Private Company Employees

Equal pay law applies to all employees whether they are working in the public or private sector.  However, there are certain issues that are more likely to affect private company employees.

Predecessor / Successor Claims

It is possible to bring a claim under equal pay law if you discover that the predecessor or successor in your job has been paid more than you.

In July 2006, Bridget Bodman won an equal pay case against her employer, the API group.  Her successor, in the same accountancy role was paid substantially more than her and given better benefits.  It was found that, as the employer could produce no good reason for this difference in pay other than gender, the API group were in breach of the equal pay act, and a settlement was reached accordingly.

If you discover that your predecessor has been paid more than you and they are a person of the opposite sex, then you may have an equal pay claim.  Likewise, if you find that your successor is paid more than you (you may even notice your job advertised at a higher rate), then you may also have an equal pay claim.

Bonuses

It is not just salary that is subject to equal pay law, but also the terms of your contract, any benefits and bonuses.

City bonuses have been particularly in the spotlight as there are often big disparities between bonuses given to men and those to women.

If you believe or find out that your employer has given a male colleague a greater bonus than yourself, and you believe that your performance has been equal, then you may have an equal pay claim.  The employer will need to demonstrate that there is a reason other than gender for the difference in the bonus amount.

Confidentiality clauses regarding bonuses in the city have also made it difficult for women to find out if what they suspect, is true.  And there are calls for greater transparency in order to remedy this problem.

Finding out if you are underpaid

Often it can be difficult to find out if you are being paid unfairly if you work for a private company.   As private companies are frequently less transparent about their pay structures and they may not have carried out an equal pay review.  

Most people in private companies find out by accident or through discussion with colleagues that they are underpaid.  If you suspect that you are underpaid then you can fill in an equal pay questionnaire which requests details of pay from your employer and is a good starting point for raising the issue with them.