building, 215 Bothwell Street, Glasgow, G2 7TS.Telephone: 0141 204 0730
Alternative sources for Employment Tribunal judgements
Law firms may put the judgements or summaries of judgements of cases that they have been involved in on their websites, so if you know the name of the case, a web-search may come up with the decision.
For a summary of recent employment tribunal decisions on equal pay cases in the private sector only, read Equal Pay Cases and Pay Audits , a report for the Government Equalities Office by Incomes Data Services. The report contains a useful appendix of case summaries.
Employment Appeal Tribunal Judgements
Employment Appeal Tribunal judgements in equal pay cases are available from the Justice website. As with Employment Tribunal decisions, you will need to know the name of the case you are interested in. Copies of judgments which have been transcribed, but are not on this website may be obtained from HM Courts and Tribunals Service London office. There is a copying charge of £10 for one judgment and £5 for each additional judgment requested at the same time.
The address to write to is: Employment Appeal Tribunal, Second Floor , Fleetbank House , 2-6 Salisbury Square , London EC4Y 8JX . Telephone: 020 7273 1041 (9.00 -16.00 Monday to Friday)
Judgements from the Court of Appeal, Court of Session, Supreme Court & Court of Justice of the European Union
For cases heard in England and Wales, the judgements section of the Judicial Office website usually lists decisions within 48 hours of the judgment being handed down, but the British and Irish Legal Information Institute (BAILII) is by far the most comprehensive and accessible source of judgements and covers Scotland as well. BAILII also enables you to access judgements from the Court of Justice of the European Union.
For cases heard in Scotland, the Judiciary of Scotland site summarises key Scottish decisions.
Commercially available information about judgements in equal pay cases
Equal Opportunities Review is the best source of information on equal pay cases, not only because its focus is solely on discrimination issues, but also because it summarises noteworthy Employment Tribunal decisions. With a fully searchable website, holding an extensive archive of all 200 issues, Equal Opportunities Review offers its subscribers accurate, authoritative and up to date set of information. Judgements in equal pay cases appear in the case reports section of the journal, and also in the annual publication, Discrimination: A Guide to the Relevant Case Law, which is issued free to subscribers. Case reports include an assessment of the implications of the case.
Equal Opportunities Review’s sister publication Equality Law Reports, providescase reports on all areas of discrimination law.
Industrial Relations Law Reports offers up-to-date and accurate full-text law reports, and is comprehensively indexed. Coverage is fast (usually within 48 hours of a judgement being handed down) and includes the most significant employment law cases.
IDS (Incomes Data Services) provides subscribers with information and analysis across the employment field, through a range of publications, online resources, conferences, training and research in several areas, including pay, employment law and diversity.
Freely available commercial information on key decisions
Many leading law firms offer free email newsletters which may provide summaries of and commentary on key decisions. Look for firms specialising in equal pay,discrimination and employment law.