What do the pay gap and equal pay mean in practice?

What do the pay gap and equal pay mean in practice?

Many people speak about the pay gap which, as of April 2023, sits at around 13-15 per cent between men and women among all employees in the UK.

On the face of it, a gender pay gap of any kind is prohibited, first by the Equal Pay Act 1970 and then more firmly under the Equality Act 2010.

When doing the same job with the same responsibilities at the same company, employees of all genders must not be paid differently due to gender differences.

However, it seems that the pay gap still exists, and that equal pay is not fully understood by many employees and employers.

What is a pay gap and why does it exist?

In 2024, the gender pay gap does not just refer to employers blatantly paying employees of one gender less than those of another gender.

Historically, employers were allowed to pay women less than men for doing exactly the same job, but this is no longer the case.

Now, the gender pay gap refers to a wider societal average in which women on average earn less than men for the same work.

This is due to a number of factors:

The pay gap is hard to solve precisely because it exists despite being legislated against.

To combat unequal pay, it’s important for you to recognise when you may not be receiving fair pay and know how to raise a dispute.

Employment rights and equal pay

Your employer will typically have a range of salaries or hourly rates which it pays for each role, depending on the experience of each person – this is permitted under the law, as long as it isn’t based on a characteristic protected under the Equality Act.

For example, you may take on the same role as someone else, but they bring more experience to the role and are therefore more efficient and quicker to learn. Initially, they may be paid slightly more than you, despite having the same role.

However, if you think you’re being treated unfairly and aren’t receiving equal pay, then you need to know what to do next.

As a reminder, equal pay legislation covers basic pay, but also pension, holiday allowances and working hours.

The process for raising an equal pay dispute is generally as follows:

We recommend that you seek legal advice in equal pay disputes, as they can quickly become complex.

There are a number of factors that will be considered when assessing an equal pay case, reflecting that it can be hard to define ‘equal work’ and prove that pay discrimination has or has not happened.

Please contact our team to discuss your needs and circumstances further.

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