Equal pay and terms
Equal pay and terms

The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:

  • Equal pay and terms
  • Prerequisites
  • Implied sex equality clause
  • Pensions—implied sex equality rule
  • Gender reassignment
  • Exceptions—terms of work
  • Exceptions—occupational pension schemes

This Practice Note covers the law that applies on or after 1 October 2010 in relation to equality of terms (previously known as equal pay). It is intended to provide high-level information to help you draft your equality and diversity policy. It is not intended as a guide to dealing with equality and diversity claims as this is an employment law issue.

Prerequisites

The Equality Act 2010 (EqA 2010) contains provisions designed to achieve equality between men and women in pay and other terms of employment where the work of an employee and their comparator (a person of the opposite sex) is equal. It does so by providing for a sex equality clause to be read into the employee’s contract of employment. This is designed to ensure parity of terms between the employee and their comparator. A similar provision (referred to as a sex equality rule) is implied into the terms of pension schemes.

The EqA 2010 implies an equality clause into a person's (A's) terms of work, or an equality rule into an occupational pension scheme, where A:

  1. is employed on work that is equal to the work that a comparator of the opposite sex (B) does, or

  2. holds a personal or public office and does work that is equal to the work that is done by a comparator of