Tesco’s £4bn equal pay bill

Tesco is facing an £4 billion equal pay claim from thousands of female shop workers. If this claim is successful, it could result in the UK’s largest ever claim for equal pay, potentially opening the floodgates for other similar claims.   

Tesco claims that they pay all staff “fairly and equally” but recent figures suggest otherwise. Female shop workers have alleged that they earn as much as £3 less per hour than their male co-workers which is a substantial difference, especially when put into perspective – equating to £20,000 per worker over a six-year period.

This case is of particular interest given the upcoming gender pay gap reporting deadlines. Employers are advised to review their pay structures thoroughly and, if they are required to report their gender pay gap information, that they give a narrative of their figures to identify how the gap (if any) has occurred and what steps are going to be taken to rectify it.

We would suggest that companies begin by reviewing pay scales or grades and if there are major discrepancies or concerns, please contact us so that we can assist you with taking steps to address the gap.