Pay Gap Claim: Woman Paid £20,000 Less Than Newer Colleague A woman paid £20,000 less than a colleague in a similar role asks whether she can challenge the pay gap after being told age and recruitment costs justify it. A woman has discovered that a colleague who joined two years ago is paid £20,000 more for a similar role, and has asked whether she can challenge the pay gap after her boss said the difference reflects what it cost to recruit the colleague from a rival company. The colleague is also ten years older with higher earnings built up over a longer career. Both employees are women, and the reader asked a Mail on Sunday personal finance column what other route might be open to her. Why a Standard Equal Pay Claim FailsHR expert Kate Underwood said the door to an equal pay claim is shut because both employees are women. Equal pay claims typically compare the treatment of men and women doing equal work.However, Underwood said that if the reason for the pay gap is age, the difference becomes age discrimination, and the employer has to justify it objectively.Paying what it costs to prise someone away from a rival can be lawful, and employers defend that practice successfully all the time, Underwood added. But she argued that the statement that the colleague is older is not a market rate.Underwood also noted that the colleague has only two years of service. If the reader has been at the company longer, length of service cannot be the justification, because on that measure the longer-serving employee should be ahead.Steps to Challenge a Pay GapUnderwood advised putting in a written grievance and quoting the boss back word for word. She suggested asking for the criteria for the pay range for the role and what the extra £20,000 is actually buying.She said any rule against discussing pay with colleagues should be ignored, because it is unenforceable when an employee is checking for discrimination.She also warned about time limits. Discrimination claims usually have to be started within three months less a day, so the clock matters.Glenn Hayes, a partner at Hill Dickson, added that employers can justify a difference in pay by citing factors other than age, such as greater skills and experience.Grievance and Constructive Dismissal OptionsHayes said that even when there is no immediate legal claim, employees often challenge pay disparities through a formal grievance, by requesting a pay review, or by citing general unfairness.He said a £20,000 gap is significant. If the employer fails to take steps to address it, that action or inaction could amount to a fundamental breach of contract, entitling the employee to resign and bring proceedings for constructive dismissal.The reader is paid £20,000 less than a newer colleague, according to the Mail on Sunday column. The case highlights how pay disparities can arise even between employees of the same sex, where equal pay law does not automatically apply.What the Case Means for Pay TransparencyThe exchanges show that a pay gap can still be challenged if age, recruitment costs or experience are behind it, but the route differs from a standard equal pay claim.Underwood and Hayes both pointed to internal processes, including a formal grievance and a pay review request, as practical steps before any tribunal action.Employers who rely on market rates to explain a gap may need to show evidence that the premium was genuinely needed to hire the person from a rival company, rather than simply pointing to age. Employees are also advised to document what they are told and to act before the three-month deadline for discrimination claims passes.