It's a big week for equal pay issues. On Monday, 20 June 2016, a seven day hearing began in the largest private sector equal pay claim ever. It is estimated that the claim against ASDA could be worth over one hundred million pounds. Worrying news for ASDA of course, however, the decision could also have wide-ranging implications for other employers, particularly those in the retail space.
In October 2014, an equal pay test case was brought on behalf of 400 workers against ASDA. The key point in this case is the issue of job evaluation. Any female employee is entitled to enjoy contractual terms that are as favourable as those of a male comparator, if they are employed in jobs of equal work. There are three categories of equal work: 'like work', 'work rated as equivalent' and 'work of equal value'. The relevant category in the ASDA case is 'work of equal value'.
The case has been tied up in a number of preliminary hearings but, this week, Employment Judge Ryan, sitting in the Manchester Employment Tribunal, will be asked to determine whether the supermarket's in-store staff jobs, which are mainly held by female workers, are of equal value, and are therefore comparable, to higher-paid jobs in the company's male-dominated distribution centres.
If the Tribunal does in fact find that the roles constitute equal work, workers could be entitled to six years' back pay for the difference in earnings. This is in light of the 'landmark' 2012 case involving equal pay claims against Birmingham City Council, in which the Supreme Court held that affected employees could launch pay equality compensation claims in the High Court, essentially extending the time limit for bringing a claim to six years (as opposed to the six-month limit in the Employment Tribunal).
It's likely that this case has a long way to go and I anticipate that, whatever the Employment Tribunal's decision, the future may hold a number of appeals to the higher courts. However, given the potential consequences of this claim, we will be following it with hawk eyes. Continue to watch out for updates on this case on our UK Employment Hub as the story unfolds.
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