With recent figures showing that nearly two-thirds of Brits believe more needs to be done to achieve gender equality in the workplace, new research has revealed that equal pay is still one of the top HR issues in England and Wales.
Despite progress in recent years towards a fairer workplace environment for all genders, Ministry of Justice figures show that further change is needed, with more than 13,500 claims related to equal pay issues filed in the last year.
Failing to spot the red flags regarding HR, particularly related to gender equality, can quickly land a business in trouble, potentially resulting in being taken to an employment tribunal.
To help business owners avoid this fate, the experts at money.co.uk business insurance have analysed government data to reveal the most common issues that lead to workplace claims and offered tips to prevent them.
The most common issues that are driving workers to take their employers to court over:
| Rank | Claim type | Number of claims (Oct 2022-Sept 2023) |
| 1 | Unauthorised deductions (formerly Wages Act) | 25,821 |
| 2 | Working Time Directive | 21,390 |
| 3 | Breach of contract | 20,798 |
| 4 | Unfair dismissal | 16,527 |
| 5 | Equal pay | 13,594 |
| 6 | Disability discrimination | 7,312 |
| 7 | Redundancy pay | 4,934 |
| 8 | Redundancy – failure to inform & consult | 4,762 |
| 9 | Race Discrimination | 3,963 |
| 10 | Sex Discrimination | 3,771 |
- Unauthorised deductions and wage-related claims
The most common claims relate to unauthorised deductions. This suggests that many employees face issues with their wages, whether through improper deductions (25,821 claims) or failure to meet the minimum wage (3,728). Additionally, 701 claims were made regarding written pay statements, indicating that some employers may not provide proper pay slips.
- Working time and contractual claims
Working Time Directive claims (21,390) and breach of contract claims (20,798) are also common. These issues often relate to disputes over working hours, overtime, and other contractual obligations. The significant number of claims suggests a lot of non-compliance or misunderstandings about employment contracts and working time regulations.
- Discrimination claims
Discrimination claims are a significant portion of employment tribunal cases. Equal pay claims, in fifth place (13,594), are particularly high, reflecting ongoing gender pay gap issues. Disability discrimination (7,312) is the most common type of discrimination claim, showing the challenges many disabled employees face in the workplace. Race (3,963) and sex discrimination (3,771) are also notable.
Kyle Eaton, money.co.uk business insurance expert, offers his tips on how to prevent HR issues and promote positive employee relations:
- Clear policies and procedures
“Establish clear procedures and policies that are easily accessible to all employees, including equal opportunities policy, grievance and disciplinary procedures, and anti-harassment and anti-bullying policies.
- Effective communication
“Promote open communication with regular team meetings and anonymous feedback systems. An open-door policy encourages employees to discuss issues directly with management.
- Business insurance
“Employment practises liability insurance (EPLI) is the most comprehensive coverage for these types of claims, but directors and officers (D&O) insurance, legal expenses insurance, and employers’ liability insurance also provide valuable protection.
“By ensuring these policies are in place, businesses can better manage risks, protect their financial health, and focus on fostering a positive and legally compliant work environment.”
Would this be of interest to you and your readers? You can download the full research as well as some supporting royalty-free images here.
