In a landmark judgement, it has been found that supermarket chain Tesco does not pay female workers equally for the same amount of work as their male equivalent. Each member of staff affected could be entitled to six years of backpay, amounting to at least £10,000 each.
Thousands of shop floor staff, the majority of which are women, accuse Tesco of paying them £3 less than male warehouse workers. They state their work is “equal value” and the pay should represent this.
Legal action first began in 2018, initiated by the Tesco Action Group. It estimates that approximately 25,000 females are owed compensation after being underpaid for seven years. Leigh Day, the law firm representing employees of Tesco, previously reported that workers could be owed at least £10,000.
The landmark decision will ensure the Government pays equally going forward. It also sets a precedent for cases going forward. In March, 44,000 Asda employees won a case in the Supreme Court. This paves the way for the Tesco legal battle – which could go on for years.
Tesco the latest company affected by Brexit change?
This case is believed to be one of many major changes by the EU before Brexit changes take hold. Despite being passed before Brexit changes come into effect, it will bind the UK Government going forward.
On Thursday, the EU Court of Justice argued that EU law has a direct effect in equal pay proceedings. The Tesco case is currently being heard by the EU courts as they were sent to the tribunal before the UK left.
Tesco counters that EU law can not be relied on in equal pay claims. This is because the same people are not responsible for the terms and conditions of employment in stores and distribution centres.
Leigh Day currently represents over 40,000 store workers within five stores in similar equal pay claims.
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