Hg sued by an ex-Director in high value equal pay claim

Farore Law are acting for a claimant in a high value equal pay, sex discrimination and victimisation claim against Hg, one of the largest tech focused private equity firms in the world. After a recent 3-week (January 2026) liability hearing in the Employment Tribunal, the parties await the judgment. 

In addition to the equal pay and discrimination claims, this case addresses a novel issue. Hg had a “bad leaver” clause in its carry documentation, which was triggered as soon as she commenced litigation. Our client, like many senior employees in the private equity market, had significant carry in the funds, a form of share in the profits. However, in this case, the carry partnership agreement contained a clause which meant that if she took legal proceedings against Hg, in relation to anything other than the express terms of the partnership deed or her contract of employment, she would be classed as a bad leaver and lose all her vested carry. After our client started employment tribunal proceedings in 2022, Hg wrote to her to inform her she was now classed as a bad leaver and that she had lost all her vested carry – which at the time was valued at around £700,000. She was aware she would lose this but felt very strongly about pursuing her claims for equal pay and discrimination. Her legal argument, which we are pursuing on her behalf, is that such a clause amounts to victimisation in law and is unlawful. 

Bloomberg have reported on the case, journalist Jonathan Browning reporting:

“An ex-director sued Hg for £10 million ($13.8 million) in an equal pay claim as part of a bitter London employment suit that’s offered a rare glimpse into the inner workings of one of the largest tech focused private equity firms. Elizabeth Wallace, the former head of portfolio talent at Hg, claims she was paid less than her male colleagues on the team. She said she had to forfeit as much as £700,000 in carried interest owed to her due to an Hg policy that treats staff as bad leavers if they begin an employment dispute. The case is currently being considered by tribunal judges. While allegations of unequal pay at financial services firms occasionally hit London’s employment tribunals, it’s rare for a private equity fund to battle allegations in public”.

Please Contact Farore Law for any further information.