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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 49779
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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If my large company takes on a friend of mine at a higher salary

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If my large company takes on a friend of mine at a higher salary to do same job title. Buyers Admin (and I have 2 years experience and am treated as senior). I train the new staff for example. I am told: "I have brought this up with my line manager and she has now confirmed that I will not be able to receive a payrise to match my experience within my current role and that they cannot give any pay rises until mid or end of year reviews (which is standard)." Next rise in 8 months time. (April employee on more too (only on 6 month rolling contract). Can I treat this as constructive dismissal or do I have to wait 8 months and must leave at my choice.
Hello, my name is ***** ***** it is my pleasure to assist you with your question today. How long have you worked there for and does your contract give you the right to a pay rise?
Customer: replied 2 years ago.

2 years / says annual review

When exactly did you start there and has an annual review been completed?
Customer: replied 2 years ago.

June 2013 and last review was Feb 2015 i was on £20500 and now £21000 the new employees are on £23000+. I was told this was most I could get (NOT in writing) and I was exceeding expectations (in writing)

Customer: replied 2 years ago.

My thought is if I were ici I had 50000 employees and want to keep wages low I could give nominal rises. BUT to get new employees I would need to give more to new ones. SO perhaps the overall motive and pay structure may matter? Or take nurses use agency nurses to suppress loyal salaries.

The law on equal pay is frequently misunderstood. Many workers believe that there is a right to equal pay across the workforce, especially for workers that perform the same or similar jobs.
However, the reality is that employers are free to pay their employees whatever they want, as long as it is above the current National Minimum Wage and in accordance with the employee's contract of employment. It is not generally unlawful to pay employees doing the same or similar jobs different rates. The only time this would be an issue is if the reasons for the difference in pay is discriminatory, due to a difference in gender. The relevant law was originally brought in to deal with the fact that many women were being paid less than their male colleagues for doing the same job.
Whilst this protection still applies, to be successful in a claim you must show that the reason for being paid less is actually gender-related. It is no good claiming that you are being paid less than someone else, unless it can be shown that the reasons for this difference in pay is due to gender.
Even if there was evidence that the reasons for the difference in pay may be gender-related, the employer could still try and rely on the 'genuine material factor' defence to defend any equal pay claim. This would occur where the employer can show that the difference in pay is due to:
• Past performance
• Seniority or length of service
• Different hours of work
• Geographical differences
• Different skills, qualifications and experience
• Pay protection following job re-grading
So unless there were discriminatory reasons for the difference in pay, there is nothing illegal in paying different rates even if the workers are performing the same job. I agree that is appears unfair and morally wrong, but unfortunately it is not illegal. Therefore it is unlikely you can use this as a reason to resign and claim constructive dismissal. You could still try and pursue this internally through a grievance but the tribunal route is going to be very risky.
I hope this has answered your query. Please take a second to leave a positive rating, or if you need me to clarify anything before you go - please get back to me and I will assist further as best as I can. Thank you
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