Equal pay

Compare equal work and contractual terms

Great Britain equal-pay law compares a person's contractual terms with those of someone of the other sex doing equal work for the same or an associated employer. It covers employees, workers, apprentices, agency workers and self-employed people hired to do the work personally. Equal work can mean like work, work rated as equivalent under a valid job-evaluation scheme, or work of equal value in demands such as effort, skill and decision-making.

Acas's equal-pay guidance explains the covered statuses, associated-employer test and terms such as bonuses, holiday, hours, pensions and benefits.

Examine the reason for a difference

A difference may be lawful if the employer can prove a material factor that is genuine, significant and not because of sex. Where that factor indirectly disadvantages one sex, the employer may also need objective justification for it.

Keep pay criteria consistent and evidence decisions when they are made. Market supplements, location, experience or performance labels are not self-proving explanations. The employer should be able to show how the factor applies to the actual roles and amounts.

Do not confuse equal pay with the gender pay gap

Equal pay concerns contractual equality between people doing equal work. Gender pay gap reporting compares aggregate hourly pay and bonus outcomes across a relevant workforce. An employer can have a gender pay gap without an equal-pay breach, and the reverse can also be true.

Give employees a clear route to ask how pay was set or raise a grievance. Northern Ireland uses separate equal-pay legislation, so use the nidirect route for an NI case. Employers should investigate concerns rather than waiting for a reporting threshold or a formal claim.