[UK] How EU equal pay regulations can benefit workers

The UK government has confirmed that it will ensure European Union (EU) derived protection under equal pay laws will stay in place for employees and workers, Employee Benefits reports.

Audrey Williams - an employment partner at Keystone Law - told Employee Benefits that is important to remember the government’s previous assurances that leaving the EU would not have the effect of eroding employment rights.

There has reportedly been increased scrutiny as a result of the Retained EU Law (Revocation and Reform) Act 2023, which received Royal Assent on June 29, 2023. The Act will largely come into effect on December 31, 2023, and will grant ministers the power to change laws accumulated while the UK was an EU member.

According to Ms Williams, significant protection against discrimination and pay inequality is provided by European law, including various directives and what was previously Article 119 of the Treaty of Rome (now Article 157). Furthermore, there is a concept known as direct effect - being able to rely directly on that Article in a tribunal or domestic court - especially where the provision may give better rights than the Equality Act itself.

Under the UK’s equal pay laws, a female employee can bring a claim where her male comparator - who she states is earning more - is in the same employment either with the same employer or an associated employer and at the same work location or establishment, or if the comparator works at a different establishment and common terms of employment are observed across the two locations.

EU law provides wider protection and would allow a claim if there is a single source which determines the employment terms though the terms are not similar or common. 

A European Court judgment in June 2023 (K and others v Tesco Stores) reportedly illustrates the significance because the claimants and their male comparators worked at different workplaces, with the women in stores and their comparators at distribution centres. In addition, the two locations did not have common terms and conditions and the Court of Justice of the European Union confirmed that Article 157 could be relied on and had direct effect, thus allowing a single source argument to proceed, Ms Williams said.

There was concern that these extended rights would be at risk of being lost or, at least, subject to significant legal challenge and debate from an equal pay perspective. The government has confirmed that the wider single-source argument will remain and specific regulations to implement the terms of Article 157 will be introduced.

Ms Williams states that equal pay claims are notoriously difficult to pursue and defend and expensive to lose. There is the potential for a tribunal to award up to six years back pay, plus interest; an award may also result in liabilities for pay-as-you-earn (PAYE) and pension benefits or pension loss. She adds that reducing the protection would have been unwelcome while inequity in gender pay continues to be problematic yet, equally, avoiding legal arguments about single source and direct effect is beneficial.

Source: Employee Benefits

The UK government has confirmed that it will ensure European Union (EU) derived protection under equal pay laws will stay in place for employees and workers, Employee Benefits reports.

Audrey Williams - an employment partner at Keystone Law - told Employee Benefits that is important to remember the government’s previous assurances that leaving the EU would not have the effect of eroding employment rights.

There has reportedly been increased scrutiny as a result of the Retained EU Law (Revocation and Reform) Act 2023, which received Royal Assent on June 29, 2023. The Act will largely come into effect on December 31, 2023, and will grant ministers the power to change laws accumulated while the UK was an EU member.

According to Ms Williams, significant protection against discrimination and pay inequality is provided by European law, including various directives and what was previously Article 119 of the Treaty of Rome (now Article 157). Furthermore, there is a concept known as direct effect - being able to rely directly on that Article in a tribunal or domestic court - especially where the provision may give better rights than the Equality Act itself.

Under the UK’s equal pay laws, a female employee can bring a claim where her male comparator - who she states is earning more - is in the same employment either with the same employer or an associated employer and at the same work location or establishment, or if the comparator works at a different establishment and common terms of employment are observed across the two locations.

EU law provides wider protection and would allow a claim if there is a single source which determines the employment terms though the terms are not similar or common. 

A European Court judgment in June 2023 (K and others v Tesco Stores) reportedly illustrates the significance because the claimants and their male comparators worked at different workplaces, with the women in stores and their comparators at distribution centres. In addition, the two locations did not have common terms and conditions and the Court of Justice of the European Union confirmed that Article 157 could be relied on and had direct effect, thus allowing a single source argument to proceed, Ms Williams said.

There was concern that these extended rights would be at risk of being lost or, at least, subject to significant legal challenge and debate from an equal pay perspective. The government has confirmed that the wider single-source argument will remain and specific regulations to implement the terms of Article 157 will be introduced.

Ms Williams states that equal pay claims are notoriously difficult to pursue and defend and expensive to lose. There is the potential for a tribunal to award up to six years back pay, plus interest; an award may also result in liabilities for pay-as-you-earn (PAYE) and pension benefits or pension loss. She adds that reducing the protection would have been unwelcome while inequity in gender pay continues to be problematic yet, equally, avoiding legal arguments about single source and direct effect is beneficial.

Source: Employee Benefits