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Equal Pay meaning

/ˈiːkw(ə)l/ /peɪ/
What does Equal Pay mean?
Equal pay describes the right of an employee to the same pay and contractual terms as an opposite‑sex comparator where their work is equal. In Great Britain, this operates as “equality of terms” under the Equality Act 2010, which implies a sex equality clause into every contract to level up any less favourable term. It covers salary, bonuses, overtime, holiday, benefits in kind and, via a sex equality rule, occupational pension schemes. Work is “equal” where it is: (i) like work; (ii) rated as equivalent under a valid job evaluation scheme; or (iii) of equal value in terms of effort, skill and decision‑making. The comparator must be an actual opposite‑sex employee of the same or an associated employer, at the same establishment or on common terms. An employer may defend a difference by showing a material factor that is sex‑neutral and (where indirectly discriminatory) objectively justified. Claims are typically brought in the Employment Tribunal, with remedies including contractual modification and arrears. Equivalent protections apply in Northern Ireland under the Equal Pay Act (NI) 1970. In Ireland, the Employment Equality Acts provide equal pay for “like work” (including equal value), with claims to the WRC/Labour Court. Equal pay is distinct from gender pay...
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View the related Checklists about Equal Pay

CHECKLISTS
Green Deal in property transactions—disclosure, acknowledgements, consents, charges and MEES: a due diligence checklist (England and Wales)

The Green Deal The Green Deal was a government initiative enabling households and businesses to carry out energy efficiency upgrades to domestic and commercial buildings using a ‘pay-as-you-save’ model. Approved Green Deal providers sourced low-cost finance for the works with no advance payment required. Instead, the cost of the efficiency measures was added to the property’s energy bills and settled in instalments by the energy bill payer, in accordance with the Green Deal Golden Rule, namely that the anticipated monetary savings from the measures would be equal to or exceed the charges applied to the bill. Responsibility for repayment is attached to the property itself, and therefore passes to any new owner or occupier on sale or letting. The Energy Company Obligation (ECO), which replaced the Carbon Emissions Reduction Target and the Community Energy Saving Programme, operated alongside the Green Deal. The Green Deal was brought in across Great Britain by the Energy Act 2011 (EnA 2011) and given effect through various regulations and orders, including the Green Deal...

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CHECKLISTS
Ireland-Workplace Relations Commission claims and equal status complaints: time limits and appeal deadlines-practitioner checklist

This Checklist sets out the principal time limits practitioners should note when lodging claims with the Workplace Relations Commission (WRC). For fuller guidance on filing a WRC complaint, see Practice Note: Ireland-Making a complaint to the Workplace Relations Commission (WRC)... Employment related claims Complaints arising under the Employment Equality Acts 1998–2015 (Ireland) (EEA 1998 (IRL)) or the Pensions Acts 1990–2015 (Ireland) (PA 1990 (IRL)) must be made by completing the online complaints form available on the WRC website. See the WRC website for further information on employment related claims... Type of claim: Employment related claims Time limit: Six months from the date of the alleged discrimination; where multiple alleged incidents occur, the relevant date is that of the most recent incident...

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View the related News about Equal Pay

NEWS
UK employment weekly: Tesco ‘fire and rehire’ injunction; NMW remit; discrimination rulings; hybrid working guidance; Asda equal pay; EAT extension; SFO and AI developments; immigration rule changes

In this edition: Employment contract Pay Protected characteristics Prohibited conduct (discrimination etc) Prohibited conduct protection at work Equality of terms (equal pay) Employment Appeal Tribunal Governance and regulatory Immigration Dates for your diary Trackers New Q&As Employment resources on Lexis+® Daily and weekly news alerts Employment contract UKSC upholds claimants’ appeal and restores injunction in Tesco ‘fire and rehire’ case In Tesco Stores Ltd v Union of Shop, Distributive and Allied Workers (USDAW) [2024] UKSC 28, Tesco moved to end employees’ contracts to remove their ‘retained pay’—a contractual financial entitlement accepted as permanent—and to offer re-engagement on new terms excluding that pay. Working with the union, USDAW, several employees obtained a High Court injunction restraining Tesco from dismissing them in order to take away the retained pay entitlement. The Court of Appeal, however, allowed Tesco’s appeal against that order. The Supreme Court has since backed the claimants’ appeal and...

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NEWS
CMA draft pricing guidance: delivery charges and the DMCC total price requirement across product listings, baskets and checkouts (UK)

Overriding principles The DMCC’s core requirement is that a product’s “total price” must be shown prominently in every invitation to purchase (ITP). (For what constitutes an ITP, see here.) The total price covers all amounts the consumer will inevitably pay, which therefore includes any compulsory delivery charges. There is a limited DMCC exception. Where, owing to the nature of the product, a compulsory delivery charge cannot reasonably be worked out in advance, every ITP must explain how that charge will be calculated. This explanation must appear with the same prominence as the total price and must enable the consumer to determine the overall cost. Typically, equal prominence means placing this information beside or immediately below the total price. Before relying on this carve‑out, traders should be satisfied that the compulsory delivery charge genuinely cannot be calculated beforehand. The CMA has indicated that the exception will be applied narrowly...

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NEWS
EAT dismisses CNN’s jurisdiction appeal; peripatetic reporter’s unfair dismissal, discrimination and equal pay claims can proceed in London from March 2017

Cable News International Inc v Ms. Saima Bhatti , [2025] EAT 63 Judge Timothy Kerr dismissed the appeal brought by Cable News International Inc. He concurred with Employment Judge Pavel Klimov that reporter Saima Mohsin, whose legal name is Saima Bhatti, is entitled to pursue claims for unfair dismissal, equal pay and discrimination against the respondent, internationally recognised as 'CNN'. The appellate tribunal recorded that the finding that the claimant’s employment bore a sufficient connection with Great Britain from [the beginning of March 2017] onwards rested on his evaluation of the evidence, and that he neither erred in principle nor adopted a wrong approach to the evaluative assessment of that evidence, as set out by the tribunal...

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View the related Practice Notes about Equal Pay

PRACTICE NOTES
Pregnancy and maternity equal pay under the Equality Act 2010: maternity equality clause, no comparator, protected period, pay rises, bonuses, timing, pensions and post‑leave pay

This Practice Note considers how equal pay (equality of terms) applies to women who are pregnant or on ordinary or additional maternity leave (OML/AML). It also examines key elements relevant to pregnancy and maternity within equal pay law, including: the implied maternity equality clause, covering its impact and the duration of the protected period the principle that a comparator is unnecessary for pregnancy- and maternity-related equal pay claims how pay rises, bonuses and pension contributions are handled during maternity leave and on returning to work A woman away from work on maternity leave occupies a distinct position that merits particular protection, yet is not comparable to a man who is actually working. Consequently, she is not entitled to full pay during maternity leave, notwithstanding the equal pay principle in the Treaty on the Functioning of the European Union. That said, being on maternity leave does not remove all equal pay entitlements for the duration of the absence (see: Effect of maternity...

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PRACTICE NOTES
Employment tribunal-ordered equal pay audits in Great Britain: triggers, scope, compliance, penalties, publication and litigation strategy under the Equality Act 2010

This Practice Note considers equal pay audits, under the Equality Act 2010 (EqA 2010) provisions providing equality of pay An equal pay audit is a mechanism employers use to spot possible workplace discrimination arising from unequal pay for equal work. Some employers choose to conduct them on a voluntary basis. Carrying one out can enable an employer to: demonstrate its commitment to achieving and promoting equal pay compare the pay of protected groups who are performing equal work investigate the cause of any gaps identified by reference to a protected characteristic (most commonly gender) identify steps to close any gaps identified that cannot be legally justified use the findings and action points identified as a risk assessment for pay structures reduce potential equal pay breaches going forward Most employers do, unintentionally, have some gaps in pay that are brought to light by an audit. While many of these might be capable of objective justification, employers may nevertheless be...

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PRACTICE NOTES
Barber and occupational pension equalisation: EU equal pay, the Barber window, levelling up/down and retrospective amendments

This Practice Note includes references to case law from the Court of Justice of the European Union. For guidance on whether EU judgments are binding on UK courts, see Practice Note: Assimilated law — Assimilated case law. The equal pay principle and pensions In its judgment in the Barber case delivered on 17 May 1990, the Court of Justice of the European Union decided that pensions payable under a private occupational pension scheme constitute deferred remuneration. Accordingly, the right to equal pay in Article 119 of the Treaty of Rome (the predecessor to Article 157 of the Treaty on the Functioning of the European Union (TFEU)) extends to the element of a person’s remuneration made up of pension benefits in the same way as to any other part of their pay. The Court in Barber also concluded that the equal pay right has direct effect in relation to occupational pension schemes, and that it falls to the national courts to protect the rights that this provision confers on...

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View the related Precedents about Equal Pay

PRECEDENTS
Employment Tribunal ET3 template: grounds to resist equal pay claims, including like work, rated as equivalent, equal value, and material factor defence (England, Wales and Scotland)

[ Insert in para 6.1 of response form ET3: ] Paragraph 1 of the Grounds of Claim is accepted. It is denied that the Claimant carries out like work to that of [ insert names of comparators ]. The Claimant’s duties were materially different from those of [ insert names ] in the following ways: [ insert details ]. OR It is denied that a valid job evaluation exercise assessed the Claimant’s work as equivalent to that of [ insert name of comparator ]...

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PRECEDENTS
Equal pay claims: precedent questions on comparators, like work, job evaluation, equal value, material factors, arrears and maternity pay

Reasons for believing employee may not have had equality of terms I contend my terms are not on a par with my comparators. I hold the role of [ insert claimant’s job ] yet am paid less than comparators who are [ insert comparator’s job ]. At my workplace, other [ insert claimant’s job ] are almost entirely [ female OR male ]. The comparators, being [ insert comparators’ job ], are wholly [ male OR female ]. They are awarded productivity bonuses that are not given to [ insert claimant’s job ]. Alternatively, I serve as [ insert claimant’s job ]; my immediate predecessor was [ male OR female ], and I understand [ he OR she OR they ] received a superior remuneration package to mine, including bonuses. Comparators Provide the names or job titles of the selected comparators. Other questions Include any additional questions. Entitlement to claim Do you acknowledge that I am an [ employee OR public...

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PRECEDENTS
ET1 grounds of claim—equal pay: failure to reflect pay rises and pay pre-leave bonuses during maternity leave; declarations modifying terms, arrears, damages and interest

[ Insert in para 8.2 of claim form ET1: ] The Claimant is a woman employed by the Respondent at its establishment located at [ insert address ] in the capacity of a sales assistant position. The following are terms of the Claimant’s contract of employment as follows: 2.1 she was entitled to maternity-related pay for the period of her ordinary maternity leave and also at the rate of [ insert percentage ] of her normal pay, that normal pay being then calculated as at the date she commenced maternity leave; and 2.2 she was entitled to a bonus of [ insert method of calculation of bonus ] on sales she had achieved, with such bonus to be then calculated and paid [ insert details of when payment of bonus due ]. ...

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View the related Q&As about Equal Pay

Q&As
Fixed-term: normal pay during statutory notice while on SSP

Statutory minimum notice For an overview of the statutory entitlement to a minimum notice period under the Employment Rights Act 1996 (ERA 1996), refer to Practice Note: Statutory minimum notice. The right to statutory notice in ERA 1996, s 86(1)–(2), prescribes the length of notice needed to end the employment contract of an individual who has been employed continuously for one month or more. For this context, a ‘contract of employment’ includes a contract of service or apprenticeship, whether expressly (orally or in writing) or implied...

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Q&As
Equal pay: genuine material factor defence - client‑funded bonus

The Equality Act 2010 (EqA 2010) The Equality Act 2010 (EqA 2010) sets out measures to secure equality between men and women in pay and other employment terms where an employee’s work matches that of a comparator of the opposite sex. It accomplishes this by implying a sex equality clause into the employee’s contract of employment, ensuring that the contract reflects the comparator’s terms. This mechanism is intended to guarantee parity of conditions between the employee and their comparator...

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