Sex Discrimination Cases Double

by Joanne Stronach

The latest figures issued by The Tribunal Service will be uncomfortable reading for employers. The statistics from the Employment Tribunal and Employment Appeal Tribunal show that in 2006/07 there were 132, 577 claims - a considerable 15% increase on the previous year.

There has been growth across almost every type of claim including complaints of breach of contract, redundancy pay and the Part-Time Workers Regulations. The only claims showing a decrease are those related to the Working Time Directive, race discrimination and complaints of “suffering a detriment”.

The biggest increases are in claims of sex discrimination which have doubled from 14,250 to 28,153. Confrontational and aggressive management styles like those shown by TV bosses like Gordon Ramsey and Alan Sugar have been blamed unfairly for the overall increase. Nor have women suddenly taken a step backwards at work.

The reality is that the increase is being largely driven by the huge increase in equal pay claims.

Equal pay is now the second biggest cause of complaint behind unfair dismissal. In 2006/7, there were 44,013 equal pay claims, compared with 17,268 in 2005/06 – a whopping 155% increase.

For at least two years there have been big rises in equal pay claims. That has a knock-on effect on other types of claims because it’s normal to see a number of complaints raised in the one claim and there has been an increase too in multiple claims. These equal pay claims are being made in bulk mostly by women against big public sector employers like councils and NHS trusts. The Tribunals Service reports that it now has two dedicated teams working on NHS equal pay cases. In 2005 Cumbrian health workers successfully brought a £300 million claim against North Cumbria Acute Hospitals NHS Trust.

There has not been any change in the law to trigger these claims which are being brought under the thirty year old Equal Pay Act. However, trade unions, in particular, have identified that there have been some genuine, long-standing inequalities in pay. They are now giving a lot of support to people who want to bring claims while some solicitors are offering no win, no fee representation. As a result, fewer cases are being settled pre-hearing and more are going to a full Tribunal.

Added to this, some recent decisions have gone in favour of employers so more are being advised to fight a case rather than make an offer to settle.

Employers should be very careful to ensure men and women are treated equally and that pay scales are fair when comparing men and women doing similar jobs at the same level rather than exactly the same job. To succeed in a claim under the Equal Pay Act, women must prove the work they do is either work rated as equivalent , like work or work of equal value to male workers.

Some increases in the Tribunal Service figures are related to changes in legislation. Claims of disability discrimination have increased by over 20%, but it’s likely that the increase is due to a widening of the definition of disability to include illnesses such as stress or anxiety.

The Employment Equality (Age) Regulations 2006 came into force in October 2006 and within six months the Employment Tribunals had already seen nearly 1000 claims.

Fighting a claim is not just time-consuming, it can also be expensive if you lose. The average amount of compensation awarded at Tribunals in the year 2006/7 was nearly £8,000. Cases with a discrimination complaint were even more costly. The mean award for sex discrimination cases was £10,052, with the race discrimination average being £14,049 and disability discrimination being £15,059.

A small number of employers are still failing to pay the National Minimum Wage. Claims against such employers nearly doubled in 2006/7. The hourly rates of pay increased again from 1st October 2007 as follows:

* Adult rate (workers aged 22 and over) will increase to £5.52.
* Development rate for 18-21 year olds will increase to £4.60.
* Development rate for 16-17 year olds will increase to £3.40
* The rate for the accommodation offset will increase to £30.10 per week (£4.30 per day).

Keeping updated on changes to legislation is undoubtedly a factor in avoiding Tribunal claims. On Thursday 18th October, Burnetts’ six-strong employment law team will be hosting their Annual Employment Law Update at Carlisle Racecourse from 3.45pm – 6.30pm. The session costs just £35 plus VAT per delegate.

As well as a summary of the key developments in employment law over the last year, this year’s seminar will also cover the Equal Pay issues facing all employers and "Without Prejudice” discussions & negotiating terminations.  To make a booking or for further information, visit our events' pages.

For more information on these statistics visit The Tribunals Service.

Joanne Stronach is a Partner in the employment law department of Burnetts Solicitors in Carlisle, Cumbria.

Oct 2007