In recent months, the issue of sex discrimination claims related to unequal pay has come to the forefront, with significant implications for both employers and employees. The recent settlement by Birmingham City Council, which amounted to an estimated £760 million, has highlighted the urgency of addressing historical pay disparities. This blog aims to provide guidance for employers and employees who may be dealing with potential claims.

Understanding the Context

Birmingham City Council’s settlement was the result of a long-standing dispute where female-dominated roles, such as cleaners and care workers, were historically paid less than their male counterparts in roles like waste collection. This case has set a precedent, encouraging workers across the country to examine their own pay structures and seek justice for similar disparities. The GMB union expects settlements with up to six more councils this year, indicating that this issue is widespread.

Guidance for Employers

  1. Conduct Thorough Pay Audits: Employers should proactively conduct pay audits to identify and address any disparities. This involves comparing the pay of employees in similar roles and ensuring that any differences are justified by factors such as experience, qualifications, and performance.

  2. Implement Transparent Pay Structures: Establishing clear and transparent pay structures can help prevent future claims. This includes having well-defined criteria for pay increases and promotions, and ensuring that these criteria are applied consistently across all employees.

  3. Engage in Open Dialogue: Employers should engage in open and honest dialogue with employees and unions. This can help build trust and foster a collaborative approach to resolving any issues related to pay disparities.

  4. Seek Legal Advice: Given the complexity of equal pay claims, it is advisable for employers to seek legal advice to ensure compliance with employment laws and to navigate any potential claims effectively.

Guidance for Employees

  1. Know Your Rights: Employees should be aware of their rights under the Equality Act 2010, which entitles them to equal pay for equal work. This includes work that is the same, similar, or of equal value.

  2. Gather Evidence: If you believe you are being paid less than a colleague for similar work, gather evidence to support your claim. This may include job descriptions, pay slips, and any relevant communications with your employer.

  3. Seek Union Support: Unions can provide valuable support and guidance in pursuing an equal pay claim. They can help you understand your rights, gather evidence, and negotiate with your employer.

  4. Consider Legal Action: If informal discussions with your employer do not resolve the issue, you may need to consider legal action. This can be a complex and lengthy process, so it is important to seek legal advice and support from your union.

Moving Forward

The wave of sex discrimination claims facing local councils is a stark reminder of the importance of pay equity. For employers, addressing these issues proactively can help prevent future claims and promote a fair and just workplace. For employees, understanding your rights and seeking support can help you achieve the pay you deserve.

Contact a Solicitor for Sex Discrimination Claims

For legal advice relating to sex discrimination or equal pay claims, please contact our employment law experts at Farleys on 0845 287 0939, get in touch by email, or use the online chat below.