I work for a large company that has just reviewed my salary after 2 years only to give me a 2% increase. I know for a fact that the person sat to my right is on about 4k a year more than me, will a similar service length (not been here as long as me) and much less knowledge and experience of our industry. As I came in from a different role where my salary was lower they never incresed it to bring it in line with the new role. I was expecting this years salary review to take into account my job change but they haven't. Now I`m working in a department where I do most of the more specialised work because of my experience yet I receive around 4k less than my colleague for no real reason.

I need to know if I can legally do anything to challenge my salary given the lack of equality in my case. Do I have a leg to stand on or shall I just make an example of my employer and leave?

You can try to challenge your salary, but remember that you are easily replacable in today's tough economic times.

As far as the person making 4K, he just may be a better negotiator when it comes to salary.

Was there any set promise made to you with the new position change? If not, you don't have any legal recourse.

This is legal unless you are being paid less due to race, religion, etc. And good luck trying to prove it.

There are no laws, unless you are under a union contract, that state that people doing similar jobs be paid similarly other than discrimination laws previously mentioned.

And how do you know this person is making more? Most people do not reveal their salaries for just this reason.

The other person may simply be more valuable to the company. Unless (as Scott said) a specific class of people (by nationality, religion, something else) makes more money than another class I see no legal action.

I managed a law firm - some employees with shorter employment made more than others who had been there longer simply because they had better skills or were more valuable. Oftentimes one employee wanted a higher starting salary and that would continue as raises were given.