Shona Boyle worked at construction manufacturer Caterpillar Northern Ireland from 2003.
In 2019 she raised with her employer that she was paid differently to three male employees, despite performing the same role.
A tribunal ruled that she had been paid unfairly on the basis of her sex. Last Thursday (18 July), judges awarded Boyle £305,719.
The case highlighted employers' obligations to ensure that they pay employees equally for the same work, commented Karen Corry, senior HR consultant at Belfast accountancy and business advisory Baker Tilly Mooney Moore.
Speaking to HR magazine, she said: "The landmark case of Shona Boyle vs Caterpillar NI underscores the profound risks associated with unequal pay practices.
"Boyle's successful claim highlights the severe legal, financial, and reputational consequences companies may face when found guilty of gender pay discrimination. This ruling serves as a crucial reminder that such practices will face intense scrutiny and legal challenges."
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Boyle was employed under a lower salary scale, labelled as SG23, than the three male employees she used as comparators, who were on an SG24 scale.
Boyle challenged the discrepancy between her pay and that of three male employees and highlighted tasks she undertook that went above and beyond her pay grade. However, Caterpillar refused to raise her pay.
The tribunal noted that following Boyle's questions about her pay grade, HR did not conduct a job evaluation to compare her duties to her job description.
Boyle then took her equal pay claim to tribunal.
Caterpillar argued that two of the colleagues used as comparators were project managers, so should be paid higher than Boyle. However, after hearing evidence, the tribunal ruled this was not true.
The tribunal ruled that Boyle was entitled to back pay, to cover the period that she had been underpaid. It ordered Caterpillar to provide her with an equality clause in her contract, which would provide the same pay and benefits as her male colleagues going forward.
John McShane, employment partner at McCartan Turkington Breen solicitors, who represented Boyle at tribunal, commented that the judgment showed equal pay in Northern Ireland is a "fundamental concern".
"The Equal Pay Act in Northern Ireland is an act from 1970 and we're still confronting the failures of equal pay in 2024. Equality of pay is a fundamental entitlement which should be acted upon by employers to ensure that [there is no] discrimination between men and women," he told HR magazine.
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McShane said that the decision should be a warning to employers who are not taking equal pay seriously.
"It seems somewhat concerning that employers are not actively considering employees that do work of equal value, and they're not confronting that issue by resolving what is essentially a potentially explosive consequence if it isn't properly addressed and equal pay ensured. It simply is not an issue where you can stick your head in the sand and hope it passes you by," he added.
Employers should regularly review their pay to ensure they are not at risk of equal pay claims, Corry explained.
She said: "To achieve gender pay equity, employers should implement regular pay audits and standardise compensation practices to ensure equal pay for equal work.
"They should also provide equal access to training, mentorship, and career advancement opportunities. Maintaining transparent policies and fostering an inclusive organisational culture are vital, along with actively supporting diversity and inclusion initiatives to ensure fair treatment of all employees."
Complaints of unequal pay should be treated seriously, she continued.
"When addressing complaints of unequal pay, employers are obligated to conduct prompt and thorough investigations, safeguard complainants from retaliation, and take corrective actions if disparities are uncovered," she added.
"Effective communication and ongoing training on equal pay policies are essential for building trust and ensuring compliance."
