Equal Pay
The Equal Pay Act 1970 sets out that men and women should receive equal pay for equal work. It does this by implying an equal pay clause in to contracts of employment. This has been extended in 2005 to include specific provision for women during pregnancy and maternity leave.
However, the implied equality clause will not amend a contract if the employer can demonstrate that the difference in contractual terms is due to a genuine material factor (GMF) which is not the difference of sex. This GMF can not be directly or indirectly discrimatory. Employers will need to ensure an constant review of their staff and pay grades and be in a position to objectively justify any pay increase given to a person of a different sex to someone carrying out equal work. Failure to do this could give rise to equal pay claims.
Our experience can help you through this potential minefield.
