May 5, 2010

Birmingham City Council Equal Pay Case

As many of you will have seen in the news, Birmingham City Council faces a multi million pound liability after losing an Employment Tribunal case brought by predominantly female employees who did not have the same entitlement to receive bonus payments as those in jobs typically done by males. This demonstrates that equal pay settlements are still very much a live issue for many councils throughout the UK.

In addition, once settlement is made there is then the issue of the tax and National Insurance Contributions liability to consider.  HMRC will permit councils to make a central settlement with them rather than require councils to calculate the tax/NIC due under the strict method.

We have assisted a number of councils in this process and have enabled them to keep the agreed liability to a manageable level. So, if this is something which you would like to discuss further or you would like more information, please contact John Harling on 01353 644148 or 07768 446381.

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