More than 10,000 former and current Lloyds Banking Group employees are to receive hundreds of pounds in back pay after the bank denied employees a pay rise.
Employees are being awarded the payments after a long-running dispute over contracts that staff were asked to sign following the merger of Lloyds TSB and Halifax Bank of Scotland (HBOS) to secure future pay rises.
Some 7,000 employees refused to sign the new contracts of employment because they were concerned about a number of problems in the clauses.
Lloyds later withheld annual pay increases in 2010 and then gave non-signers half the salary increase they were entitled to in 2011.
The payments were thought to average around £500 each.
The contracts did not specify the hours that staff would work and it had an adverse impact on women, particularly those working part-time.
Women make up 65% of Lloyds’ workforce and 78% did not sign.
The organisation reviewed its pay policy in the light of a decision a year ago by an employment tribunal in a case bought by three female staff.
A spokesperson for Lloyds Banking Group said: “While the tribunal decision applied only to three employees, we have decided to review the pay of all current staff who did not originally sign our harmonised terms and conditions in 2010.
“Where this shows an individual would have been entitled to a pay increase in 2011 and 2012, we will make the appropriate adjustment to pay and pensionable pay.”