Council Lose 500m GBP Equal Pay Claim

£500 million Equal Pay Decision

Birmingham City Council could be facing a £500 million bill in back-dated pay and bonuses when nearly 5,000 women workers at the council, mainly employed as cooks, cleaners and care assistants, won a class action on equal pay at an employment tribunal after it was discovered their male counterparts were earning significantly more money for work at the same grade.

They successfully argued that women were excluded from bonuses worth up to 160 per cent of basic salaries.

Although the final bill is yet to be confirmed, legal experts estimated it could equate to as much as £100,000 per worker or more, as equal pay awards can be back-dated for six years plus interest.

These costs relate to just one council. How many more cases are to be won with similar costs associated? Might be worth asking your council – bound to have an impact on business rates.