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New equal pay risk for Academies?

5 November 2012

If your employee has a claim for equal pay, how long after the inequality stops should they be able to bring a claim against you?

This issue was decided by the Supreme Court in the case of Abdulla v Birmingham City Council. The Court found in the Claimants’ favour. So where the 6 month time limit in the Employment Tribunal has been missed, equal pay claims can now be brought in the High Court where the time limit is 6 years.

Staff who now work at an Academy but transferred there from Local Authority employment, may now be able to bring claims that were previously out of time. Whether the costs and potential liability of that claim is the responsibility of the Academy or the Local Authority will depend on what has been agreed within the Commercial Transfer Agreement at the time of conversion.

Whether the change will result in a flood of new claims for historic inequality in pay remains to be seen.

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