As a general rule, equal pay claims can be brought in the Employment Tribunal within 6 months of the end of the employment to which the claim relates. The Equal Pay Act 1970 (and now section 122 of the Equality Act 2010) provides that a Court may strike out a claim or a counter-claim if it appears to the Court that the proceedings could be more conveniently determined by an Employment Tribunal. In the case of Abdulla and others v Birmingham City Council, 174 equal pay claims were brought against the Council in the High Court. The Council applied for strike out of these claims on the basis that the claims could be more conveniently determined by an Employment Tribunal. The time limit for bringing a claim in the Employment Tribunal had elapsed and therefore allowing strike out in the High Court would debar the claim. The Council argued that if the Court considered that the claim could be more conveniently tried in the Employment Tribunal, it should not refuse to strike out the claim simply because the Claimants were time barred from bringing the claim in the Tribunal. Unfortunately for the Council, the Court did not accept this argument. The Court considered that it would not be consistent with the wording of the legislation to consider that a matter would be more conveniently dealt with by a Tribunal if the Tribunal could not deal with the matter due to the claims being out of time. The Court further considered that the legislation does not oblige a Court to strike out a claim, where it could more conveniently be heard in the Tribunal, it merely allows the Court to exercise its discretion to strike out. To exercise this discretion, which would result in a claim, that had prospects of success, not being heard, was not in the interests of justice. The claim will therefore proceed in the High Court. This decision is bad news for employers as it will allow employees who have missed an Employment Tribunal deadline another chance to bring their claim in the civil court. This decision will only apply to equal pay claims and other breach of contract claims. It will not allow employees to bring claims for unfair dismissal in the civil courts. Perhaps the positive point from this case is that there will be more financial pressure on Claimants in the civil courts as they are responsible for their own costs and should their claim be unsuccessful, they will be liable for some of the employer's costs. However, this is likely to be of small comfort to the Council in this case, who will now be engaged in costly High Court proceedings, with potentially a significant award made at the end of the case, affecting all of its staff, not just those involved in the proceedings. As with any equal pay issue, our advice is to act now. Look at your pay structures and identify any inequalities. If you cannot justify the inequalities, then take steps to equalise pay now, before a claim is brought against you. Trethowans Employment Law Team is made up of specialist employment solicitors acting for international, national and major regional employers, as well as senior executives and other workers, on all aspects of employment law. For More information visit http://www.trethowans.com/business_services/employment_solicitors/
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