In Ireland, pay equity law is grounded in both national and European Union (EU) legislation. The Employment Equality Acts prohibit direct and indirect pay discrimination based on any of the nine protected grounds. This means that employers in Ireland are required to provide equal pay for equal work, regardless of factors such as race, gender, age, disability, sexual orientation, or religion.
Indirect pay discrimination can be supported by reasonable justification, which is the opposite with the direct discrimination. To succeed with an equal pay claim, the complainant must identify an actual comparator employed by the same or an associated employer who does ‘like work’ but is treated differently (e.g., paid a higher salary) on the basis of discriminatory ground. There are various grounds for defending unequal pay. For example, an employer must be able to demonstrate that pay differences between employees are not motivated by discriminatory practices, but by other valid non-discriminatory factors.
Pay equity vs. pay equality in Ireland
In Ireland, pay equity and pay equality are often used interchangeably, but there is a distinction between the two terms. Pay equality means providing equal pay for equal work, regardless of a person’s gender, race, age, or other protected characteristic. Pay equity, on the other hand, refers to the concept of fairness in pay, which may involve analysing and correcting pay disparities that are not necessarily the result of intentional discrimination.
Pay equity in Ireland is addressed through national and EU legislation, including the Employment Equality Acts and the Gender Pay Gap Information Act. These laws prohibit direct and indirect pay discrimination and require employers to provide transparency in pay differences between male and female employees.
The Gender Pay Gap Information Act requires companies to report differences in the mean and median pay between male and female employees, with initial implementation on companies with 250 or more employees and subsequent expansion to companies with 150 or more employees by 2024 and companies with 50 or more employees by 2025. This reporting requirement promotes transparency and increases awareness of gender-based pay disparities, enabling companies to take proactive steps to close the gap.