What is Material Factor Defence?
An equal pay claim under the Equality Act 2010 relies on the claimant demonstrating that they are engaged in equal work to a comparator of the opposite sex. They can do this by showing they are engaged in:
- like work;
- work rated as equivalent to the comparator under a Job Evaluation Scheme (JES); or
- work which is equal to the comparator’s in terms of the demands made on the claimant.
However, the sex equality clause has no effect where the employer can show that the difference in pay is because of a material factor (such as market forces, flight risk and experience) which causes a material difference between the claimant’s case and the comparators. The material factor must genuine and not be tainted with any sex discrimination, either directly or indirectly.
Farore Law is a leading boutique law firm that has a wealth of experience in advising senior executives on employment matters. We are well placed to provide appropriate advice regarding the enforceability of contractual terms, seeking a settlement agreement and commencing or defending litigation in the High Court or the Employment Tribunal.
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