Definition
The legal right under the Equality Act 2010 for men and women to receive equal pay for equal work, which includes like work, work rated as equivalent, and work of equal value.
UK Context
Equal pay is governed by sections 64-80 of the Equality Act 2010. Claims can be brought in the employment tribunal with up to six years of back pay (five in Scotland). Major equal pay litigation has affected UK local authorities, the NHS, supermarkets, and other large employers. The Equality and Human Rights Commission provides a statutory code of practice on equal pay.
Best Practices
- Conduct regular equal pay audits to identify and address unexplained pay gaps proactively
- Use a robust, transparent job evaluation scheme to establish pay structures based on job content
- Document the material factor justification for any legitimate pay differences between comparable roles
- Train managers involved in pay decisions on equal pay principles and unconscious bias
- Consider publishing voluntary equal pay reports to demonstrate commitment to pay fairness
Frequently Asked Questions
What is the difference between equal pay and the gender pay gap?
Equal pay is the legal right to the same pay for equal work, regardless of sex. The gender pay gap is the percentage difference between the average earnings of men and women across an entire organisation. An employer can have no equal pay issues (everyone doing equal work is paid equally) but still have a gender pay gap if more men are in senior, higher-paid roles.
How do I bring an equal pay claim?
You must identify a comparator of the opposite sex who does equal work (like work, work rated as equivalent, or work of equal value) but receives better pay. Claims are usually brought in the employment tribunal. You should seek legal advice and consider contacting ACAS for early conciliation before filing a claim.
What is a material factor defence?
If an employee identifies a valid comparator, the employer can defend the pay difference by showing it is due to a material factor that is not related to sex. Examples include geographical location, relevant qualifications, market forces for hard-to-fill roles, seniority, or performance. The factor must be genuine and proportionate.