Birmingham CC and unions agree to settle post 2008 equal pay claims

In a statement the council said: “This will avoid lengthy and costly employment tribunals hearings affecting approximately 11,000 cases, which could have continued for several more years further delaying payments to employees.”

Birmingham said affected individuals would receive a letter from their solicitors Thompsons in the near future.

An application has also been made to postpone the related Employment Tribunal hearing which was due to start on Monday, 7 October.

In November 2012 Birmingham estimated its combined actual and potential equal pay settlements from 2007/08 to 2011/12 at £757m. Issuing its annual audit letter, it warned that the issue of affordability presented a major challenge.

The council’s position had worsened considerably when it lost a Supreme Court bid to strike out equal pay claims brought by 174 former employees.

The Supreme Court concluded that equal pay cases could be brought not only in the Employment Tribunal, where the time limit for bringing claims is six months, but also in the civil courts, where the limit is six years.