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Equality of terms comparator: LLP may be an associated employer: confirmed (News, 28 March 2014)

Equality of terms comparator: LLP may be an associated employer: confirmed (News, 28 March 2014)
Published on: 28 March 2014
Published by: LexisPSL
  • Equality of terms comparator: LLP may be an associated employer: confirmed (News, 28 March 2014)
  • Impact of the case
  • Relevant background law
  • The facts and decision of the ET
  • The judgment of the EAT
  • The Court of Session's decision

Article summary

Under the Equal Pay Act 1970, a woman had the right to pay equal to that of a man employed by the same employer or any associated employer, if that man was doing like work, work rated as equivalent or work of equal value. For these purposes, employers were treated as 'associated employers' if one was a 'company' of which the other (directly or indirectly) had control or if both were 'companies' of which a third person (directly or indirectly) had control. In this context, ‘company’ should be given its ordinary meaning rather than the restricted definition in the Companies Act 2006. Accordingly a Limited Liability Partnership should be considered a 'company' because (1) it is an association of persons (2) it has an economic purpose (3) there are formal requirements for its constitution and (4) it is a corporate body with a legal personality separate from its members and has limited liability. In the right factual circumstances an LLP may therefore be an associated employer. Court of Session: Glasgow CC v (1) Unison claimants (2) Fox Cross claimants or take a trial to read the full analysis.

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