Unequal pay affects workers across industries, undermining their financial wellbeing and morale. It leaves many feeling undervalued and unfairly treated, especially when linked to discriminatory practices like gender pay gaps, racial bias, or unequal pay for similar roles. Today, in the UK, many struggle to achieve workplace equity. In this guide, we explore how group litigation can help them recover unpaid wages and force employers to end unfair pay practices.
Jargon buster
Understanding legal terms is crucial when navigating group litigation. Helping to remove the jargon, here are some key terms explained in plain language:
Wage disparity
Wage disparity occurs when employees doing similar or comparable work are paid differently without a valid reason, such as skills, experience, qualifications, or working conditions. Pay disparities based on gender, race, or other protected categories are illegal.
Unpaid wages
When we talk about ‘unpaid wages’ in the context of wage disparity claims, we don’t mean situations where an employer has failed to pay wages owed for hours worked. Instead, unpaid wages refers to the difference between what an employee received and what they should have received if they had been paid fairly according to legal standards.
The Equality Act 2010
The Equality Act 2010 is a UK law designed to protect individuals from discrimination in the workplace and society. It ensures all employees receive fair pay regardless of gender, race, disability, or other protected characteristics.
Group litigation
Group litigation is a legal process where multiple individuals with similar claims join forces to file a collective lawsuit. This is often used when many people are affected by the same wage disparity issue, allowing them to strengthen their case and share legal costs.
No-win, no-fee
Also known as Conditional Fee Agreement (CFA), a no-win, no-fee arrangement lets you take legal action without paying upfront costs. If the case is successful, you will likely pay legal fees from the compensation received. If the case is unsuccessful, you don’t pay a penny.
How group actions can help address unequal pay and recover unpaid wages
Instead of pursuing individual claims, group actions allow affected workers to unite under one legal action, amplifying their voices, strengthening their case, and making it easier to fight for fair compensation collectively.
Here are some compelling benefits of using group litigation in equal wage claims:
Strength in numbers
One of the primary benefits of group litigation is that it offers strength in numbers. When multiple workers unite to pursue a common claim, they amplify their voices and put greater pressure on employers to address the issue. Large corporations may be more inclined to negotiate and settle group litigation claims – not least because of the bad publicity and potential legal costs.
Shared legal costs
The cost of pursuing legal action is a significant obstacle for many workers. Particularly those in lower paid jobs. Group actions help alleviate this burden by sharing legal expenses among all claimants. In short, by pooling resources, group actions make it possible for workers to access high-quality legal representation they might not be able to afford on their own.
No-win, no-fee
One of the most compelling features of group litigation is the availability of no-win, no-fee arrangements. These arrangements make it easier for workers to come forward and join group actions, knowing they won’t face financial hardship if the case is unsuccessful.
Challenging large corporations
When workers come together, they can highlight the systemic nature of wage disparity, drawing public attention and increasing pressure on companies to change their policies to ensure compliance with the Equality Act 2010.
Common causes of wage disparity and unpaid wages
Wage disparity leading to unpaid wages can happen for various reasons, including discriminatory practices. Below are some of the most common causes:
Gender pay gaps
The gender pay gap remains a significant issue in the UK, with many women earning less than their male counterparts for similar work. In some cases, women are not promoted to higher-paying roles at the same rate as men, contributing to long-term wage disparities.
Racial discrimination
Racial discrimination plays a significant role in wage disparity. Studies have shown that minorities often earn less than their white counterparts, even when performing the same roles with similar qualifications – often leading to significant unpaid wages for affected individuals. In some cases, workers from minority backgrounds may also experience discrimination in job assignments, being placed in lower-paying positions despite their qualifications and experience.
Unequal pay for equivalent work
Another common cause of wage disparity is unequal pay for equivalent work, which occurs when workers performing similar or identical roles receive different levels of pay. This is often due to discriminatory pay structures that favour certain groups over others. For example, retail workers may earn less than warehouse staff, even though both jobs require similar skills and effort.
Misclassification and worker rights
The misclassification of workers as ‘independent contractors’ instead of ‘employees’ is a growing issue in the UK, particularly in the gig economy. This practice often deprives workers of their rights to minimum wage, holiday pay, and other benefits, resulting in wage disparity and unpaid wages.
Examples of high-profile unfair pay cases
Unfair practices have led to hundreds of thousands of employees being underpaid. But group litigation can address this imbalance. Here are some recent actions you might have heard about:
Uber
Uber drivers won a landmark claim in July 2020, which gave them worker status. This means they are now entitled to the National Minimum Wage and holiday pay. This case illustrates how effective group litigation can be. The case also set a precedent for other drivers and couriers working as independent contractors.
Tesco
Tesco is under fire for not paying its staff fairly, with distribution centre employees pocketing up to £3 more per hour than store workers. Affected Tesco store workers could be owed thousands of pounds in compensation each.
Morrisons
Morrisons pays its mostly male warehouse employees more than its predominantly female store workers. Lawyers are helping affected employees claim compensation for the pay they have not received. Both men and women working on Morrisons’ shop floors could have a claim if they were paid on an hourly rate.
The Co-op
Many current and former Co-op store employees believe they’ve been paid unfairly compared to colleagues in other roles. Lawyers are helping them take action and stand up for their rights. Some employees could be due as much as £24,000 in unpaid wages.
Asda
Asda’s alleged unequal pay practices have sparked outrage as distribution centre employees get up to £3 more per hour than store workers. Affected Asda employees could be owed thousands in compensation. Men and women working on Asda shop floors could have a claim.
Sainsbury’s
Legal experts believe that in-store and warehouse staff at Sainsbury’s perform jobs of equal value, and therefore, deserve equal pay. But Sainsbury’s pays its distribution centre staff between £1.50 to £4.00 an hour more than its store staff. The pay differences at Sainsbury’s may be linked to gender, but male and female shop floor employees could have a claim.
Next
Next is facing a £30 million equal pay claim. In August 2024, over 3,500 current and former Next employees won a huge battle in their fight for equal pay when an employment tribunal ruled Next store staff should have been paid the same rate as Next warehouse employees.
Just Eat
Just Eat couriers are currently – and some lawyers believe wrongly – classed as self-employed independent contractors. Lawyers have launched group action claims to help affected couriers claim back the money they should have received from Just Eat.
Bolt
Bolt drivers work as self-employed independent contractors. But lawyers believe that the terms of their contracts means they should be classed as ‘workers’, and entitled to a range of rights and protections. If the Bolt claim is successful, drivers could receive thousands of pounds in backpay.
Steps to take action and join a group litigation for wage disparity
If you have been affected by wide-spread wage disparity and unpaid wages, joining a group action is an effective way to seek compensation. Here’s how to find a group action claim and pursue justice:
1. Search for ongoing group claims
Join the Claim lists active claims on its website, allowing you to explore cases that align with your circumstances. You can also sign up for updates to stay informed about new group actions that may be relevant to you or your colleagues.
2. Check your eligibility
Join the Claim offers a handy online checker to see if you qualify for a wage disparity claim. If eligible, you’ll be asked if you’d like to connect with the law firm managing the case. This way, you can quickly access the legal support you need to move your claim forward.
3. Join the Claim
Once signed up, legal experts will help you build a strong case. They may ask for evidence to support your claim such, as payslips or employment contracts. They will also gather evidence of discriminatory practices to strengthen your claim.
How to claim for unpaid wages due to wage disparity
If you think you’ve been affected by wage disparity leading to unpaid wages, look at the latest group action claims on our website. If you find a suitable claim to join, check your eligibility and take the first step towards reclaiming what you are rightfully owed.
Together, we can create a fairer and more equitable workplace for all.
