Global Analysis: Gender Pay Gap, Employment Law, and Equality Act

This essay delves into the issue of gender pay gap, a form of gender inequality where women are often paid less than men for comparable work. It examines the statistics surrounding this issue, referencing data indicating that women are paid less on average, and explores the causes, including traditional views on women's roles, unequal sharing of caring responsibilities, and the prevalence of women in lower-paid sectors. The essay also discusses the role of employment law, specifically the Equality Act 2010, in addressing discrimination and promoting equal pay. Furthermore, it highlights real-world cases where companies have faced penalties for gender pay discrimination, showcasing the legal consequences of such practices. The study emphasizes the need for continued efforts to minimize the gender pay gap to foster a more equitable and inclusive workplace environment. Desklib provides this document along with numerous other study resources for students.

Employment Law in Global Context

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Chosen issue................................................................................................................................3
Statistics related to chosen issue under employment act.............................................................5
Cases..........................................................................................................................................10
CONCLUSION..............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
From past many decades, one out of 10 women faces issue with regards to the gender
inequality and that is why, the opportunity for women decreases. However, government
implement different laws and legislation in order to reduce the chances of pay gap in gender
(Hoff, 2021). There are many companies who actually comply with different norms and principle
in order to generate a brand image. Similarly, an employment act is all about assist to create a
better relationship with employees in all different areas that helps to conduct the work in an
ethical manner. The current study also helps to shed a light upon the chosen issue i.e. gender
inequality in which different women are discriminated on the basis of sex, pay etc.
In the same with the help of authentic sources and different statistics the present study
will assist to understand the trend and determine how the issue affect the society. Moreover, with
the help of current study, a trend has been also analysed which in turn reflect that whether the
number of cases increases or not. Apart from this, different cases will also refer in which study
determine how the issues resolved and which laws support the applicants as well.
MAIN BODY
Chosen issue
For the study, the chosen issue is pay gap in Gender which means that discrimination
among women in term of pay. Such that there are many companies who pay less to women than
minimum wages even they are eligible (Lee and Kray, 2021). This is quite common in all
countries and that is why, by applying the laws the chances of issues can be reduced. Also,
according to the statistics, it has been analysed that from 2021 the gender pay gap was increases
and most of the small as well as large companies are actually pay less to women as compared to
men. The rationale for increasing gender pay gap under labour laws is related to the old tradition
where most of the employers think that the women are only for household work and they need to
focus upon the same. As a result, they are not able to uphold the high positions in a company
because they do not get such opportunities which decreases their pay from males. However, the
rate of low in 2020 i.e. 8.2% and that is why, it shows that there is a need to make action which

in turn assist to generate a better outcome so that they can also get an access to the powerful
positions (Ofqual gender pay gap report 2021, 2021).
The gender pay gap figures also collected by the government is somehow true which
reflected that he number of working hours are also high as compared to men in the similar job.
This in turn reflected that after long working hours, company do not offer high amount to the
women and that is why, it affects the brand image and increases the number of cases with regard
to the same. Also, there are different causes of gender pay gap which included there are more
men in senior roles as compared to women and that is why, automatically employer pay less to
them. The rationale for such cause is such that majority of senior jobs actually require long hours
of working and constant availability which might be not performed by women. Hence, most of
the company actually prefer men for their leading roles which is not accurately true.
Another cause of increasing gender pay gap in the companies is due to caring
responsibility and part time roles are actually shared unequally. Such that it is a perception of
almost all the people that women are choose to care for children and that is why, they are not
chosen for their part-time jobs because they have their further responsibility (Costa Dias, Joyce
and Parodi, 2020). Thus, in UK most of the people think that men are hard workers as compared
to women and that is why, they get high pay or wages as compared to men. But actually, most of
the men prefer to pay cut to work less because they want to spend more time with their families.
The another rationale for increasing gender pay gap is such that women choose to work in low
paid roles and sectors. As they have to take responsibility of their families and that is why, they
choose low paid roles so that they can manage both roles simultaneously. That is why, choosing
low paid roles assist women to offer more flexibility and can be more family-friendly so that it
assist to make them able to understand the issues.
According to the secondary study, it has been identified that there are many causes that
lead to gender pay gap which include lack of flexible working. In this, women actually
experience discrimination because most of the employees thin that women are likely to have
caring, responsibility for children rather than performing jobs for higher roles. The statistics also
shows that one fifth of the women lost their jobs or lose out pay or promotion due to their
pregnancy which is not ethical (Jewell, Razzu and Singleton, 2020). Hence, a lack of flexible
working in different workplaces is due to imbalance in their responsibility. Thus, it leads to

discrimination in pay as well as grading systems because women are actually paid less for work
as compared to male. For example, individual are actually being appointed at different pay scale
which is based upon their abilities and that is why, it can be stated that women having less access
to high paid shift. Thus, their pay automatically lower down and this in turn leads to increase the
discrimination at workplace. Overall, it has been identified that due to less experience over the
particular job profile, company do not offer high amount to them which mainly affect the
performance of a company adversely.
Statistics related to chosen issue under employment act
According to the official website, it has been analysed that women are actually paid a
median hourly rate i.e. 10.2% less as compared to male colleagues and it is higher than 9.3% in
2018. However, government of UK keep focuses upon progress and monitor the companies
regarding the improvement in pay to women.
Figure 1: The gender pay gap has been declining slowly over time, falling approximately a
quarter over the last decade
(Source: gender pay gap in UK: 2021, 2021)

As per the above graph, it has been identified that there is a key difference between the male and
female pay and also the gender pay gap is also declining slowly over the time and this in turn
shows that companies are keep focusing upon different ways which need to be implement so that
women are also get an equal chance to uphold the higher position (Boll and Lagemann, 2019).
Also, in 2021, the gap among full-time employees was 7.9% that is somehow up in 2020. But it
is below from 9% due to pandemic and it has been also stated that it will be downward in trend.

Figure 2: Percent of employees in Annual Survey of Hours and Earnings who were furloughed
with reduced pay, UK, April 2020 and 2021
(Source: gender pay gap in UK: 2021, 2021)
In accordance with the above graph, it has been identified that as compared to previous
year, the gender pay gap reduced but majority of women actually furloughed with loss of pay as
compared to 2020. This in turn reflected that it is the perception of employers where they
preferred to pay males more as compared to female and that is why, females are forcefully grant
to leave (Brower and James, 2020). Overall, in 2020 approx 8.8 million employees were
furloughed and in both years half of these employees received reduced pay. Thus, it shows that
for both men and women the vast majority of furloughed employees were in lowest paying jobs
in which men will earn more as compared to females.

Figure 3: The gender pay gap for full-time employees aged 40 years and over is much higher
than for employees aged below 40 years
(Source: gender pay gap in UK: 2021, 2021)
In accordance with the above graph, it has been identified that with the age of 40 years,
the gender pay gap for full time employees is low than 3% since 2017. Whereas, the gender pay
gap among the age group of 40 to 49 years is higher i.e. 12%. However, there is a fluctuating
trend analyse under this category which in turn reflected that all the age group of people faces
the issue of gender pay gap (gender pay gap in UK: 2021, 2021).

Through the statistics, it has been cleared that majority of the female candidate faces
issue with regard to gender pay gap and though government implement different laws in order to
minimize the issue but most of the companies do not comply with the same that causes an
adverse impact over the employees.
As per the article published in 2020, it has determine that more than three out of four UK
companies actually pay their male staff more as compared to female and out of 17 sectors, 9
sectors pay 10% higher to men employees (gender pay gap: how women are short changed in
UK, 2020). This data reflected that under employment act, gender pay gap is considered one of
the major issue from which each city and country affected. Therefore, it can be stated that
compared with lower paid employees, always higher earners experience much larger differences
among men and women (Boll and Lagemann, 2018). In entire UK, England and Wales, Scotland
and Northern Ireland faces the highest pay gap issue and this in turn affect the women perception
to perform job in higher companies. That is why, there is a need to make steps to lower down the
gender pay gap which in turn assist to create a better outcome and attract both male as well as
females towards it.
Gender pay gap is also related to employment act of the country which in turn shows that
there is a need to minimize the issues so that it does not cause negative impact over the company
performance (Blau, 2018). Also, employment law mainly assists to regulate the relationship
between employers and employees so that effective outcome can be determine and they all work
so longer. If the workplaces have different issues pertaining to gender pay gap then it will affect
the overall performance of a company. Thus, it can be stated that there is a need to determine the
issues which causes or increases gender pay gap so that the chances of implementing ways can
be increases. As, per the law and regulation, it has been identified that each worker has three
main right which is actually offered under an act that includes pay, hours and discrimination.
Punshon and et.al., (2019) also explained in the study that in order to manage the work in a
business, there is a need to maintain the relationship with workers and employing entities so that
they all work as a team to meet the defined aim.
Apart from this, Equality Act 2010 also assists to reduce the chances of discrimination at
workplace on any basis. However, the act also contribute to reduce the gender pay gap at
workplace because specific penalties has been describe if any company found to be performed

discrimination on this basis. As per the case laws, it has also identified that the judgment is in
favour of applicants that shows that company conduct discrimination and that is why, they have
to pay penalty as well (Hotine, 2020). In addition to this, Equality Act 2010 replace anti-
discrimination laws within this single act and it also make it more flexible for the company as
well. In addition to this, with the help of this law, citizens can also understand and strengthen the
protection in some situations. Thus, there is a need to comply with the act and from last many
years, the rate of gender pay gap decreases which in turn affect the overall performance.
Cases
Ada Stores vs Brierly Judgement
Ada equal pay dispute went to the Supreme Court in United Kingdom. Approximately
35000 workers in which majority of the employees are female or women claimed to be paid
equally. Women employee work with the Ada Company has claimed that male staff are getting
more [aid as compare to the female employee work in the organization. Even if the operations,
roles, responsibilities and position are same in the organization still the pay gap is witnessed
which is creating a discrimination at a workplace. IN the Distribution depot male staff are clearly
getting more wage as compare to the female staff work in the same organization. Shop floor
workers which is predominately women employees are clearly witnessing the issue of lower
salary payment in comparison to the male staff work in the same organization or department.
Em,employees of the company are represented by the law firm Leigh Day that was further
recommended by the GMB Union (Ahrens and Scheele, 2022). Advocate studied last six years
record to verify the significance of the claim. Ada Company claimed that the role of female
employees and Make employees at a shop floor level cannot be compared. Company claimed
that m,ale employees put extra efforts at a shop floor level in comparison to other female staff
work in the same department. Company claimed that the physical activities are directly assigned
to the male staff which make them contribute more at a shop floor level whereas, female
employees are not majorly involved in the physical activities which create a difference ion the
job role of male staff and female staff.
Ada claimed that the shop floor workers that are female in majority cannot be compared
with the male staff. Company has claimed that male staff are involve in the role that carry more
physical activities in comparison to the female employees ;employees work in the same

department. The difference in the role of the employees would allow the organization to [any its
m,ale staff more in comparison to the female staff based in the organization. The differentiation
in the wage rate and salary structure of employees is due to the difference in the physical
activities carried out by the male and female employees work in the organization.
Court in the given case study considered that there must not be any difference between the salary
structure and wage rate of male and female employee work on the same position. Court claimed
that it is essential that employees in the organization get similar wage payment. It is found that
female employees are also indulged with the physical;; act while delivering the fundamental role
and responsibilities (Willmott and et.al., 2021). The difference from the side of organization in
term of salary structure between male and female is not justifiable. Company cannot be claimed
on the ground that there must be a difference in the salary structure and wage payment due to
some physical differences between employees is not find justifiable for the employees work on
the similar wage role. Court do not instruct the fact that two employees must get an equal
payment. For instance salaries are decided on the basis of the experiences, skill and such other
characteristics. But there must a some fundamental ground of deciding the salary structure of an
employee. The current scenario do not offer the most relevant and suitable aspect to differentiate
the salaries between male and female employee work in the organization.
Tesco employee win legal argument in equal pay fight
The European Court of Justice has ruled that an EU law could rely in making an equal
level of pay claims against the employees of the organization. Employees in the Tesco Company
has claimed the fact that women employees in the organization are getting a lesser salary
payment as compare to the men staff work in the organization. The claim is made on the ground
that shop floor workers eventually get a salary difference in the men and women employee work
in the organization (Wager and et.al., 2021). Company claimed on the ground that Untied
Kingdom law in the [articular area is very unclear. There is not any specific guidelines are
clarified which allow and imposed the company to treat equally to all its employees in term of
salary payment. Tesco Company claimed on the ground that role of the shop floor workers can
be compared which further create a difference in salary payment of the respective employees in
the organization. Employer and companies in United Kingdom are claiming on the ground that
salary differentiation can be seen on the comparability of the role performed by the employees in

the company. The claim is that if two employee’s role can be compared on some particular
ground than different salary structure can be decided for such employees.
Judgement of the court in the present case was simple if there is a single body responsible
for ensuring the equality the role are comparable. Court directed the fact that salary related
differences can be there but on the basis of the experience, work efficiency, skill set,
characteristic of the employees but not on the basis of the fact that two employee’s work cannot
be compared the salary structure must be different for them. Court clearly mentioned the fact
from a very long time employers have argued that UK law area is not clear in this as[aspect. The
court claimed that employer can not linger hide behind the grey area of UK law. Company has
this right to offer different salaries to different employees but on the basis of some factual
segregation like experience, background and such related areas. Gender cannot be such
fundamental basis to segregate or create a salary related differences between the employees were
in the same organization on a similar profile. Equal pay act and anti discrimination law also
favour this argument, of the Untied Kingdom court. Salary become the basis to decide the
significance of the job role and there must not be any differentiation in the salary structure based
on the gender.
US Soccer equal pay case
In United States there was a difference between the men’s team salary structure and the
women team salary structure. Both the teams play Soccer but the salaries are different for both
the team which create an issue related to the gender pay gap. The gender pay gap has been a part
of the sport industry and in Soccer as well from many years. Men’s team tend to earn in
comparison to the female athlete. Due to the salary differences discrimination and gender pay
arouse in the whole industry (Cookson and et.al., 2021). US Women Soccer Players Association
has filled a court case related to unequal pay and salary structure between the male team and a
female team in the Soccer. Form a very long time the gender pay gap was there in the country.
The entire case study disclosed that there is not any fundamental reason was found behind the
salary differences found between the male team and a female team of Soccer.
US Women Soccer Players Association has recently won a settlement of 24 million on the
ground of an unequal pay to employees. The court has claimed that the pay gap must not be there