Equal pay and allowances

Case 22: The facts

Four female cleaners and home helps brought an equal pay claim, comparing their work with that of male refuse workers, gardeners and road workers. Both groups of workers received the same basic hourly rate, but the men were also entitled to fixed bonuses and attendance allowances. A claim for equal pay must compare a similar term in the contract.

The ruling

The EAT held that, because the bonuses and allowances were paid for every day of attendance at work, they were part of the payment for normal working hours and did not constitute a separate contract term. This meant they should be included in the hourly rate, and the women were entitled to the same rate.

Redcar and Cleveland BC v Degnan and others UKEAT/0321/04