Senior associate Henna Elahi has provided comment in ICLG News on what employers must be aware of regarding equal pay compliance, and the legal differences between unequal pay and the gender pay gap.

Commenting on the legal issues employers face, Henna said: “The Equality Act 2010 sets out an employer’s legal obligation to ensure that all employees performing work of equal value are compensated equally regardless of gender.

“In instances where there is a difference in pay between a man and a woman doing equal work unrelated to gender, the employer must demonstrate that any such reason is fair in the circumstances, which may for example be differing experience or performance levels.

“Assessments determining a difference in pay can be complex, and can lead to employers facing unequal pay claims if they cannot robustly demonstrate their reasoning.”

Henna further commented: “Unequal pay is a specific occurrence of discrimination where an employee is paid less than another employee for work of equal value due to a protected characteristic such as gender, race or religion. The gender pay gap, however, is the disparity in earnings between genders, not necessarily only as a result of discrimination, but also other factors such as job type or whether someone is working on a full or part time basis.

“The Equality Act 2010 is vital legislation, having replaced the Equal Pay Act 1970, to continue to reduce the gender pay gap. Should a female employee be paid less than a male counterpart for similar work of equal value, this would be protected by the Equality Act 2010.”

Henna’s comments were published in ICLG News, 17 April 2025.