Glossary · UK
What is Equal Pay?
The legal right under the Equality Act 2010 for men and women doing equal work for the same employer to receive equal contractual pay and benefits.
Full Definition
Equal pay is the legal right, set out in the Equality Act 2010, for men and women employed by the same employer to receive equal contractual pay and benefits (including pension contributions, bonuses, and other perks, not just basic salary) where they are doing "equal work" -- meaning like work, work rated as equivalent under a job evaluation scheme, or work of equal value. Unlike the gender pay gap, which is a statistical measure of the average difference in pay between all men and all women at an organisation (and which large employers must report annually), an equal pay claim is a specific legal claim that a named individual is being paid less than a named comparator of the opposite sex for equal work, with no objective, non-discriminatory justification (a "material factor defence") for the difference. Equal pay claims can be brought in an employment tribunal, generally within six months of leaving the job in question, and successful claimants can be awarded back pay for up to six years of underpayment (unlimited by the usual tribunal compensation caps that apply to some other claims), which has led to very large group litigation and settlements in sectors such as retail and local government. Employers can reduce the risk of equal pay claims by carrying out equal pay audits and ensuring pay decisions are based on objective, documented criteria such as skills, experience, and performance rather than historic or negotiated starting salaries that may themselves reflect past discrimination.