How to spot unequal pay discrimination

By Kerry Abel, TSSA’s Full Time Organiser for TfL

Equal pay discrimination is a serious issue within workplaces and is addressed through various legal frameworks, primarily the Equality Act 2010. The core of equal pay discrimination lies in the principle that men and women (or other protected characteristics) must be paid the same for equal work, which can either be defined as:

1. Equal Work – The same job or very similar work.
2. Work of Equal Value – Work that is different but of equal value in terms of effort, skill, responsibility, and working conditions.
3. Comparable Work – Work that is similar in nature but may be under a different job title or department.

Here are key indicators of equal pay discrimination within pay structures, along with practical tips on how to spot and address it:

1. Differences in pay for equal or similar roles

• Indicator: When employees of different genders (or other protected characteristics) are paid significantly differently for performing the same or a similar role.
• What to look for:
  • Review job descriptions for roles that have similar responsibilities.
  • Compare pay rates between employees who do the same job in the same
  • or similar positions.
  • Check if job titles or roles are used to justify pay differences without clear distinctions in job content, skill level, or experience.
• Tip: If you notice discrepancies, it’s important to first check if the job descriptions and responsibilities are genuinely equal. Pay differences without clear justifications (like performance or experience differences) are strong signs of unequal pay.

2. Discrepancies in pay for work of equal value

• Indicator: Pay differences between employees in different roles that require a similar level of skills, effort, and responsibility.
• What to look for:
  • Use job evaluation techniques to assess whether roles with different titles require similar levels of responsibility and skills.
  • Compare roles that might traditionally be considered "female-dominated" (eg, administrative or caring roles) versus "male-dominated" roles (eg, technical or managerial roles), even when the responsibilities are similar.
• Tip: Assess whether an undervaluation of one group’s work is contributing to the disparity. Job evaluation is a method where you can compare roles in terms of their overall value, not just their job titles.

3. Opaque pay systems or lack of transparency

• Indicator: A lack of transparency in how pay is set or decided within an organisation.
• What to look for:
  • Look for policies that prevent employees from discussing their pay with each other. In the UK, this can be a flag for possible discrimination.
  • Evaluate whether pay scales are public, or if employees are left in the dark about how pay rates or starting salaries are determined.
  • Assess whether there is any published information about how pay increases are awarded, whether based on performance, seniority, or market conditions.
• Tip: An open, transparent pay structure helps prevent pay discrimination. Regular audits and accessible pay scales ensure fairness. If transparency is lacking, employees can raise concerns about pay equity.

4. Stereotypes and bias in role assignments

• Indicator: Discriminatory practices in job assignments, where women (or other protected characteristics) might be steered into lower-paid roles based on assumptions about their capabilities, rather than their actual qualifications.
• What to look for:
  • Identify any patterns where women (or other characteristics) are being recruited into lower-paid roles or jobs with less potential for advancement.
  • Note whether women are given less responsibility or are overlooked for promotion opportunities in favour of male colleagues, despite having similar qualifications.
• Tip: Bias can often impact career progression, with women and other groups being given less opportunity for higher-paying roles. Regularly assess recruitment and promotion data to ensure roles are assigned equitably, and provide training to challenge stereotypes.

5. Disparities in bonus or additional pay

• Indicator: Women, BAME or disabled employees receiving less in terms of performance-based bonuses, allowances, or incentives, even when their performance is equivalent to others.
• What to look for:
  • Check whether employees in the same role or at the same level receive bonuses, overtime pay or benefits differently based on gender or other characteristics.
  • Investigate if certain groups are more likely to miss out on company perks, like performance bonuses or other benefits.
• Tip: Compare bonus structures and ensure that they are being applied equally to all employees, regardless of gender, race, or other protected characteristics. If not, this could point to unequal pay or discrimination in practice.

6. Career development opportunities and pay progression

• Indicator: Disparities in pay progression where one group of employees (eg, women or other protected characteristics) is overlooked for promotions or salary increases despite equivalent experience and qualifications.
• What to look for:
  • Compare pay progression trends over time for different groups within the organisation.
  • Identify if certain groups are regularly overlooked for promotions or given fewer opportunities for skill development and training, affecting their ability to increase their pay.
• Tip: Audit career development opportunities, ensuring that all employees have equal access to career progression. Disparities in career advancement often lead to pay gaps over time.

7. Retrospective pay adjustments or settlements

• Indicator: Evidence of pay adjustments or settlements following complaints or legal action regarding equal pay discrimination.
• What to look for:
  • If an organisation has been taken to tribunal or faced complaints about pay discrimination, check if there were pay corrections made after complaints were raised.
  • Examine whether such adjustments were applied to rectify broader, systemic pay gaps or only for specific individuals.
• Tip: Organisations should make retroactive adjustments when equal pay violations are found, and it’s important to monitor whether these adjustments were made in a consistent manner across all affected groups.

In summary:

Legal measures to spot and address equal pay discrimination:

• Conduct regular pay audits: Employers should regularly conduct internal pay audits to ensure that their pay structures comply with the principle of equal pay. A good audit should consider not just salary but bonuses, allowances, and other benefits.
• Employee feedback and reporting mechanisms: We want employees to feel safe raising concerns about unequal pay, either informally or through formal grievance procedures. Contacting your line manager for more information could be your first option.
• Consult your trade union: If you're concerned about pay discrimination, get in touch with your trade union who will be able to consult a legal advisor specialising in employment law to identify whether you're being treated unfairly and provide a route to challenge discriminatory pay practices.

Equal pay discrimination is often subtle and ingrained in organisational structures and practices, but it can be identified by comparing the pay, responsibilities, and progression of employees in similar roles and ensuring pay systems are transparent and free from bias. Regular audits, clear communication, and proactive measures such as training to address unconscious bias are key in spotting and preventing unequal pay.

But we need your help to highlight problems, if you think you have an example of unequal pay, speak to your local TSSA rep or contact the TSSA Helpdesk to discuss your options.