Equal pay claims can be brought in civil courts

As widely reported in the press, the Supreme Court in Birmingham City Council v Abdulla & Ors has ruled that claimants who are out of time for bringing equal pay claims in an employment tribunal can still bring the claim in the civil courts unless it would be an abuse of process to do so.

Although the case involved the public sector this decision has potentially serious ramifications for the financial services sector given the long recognised gender pay gap within the sector.

Key points to take away

  • The majority of equal pay claims are still likely to be brought in the tribunal as this has the advantage of being quicker and there are less risks in relation to costs as these are still rarely awarded against the losing party.
  • This decision opens the way for claims from those who left employment up to six years ago although the amount of backdated pay claimed is limited to six years from the date of the claim. The concern for financial services employers is that ex-employees are more likely to have found other employment, may have no concern about references, possibly having now left the sector, and are likely to have the funds to pursue a claim in the civil courts.

Other equality news

  • Equal pay audits: The Government indicated in June last year that it would be consulting further on the content of equal pay audits. The Government Equalities Office has confirmed in a recent phone call with us that the consultation is currently being put together and they are hoping to issue this before the end of May. We will keep you updated.
  • EC Directive proposed to increase board representation of women: The proposed directive seeks to increase representation in non-executive board member positions to 40% in publicly listed companies. These measures are to attain a 40% to 49% membership by 1 January 2020 at the latest, or 1 January 2018 for listed companies which are public undertakings. This proposal has passed to the European Parliament and Council of the European Union for consideration.
  • The UK government welcomed the Commission's decision not to impose mandatory quotas for women. It considers its voluntary approach is working as women have made up 44% of FTSE100 Board appointments since March 2012.

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