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What could pay discrimination look like?
Pay discrimination can arise in different ways, including:
- Being paid less than a colleague doing the same or similar work
- Having less favourable contractual terms
- Getting fewer shifts
- Being denied a bonus
- Missing out on promotion
- Losing pay because reasonable adjustments were not made
For disabled employees, pay issues can sometimes arise where an employer has not properly considered adjustments that would allow them to work, progress or maintain earnings.
For ethnic minority employees, pay discrimination may involve direct treatment, workplace rules or practices that disadvantage them, or a lack of transparency that makes unfair pay differences harder to challenge. Each case will depend on their individual facts and the key question is not only whether two people are paid differently, but why that difference exists and whether it is lawful.
A recent Telegraph article has reported on proposals to expand pay discrimination protections linked to race and disability.
The article follows a government consultation, published on 14 July 2026, which looks at how the equal pay and pay discrimination framework could be improved. The consultation considers whether legal protection against pay discrimination because of race or disability should be strengthened, so that it is more closely aligned with existing equal pay protections linked to sex.
The government says the current system has become too complex, expensive and slow, with some Court and Tribunal cases taking many years to resolve.
What is being considered?
At present, equal pay claims mainly relate to sex. The government is not proposing to simply copy that system for race and disability claims. Instead, it is considering whether pay discrimination linked to race or disability should continue to fall under the Equality Act 2010, but with stronger remedies where a claim succeeds.
This could include giving Employment Tribunals the power to require changes to a claimant’s contract where pay-related discrimination because of race or disability is proven.
For employees, this could be important because pay discrimination is not always obvious. An employee may not know what colleagues are paid, how pay decisions are made, why a bonus has been withheld, or whether they have been offered less favourable terms than someone doing similar work.
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What should employees do if they are concerned?
Employees who are concerned about pay discrimination should try to keep a clear record of what has happened.
Useful evidence may include:
- Payslips
- Contracts
- Bonus letters
- Appraisal documents
- Emails
- Rota information
- Internal policies
- Any explanation provided by the employer
In some cases, the issue may be raised informally. In others, a formal grievance may be appropriate. Employees should take specialist advice before resigning, accepting a settlement agreement, or allowing time limits to pass.
Acas, the UK’s independent public body for workplace advice and dispute resolution, must usually be contacted before bringing most Employment Tribunal claims. In many cases, the current time limit is three months less one day from the act being complained about, although the rules and deadlines can depend on the type of claim.
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TLW Solicitors’ comment
“Pay is one of the most sensitive issues in any workplace, and it can be very difficult for employees to challenge. Many people do not know what colleagues are earning, how decisions are made, or whether a pay difference has a lawful explanation.
A lack of transparency can make discrimination harder to identify, particularly where race or disability is involved. If these government proposals make it easier for employees to understand and challenge unfair pay decisions, they could be a welcome step forward.
Employees should not ignore concerns about pay, bonus, progression or contractual terms if they believe a protected characteristic may have played a part. These cases can be complex, but early advice can help clarify whether there is a legal issue and what steps may be available. Please get in touch – we’re here to provide clear advice.”
How TLW Solicitors can help
TLW Solicitors advises employees on employment law issues, including discrimination at work, Employment Tribunal disputes, grievances, settlement agreements, unfair dismissal, constructive dismissal and workplace disputes.
If you are concerned that you have been paid unfairly, treated differently, denied progression, or disadvantaged at work because of race, disability, sex or another protected characteristic, we can help you understand your position and make informed decisions.
Strict time limits can apply in employment law claims, so it is important to seek advice as soon as possible.
