Equality of terms

By Tolley in association with Sarah Bradford
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The following Employment Tax guidance note by Tolley in association with Sarah Bradford provides comprehensive and up to date tax information covering:

  • Equality of terms
  • Comparators
  • Equal work
  • Definition of pay

The Equality Act 2010 contains provisions designed to achieve equality in the workplace and provide protection against discrimination on grounds of sex, race and disability. The Act aims to ensure equality between men and women in pay and other terms of employment where the work of an employee and his or her comparator (a person of the opposite sex for this purpose) are 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 his or her comparator. A similar provision, referred to as a sex equality rule, is implied into the terms of pension schemes.

The Act implies an equality clause into a person’s (A) terms of work, or an equality rule into an occupational pension scheme, where A either:

  • is employed on work that is equal to the work that a comparator of the opposite sex (B) does
  • holds a personal or public office and does work that is equal to the work that a comparator of the opposite sex (B) does

EqA 2010, ss 64–66

Therefore, in order to be eligible to bring an equality of terms claim, A must:

  • be employed, or hold personal or public office
  • be able to compare their work with that of a comparator
  • do work that is equal to that of a comparator
Comparators

A person who claims the benefit of a sex equality clause or sex equality rule must be able to compare their work with that of a comparator who has to be a real person and

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