Ulster Tatler – August 2019

(Nancy Kaufman) #1

This month, John offers guidance to employers to prevent discrimination based on gender and avoid


violation of the Equal Pay Act (NI) 1970.


Equal Pay: Advice for Employers


The topic of equal pay was back under the spotlight recently when
headlines carried the story of a Belfast solicitor being awarded over
£270,000 after the Industrial Tribunal found she had not been paid
the same as her male colleagues.


The Tribunal found that several of the Claimant’s colleagues (notably,
three men and one woman) were promoted to new roles with higher
salaries but that the work they carried out in these new roles was
comparable to the work she undertook and, therefore, did not merit
more pay. Accordingly, the Tribunal found that the Respondent had


breached equal pay legislation. The firm at the centre of the case has
stated its intention to appeal the finding.


Equal pay – what does the law in Northern Ireland say?
Whilst the Sex Discrimination (NI) Order 1976 and the Pensions (NI)
Order 1995 also feature in this sphere, the key piece of legislation
at play here is the Equal Pay Act (NI) 1970. Essentially, this Act gives
all employees a right to equal pay with a person of the opposite sex
(known as “a comparator”) doing like work, work of equal value or
work rated as equivalent. It’s also worth noting that the definition of
“pay” in this sense is broader than employers might expect; it can
include basic pay/salary, bonuses, premiums and performance
related pay, for example.


It should be said that the “comparator” with whom an employee
seeks to compare him/herself must be in the same employment as


the claimant, i.e. they are employed by the same or an associated
employer at the same location, or by the same or an associated
employer at a different location but where common terms and
conditions apply.


Steps to take to avoid equal pay claims
Whilst employers have several lines of defence against equal pay
claims (the most well-known being the genuine material factor


defence, i.e. where the employer can prove that the difference is
genuinely due to a material factor which is not in itself discriminatory),
defending equal pay claims can prove both expensive and time-
consuming. Therefore, we would recommend that appropriate steps
are taken at an early stage to avoid claims arising in the first place.

One such method of limiting exposure is for employers/businesses
to consider carrying out an equal pay audit. Whilst there is not (yet!)
an obligation on employers in Northern Ireland to report on pay, it is
worth noting that the Equality Commission here does encourage it as
a recommendation of good practice.

The benefits for a business which chooses to carry out an equal
pay audit include:


  • The ability to identify and, where necessary, eliminate pay
    inequalities;

  • The potential to create or maintain fair and transparent pay
    arrangements; and

  • The means to demonstrate to employees, would-be employees and
    customers, the company’s commitment to equality.


An equal pay audit could allow your business to identify inequalities in
pay at an early stage and to take appropriate action to remedy these
discrepancies in order to ultimately avoid being on the receiving end
of future equal pay claims.

For further information on this topic or
for assistance with any employment law
query, John can be contacted by telephone
on 028 9043 4015 or by email at johnk@
worthingtonslaw.co.uk.

John Kelly is a solicitor specialising in employment law at Worthingtons

189

Column / Know the Law

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