January 07, 2011
A recent High Court decision has made it possible for employees and workers to bring equal pay claims for breaches that occurred up to six years ago.
The Court, in Abdulla v Birmingham City Council, ruled that such claims can be brought in the High Court, where the limitation period is six years from the date of breach. Previously it was thought that such claims could only be dealt with by an employment tribunal, where workers only have six months from the date of the breach in which to bring a claim.
The case involved a claim by female Council workers who did not receive a bonus that male workers in equally rated positions received.
As well as extending the number of claims that employers may now receive, the decision could also increase the cost of such claims, if a case is lost by an employer. This is because in court cases, the losing party has to pay the winner’s legal costs which can include a success fee and insurance premiums if the worker is represented on a ‘no win, no fee’ basis.
However, any compensation awarded to a successful claimant can only be claimed from the date of the High Court action so will not be backdated to the date of the breach.
If notice of a claim is received by an employer, s/he should seek legal advice as quickly as possible so as not to miss the deadline for filing a response.
