Council ruled as a “single establishment” for equal pay purposes

A recent decision of the Employment Appeal Tribunal (EAT) has adopted a broad interpretation of the meaning of the 'same establishment', for the purposes of an equal pay claim brought by a group of female employees seeking equal pay to their male counterparts.

The Equal Pay Act 1970 implies an equality clause into any employment contract so that female staff can benefit from equivalent contractual terms and conditions as their male counterparts (doing the same or similar work), provided they are employed at the 'same establishment'. 

A group of 42 women in a recent case were employed in various administrative and clerical roles by Edinburgh City Council in schools, hostels, libraries and social work.  The men they compared themselves to were employed by the Council as manual workers (refuse collectors, gardeners, road-workers, etc) at different locations. The women contended that they were entitled to be paid equally to the men, despite working at different geographical locations.

The Employment Tribunal decided that whilst the women were employed by the same undertaking (the Council), they were not employed at the 'same establishment' and rejected their claim.  On appeal to the EAT, the judge held that in determining whether claimants work at the same establishment, a broad and purposive approach must be adopted.  She decided the Council was a single establishment.  In coming to this conclusion, the judge took into account the fact that the women’s contracts contained a mobility clause.  Whilst the mobility clause was not in fact used, the contractual position could not be ignored and thus the women were to be considered as being able to work throughout the local authority in the same way as the men.  

Steeles Law Employment Legal Executive, Sally Andrews, commented:

“The case demonstrates that a broad approach will be taken in construing the meaning of 'same establishment' in equal pay claims and will not be restricted to employees working in the same geographical location.  Unless the facts prove that each group of employees are working for employers that are to be regarded as separate and distinct entities, the presumption will be that they are working for the same establishment."