Tesco equal pay case highlights “abuse of female workforce”
8th February, 2018
Helen Watson, Head of Employment Law at Aaron & Partners LLP warns that the latest gender pay gap story to hit the headlines could be just the tip of the iceberg
Supermarket chain Tesco hit the headlines for all the wrong reasons this week after it was reported that more than 1,000 of its female staff have sought legal advice on a dispute over equal pay.
Lawyers acting on behalf of the women have said that hourly-paid female store staff have been earning less than the company’s male staff, even though the value of their work is comparable.
If their case is successful, Tesco could be facing Britain’s largest ever equal pay claim and a possible bill running to £4bn, with thousands of women who work at the supermarket in line to receive back pay totalling £20,000.
As reported by the BBC, Tesco has said it works hard to ensure all staff are paid “fairly and equally” but the firm acting on behalf of more than 100 of the women is now preparing a legal challenge demanding parity with male staff members.
She said: “The Tesco case is a prime example of why gender pay gap reporting within business is so important.
“Equality legislation has been in place since 1984 to help enforce equal pay, but this shows how even established household brands have been getting away with the abuse of their female workforce, paying them less than their male counterparts for comparable work.
“The spotlight is now firmly on gender pay gap reporting and I expect we will see a lot more cases like this emerging in the months ahead.
“It’s clear that the glass ceiling exists in many companies, and there is clear inequality in what women at all levels of employment are receiving in terms of remuneration and opportunity.
“Our advice to the business community is that it’s important to review the gender pay gap now and seek legal support and advice.
“The equal pay claim against Tesco could see them hit with an eye watering bill of up to £4bn and it is a stark example of what could apply, albeit on a lesser scale, to smaller businesses anywhere in the UK.”
For any further advice regarding gender pay gap reporting, please our Employment department at Aaron and Partners LLP.