What does equal pay law require of employers?
Under the Equality Act 2010, men and women must get equal pay and contractual terms for equal work: like work, work rated as equivalent, or work of equal value. A difference is only allowed where it is genuinely explained by something other than sex, such as location or hard-to-recruit skills.
What counts as equal work
A comparator must be of the other sex and do equal work for the same or an associated employer. Jobs that look different, such as clerical and warehouse roles, can still be equal work.
- Like work: the job and skills are the same or broadly similar.
- Work rated as equivalent: usually found through a job evaluation.
- Work of equal value: different work of equal value in terms of skill, training, responsibility or working conditions.
What is covered
Equal pay covers basic pay, pensions, hours, annual leave, holiday pay, overtime, redundancy pay, sick pay, contractual bonuses and benefits. It applies to employees, workers, apprentices, agency workers and self-employed people hired to do the work personally. Paying part-time staff less can also be indirect sex discrimination.
Equal pay is different from the gender pay gap, which compares average earnings across an organisation.
Checking for problems
Acas recommends an equal pay policy, accurate job descriptions, consistent job titles and one pay structure. The EHRC recommends an equal pay audit for organisations with 50 or more staff and a simpler equal pay review for smaller ones. Acas says an employer that loses an equal pay claim can be required to carry out an equal pay audit and publish the results, unless it has fewer than 10 staff or was less than a year old when the complaint was made.
The law
“A's work is equal to that of B if it is…”
“include a sex equality clause, they are to be treated as including one…”
Sources
- Equal pay and the law · Acas
- Preventing issues - Equal pay: employer responsibilities · Acas
- Overview - Creating an action plan: guidance for employers · GOV.UK
General information for employers in Great Britain, not legal advice. Check the official sources for your situation.
What employers can do
- Keep job descriptions up to date and align job titles for the same work.
- Use a consistent, documented approach to setting pay and benefits.
- Carry out an equal pay audit or review and act on any unexplained gaps.
- Consult trade unions or employee representatives on audits and fixes.
- Answer employee questions about pay openly and promptly.
Related answers
- Which employers must report their gender pay gap, and what is changing? Employers with 250 or more employees on their snapshot date must report and publish gender pay gap data within a year. Action plans on the gender pay gap and menopause support are currently voluntary and are expected to become mandatory in 2027: March for public authorities and April for private and voluntary sector employers.
- What are the protected characteristics under the Equality Act 2010? The Equality Act 2010 lists nine protected characteristics: age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. In Great Britain, employers must not discriminate against job applicants, workers or former workers because of any of them.