Reader Questions Pay Disparity With Newer Colleague

A reader has raised concerns about a significant pay gap with a colleague who joined the company more recently. The colleague, hired two years ago, earns £20,000 more than the reader for what is described as a similar role.

According to the reader's boss, the higher salary was offered to entice the new employee from a rival company. The boss also cited the colleague's age, noting they are ten years older and have accumulated higher earnings over a longer career. However, the reader, who is also a woman, questioned if there are grounds to challenge this disparity.

HR expert Kate Underwood clarified that an equal pay claim is not viable in this scenario as both individuals are women. However, she stated that if age is the reason for the pay difference, it could be considered discrimination, requiring the employer to provide objective justification. While paying a premium to attract talent from competitors can be lawful, the explanation of "they are older" is not considered a valid market-rate justification. Given the colleague has only two years of service, length of service cannot be the basis for the pay gap, as the reader has been with the company longer.

Underwood advised the reader to submit a formal written grievance, quoting the boss's exact reasoning and requesting clarification on the pay range criteria for the role and what the £20,000 premium is intended to purchase. She also noted that discussing pay with colleagues is not a barrier when investigating potential discrimination, and that discrimination claims typically have a strict time limit, requiring action within three months less one day of the discriminatory event.

Glenn Hayes, a partner at Hill Dickson, added that employers can legally justify pay differences by referencing factors like greater skills and experience. He also noted that even without an immediate legal claim, employees often address pay disparities through formal grievances or by citing general unfairness. Hayes cautioned that a substantial pay gap of £20,000, if unaddressed by the employer, could potentially constitute a fundamental breach of contract, entitling the employee to resign and pursue a constructive dismissal claim.