Equal Pay Claim Settled for £100,000

24 July 2017

Our Employment Solicitors successfully represented an employee in an equal pay claim achieving a settlement which included compensation of over £100,000 for our client.

Client Situation

Our client, Mrs P, had worked for her employer for over 10 years. For the last 6 years a male colleague who worked in essentially the same role was being paid approximately over £10,000 more a year than her.

How We Helped

We advised Mrs P to raise the matter as part of a formal grievance, which revealed to us that the employer did not have a legal justification for the difference of pay.

The grievance did prompt Mrs P being given a pay rise, which brought her pay in line with her male colleague. Although our client’s pay was increased, she still had losses representing the difference of pay over the last 6 years (which is the maximum length of time an employee can legally claim for).

We started ACAS Early Conciliation on Mrs P’s behalf but the employer did not engage and Early Conciliation concluded without a settlement being achieved. We proceeded to lodge a claim in the Employment Tribunal and informed the employer of this. We invited the employer to make a settlement offer to avoid the time, stress and cost of litigation.

The Outcome

Following communications with the employer we secured an exit package to include compensation for equal pay. Mrs P was able to leave her employer with over £100,000 in compensation.

Equal Pay and the Law

Men and women should receive equal treatment regarding their terms and conditions of employment if they are employed to do ‘like work’, ‘equivalent work’ or ‘work of equal value’.

The equal terms should cover all aspects of pay and benefits, including basic pay, overtime rates, benefits (both monetary and non-monetary) and annual leave requirements.

In order to be able to pursue a claim for equal pay the employee must have a ‘comparator’ of the opposite sex working for the same employer, doing like work of equal value. If there is a genuine reason for the difference in pay then the claim will not succeed.

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