Council settles equal pay claim
Tuesday 8th November 2011
A leading lawyer is warning employers to ensure they do not fall foul of anti-discrimination laws after Sheffield City Council was forced to pay out compensation rumoured to be in the millions.
The case of Gibson and others v Sheffield City Council - brought by a group of predominantly female care workers and school meal supervisors (or dinner ladies) angry at being denied a productivity bonus paid to the council's largely male street cleaners and gardeners - was to be the Supreme Court's first opportunity to clarify the law on equal pay.
The Council had argued that the bonus scheme was introduced to boost productivity amongst the street cleaners and gardeners but, as the performance of the predominantly female carers could not be measured or rewarded in the same way, the reason for not awarding them the same bonus was not discriminatory.
However, the Court of Appeal found in favour of the care workers last year on the grounds that it is difficult to prove that the reason for pay difference is not "tainted by sex" where there is statistical evidence of an adverse effect on one gender and not the other. Faced with paying damages in the region of £20 million, the Council agreed a confidential settlement with the workers before the case was heard by the Supreme Court.
Rhiain Lewis, an Employment Partner at Ashfords LLP, said that the decision of the Council to settle the case could have huge implications for employers.
She added: "Workers across the country in occupations traditionally performed almost exclusively by one sex may expect that they too are entitled to compensation. Although employers may feel they have a robust, operational reason for differences in pay, the inferences of sex discrimination arising from statistical evidence can be difficult to overcome.
"That is why, when implementing bonus schemes that could be seen as discriminatory, employers should seek legal advice to avoid finding themselves in hot water."
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