Old equal pay claims can be brought, High Court rules

Employers could now be faced with old equal pay claims, it has been warned, following a High Court decision that employees can bring a claim within six years from the date of the breach.

It is not believed that an equal pay claim has been brought in the High Court before. Traditionally employees have pursued equal pay claims through an employment tribunal and such claims are subject to a tight timescale as they need to be brought within six months from the end of employment.

However, in the case of Abdulla v Birmingham City Council, the High Court has now 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 this case, 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. The cases will now proceed to decide whether the women were entitled to the bonuses.

“However, the prospect of having to pay the employer’s legal costs may act as a barrier to employees bringing claims with little prospect of success.

“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.

“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.”