Direct report makes more than me

Well done for raising it with your boss I'd be apoplectic.

Please give the actual legal points of how in this precise case it is sex discrimination other than 'well he has a penis innit'

Theres no way on this earth I would have the hassle of line managing someone for less pay than they're on. I wouldn't not stand for it. Kick up a fuss!

Where is the evidence of sex discrimination?

In the past, I moved into a team where 2 of the managers were paid less than some of their direct reports. One was a woman with men reporting in to her, the other was a man with women reporting in to him. The two managers were paid the same as each other. Are you genuinely telling me that this must have been sex discrimination for one but not the other? Or was it somehow sex discrimination on both sides?

Jumping to a conclusion of "IT'S BECAUSE YOU'RE A WOMAN!!!" is unlikely to be helpful for the OP. Raising a grievance on the basis of sex discrimination, without having any evidence to support it other than "he has a penis and I have a vagina", is not likely to be constructive.

Presumably the external hires the OP is hiring, at a more junior level, are not all men? That's enough to entirely undermine any grievance based on discrimination. The OP is presumably hiring women and offering them more money than she's on. If she's only hiring men then there clearly is a wider problem...

The OP would be better off focussing on herself and demonstrating why the company should pay her more unless there is actual evidence of discrimination.

You are being discriminated against. Why should you be paid less for doing and achieving more. I lead a large team in a listed company and if this was ever brought to my attention it would need to be immediately rectified (with back pay). Raise this with ACAS who will advise your next steps. Speak to HR and let them know this doesn’t sit right with you and you are seeking advice. Your own manager is useless and won’t understand equal pay rights and discriminatory protected categories. Good luck!

@BeanThereDoneIt totally agree that discrimination is frequently murky.

It all stems from an underlying misogynistic view that if a woman does a job it is much less valued than when a man does a job.

If a woman does an exceptionally good job she is more likely to be given 'soft' rewards, a bunch of flowers, a public 'thank you'.

If a man does an exceptionally good job he is more likely to get 'hard' rewards ie cash.

This is so entrenched that a lot of the time managers don't even realise they are doing it.

That sounds like sex discrimination to me and I would say so and be prepared to take external advice.

It's illegal to discriminate on grounds of sex

Yes focus on why you didn't get a pay rise on promotion but he did for no promotion

However as you now have different roles he ceases to be a direct comparator in equal pay legislation terms I'd say. So focus on the second pay rise instead

Why would it be a legal issue? What law are you thinking it falls under?

Sex discrimination.

OP go to HR, this is not on.

I think it is potentially sexual discrimination. Women commonly get paid about 20% less than their male peers.

I would definitely be asking my manager: for a valid rationale why my salary is less than a man’s who is less senior and who was judged less capable in a direct comparison with me in interview recently.

Quite right! You’ll also notice that he had no issues with potentially being labelled a trouble maker when he asked for more money having lost out on a promotion. At least you have a legitimate reason to be paid more! The previous poster’s tripe is exactly why women are more reluctant than men to ask for pay rises, which is one of the factors that contributes to the gender pay gap.

Don’t let this lie. In my experience (both personal and as a union rep) discrimination is rarely open and obvious. It is this sort of subtle, murky situation that is much more common.

Asking their rationale is a good first step. What I’ve done in circumstances of potential discrimination is given my employee a chance to rectify the situation. Both times, I wrote letter outlining my disappointment in the situation, clarifying what I would like out of it and why it would be both fair and in the company’s interests, and subtly hinted at the fact that their behaviour could be perceived as discriminatory.

Eg ‘I was disappointed/troubled to hear that X has been given a pay rise of ££ more than me, given he did not achieve a promotion. In light of my increased responsibilities and work load as __I would expect a similar pay rise to… In a modern workplace, I am sure we’re all aware of the well-documented gender pay gap and want to work together towards gender pay equity…’

Given it's niche what are the opportunities like elsewhere?

I was in a niche role and saw others getting pay uplifts around me. There were always 'reasons' why I didn't get more. Basically they thought the niche nature of my role had me trapped.

A couple of years ago I got offered what was essentially the same role in another company for 50% more salary plus much better benefits.

My original company was most shocked when I handed in my notice!

IME employers are shortsighted and pay as little as possible even if it damages their long term stability.

He asked for and got more salary. Do the same. You need to present your case as to why you are worth more, and should be paid more. It's up to you, and also how far you're willing to go- would you resign if you're not paid your worth? Because if not, and they know that, then you're at an impasse. Men historically do get paid more, because they ask for it, expect it, request it. Do the same

I disagree that it's fair enough that he was paid more on entry. Employers should be open about what they pay, which should be according to defined pay scales rather than rewarding squeaky wheels. This almost always rewards men with an inflated sense of their worth.

You also say that they've not bothered to move you to the new pay band. That needs fixing straight away, and backdating to the date of promotion. Would this fix the anomaly regarding pay?

It sounds like you're in a niche role. Do you know if other employers pay more and would you find a better paid role with comparable/improved benefits and conditions elsewhere, which would be another incentive for your employer to increase your pay.

Good luck. Twenty years ago, this was me. My job advertised but for 20% more that I was being paid. I applied for the new job and was told that I already had it - the money was different because I was hired in a buyer's market and we were now in a seller's market.
Given recruitment fees, the time required for interviews, the number of candidates who think they can 'fake it 'til they make it', it is a foolish approach. It will sadly, always be with us because there are enough senior managers (male and female) who can see no farther than the end of their nose.

The issue is, why was he on more pay when you were both doing the same job previously. That fact has lead to this situation. Because of this you may well have a case due to sexual discrimination. You need to speak to an employment lawyer.

It doesn’t make sense but sadly this isn’t illegal and ultimately companies can do what they like in terms of remuneration, it just so happens most employees don’t find out what one another earns.

It is illegal if the decision to pay him more was made on the grounds of sex or race, which is why it’s important the OP asks for a written justification of the difference in pay. It’s not about skill or experience given the OP has been promoted over him, so what is it about? Giving someone compensatory pay rise is ridiculous especially if they’re paying him more than the person who actually got the job, so I’d be inferring discrimination was at play and letting them explain how that wasn’t the case.

sounds like came in on higher pay than you then when he’s got % increase he’s overtaken you

if that’s the case as shit as it is it’s just one of those things no discrimination

It honestly isn’t really that difficult to prove IF the company don’t have robust justification to prove why they’ve taken decisions which should all be documented and contemporaneous. Which most companies don’t, because they have the thought process of a lot of people on this thread.

It really depends on when he started getting paid more than you.
So if for example when he started he negotiated a higher salary than you (due to experience or whatever) then he started out in this job on more than you. If he was awarded the exact same percentage increases etc then he'd still be paid more than you as the promotion didn't come with a pay rise. Your boss did seem to say that he started with a higher salary?

i would be focusing on the fact they actually said they gave him a higher pay rise to compensate for the lack of promotion. That seems very odd.

In any case, no you don't need to earn more than people who report to you. And also it is often the case that external hires earn more than people who have stayed with the company longer. If you don't like it ... look elsewhere ! There are other benefits sometimes for long service for example where I work you get enhanced sick pay and more holidays.

The burden of proof does lie with OP, but she only has to demonstrate an 'inference' of discrimination from the facts.

Which is why they need to justify their decisions here. Why, when they had the same role, was it justified that he was paid x%/x amount more? And then why was he given a pay increase higher than everyone (?) else, yet was deemed not quite good enough to be worthy of promotion? And then, why was OP's pay rise fucked about with, and still she was not equally financially rewarded for being good enough to be worthy of promotion?

It's not difficult to draw 'inference' from the above facts, but whether she has a case will depend on the employer's justifications. The only wrong answer in this situation is to 'suck it up'. Ask the questions, get the responses, possibly question the validity of those responses, but only then do you consider letting it go.

I had something similar, Op. My line manager didn't really care until I told her that I was going to apply for one of the higher banded external jobs being advertised. I was serious too. My job was re-evaluated and I received more money.