Employers could be faced with a flood of equal pay claims going
back six years lawyers at Browne Jacobson have warned.
The High Court has decided that employees can bring a claim
within six years from the date of the breach.
Traditionally employees have pursued equal pay claims through an
employment tribunal. However such claims are subject to a tight
timescale as they need to be brought within six months from the end
of an employment.
However now the High Court in the case of Abdulla v Birmingham
City Council has ruled that employees who find themselves time -
barred from pursuing a claim at an employment tribunal can bring
their case before the High Court.
In Abdulla 174 former employees of Birmingham City Council
believed they should have received bonuses which had been paid to
predominantly male groups in jobs the employees say were rated as
equivalent by the employer.
Edward Benson, Head of Employment at Browne Jacobson, is
advising any employer who receives a High Court or County Court
claim form, to seek legal advice without delay, because action is
normally required within 14 days to protect one's position.
He added: "If High Court equal pay claims are lost or settled by
the employer then they will certainly be more expensive than if
they had been brought in the Employment Tribunals.
"This is because in High Court litigation the losing side
generally has to pay the winner's legal fees.
"If the employee's solicitors are acting on a "no-win-no-fee"
basis then the losing side's liability can also include a "success
fee" of up to 100% of normal charges, and the premiums for "after
the event" legal expenses insurance.
"However, the prospect of having to pay the employer's legal
costs may act as a barrier to employees brining claims with little
prospect of success.
"There is one small crumb of comfort. Whilst claims dating back
six years may now be brought the back-pay can only be claimed for
six years from the date the claim is issued at Court, so the amount
of back-pay ought to be the same as if the claim were brought to an
employment tribunal."
For more information about Browne Jacobson, please visit their
website here: www.brownejacobson.co.uk