The lawyers acting for the 170 women who brought the original case against Birmingham City Council say this marks "an historic decision".
"This is a great day for equality and for all those women massively underpaid over many years within public and private organisations.
"Birmingham Council should now do the decent thing and settle the claims. They saved money by underpaying ex-workers for so many years, and so should now stop wasting taxpayers’ money fighting court cases they cannot win."
For more on this story see the ITV National News website.
More top news
More of the Midlands has been further affected by floods as heavy rain falls on already saturated ground, and more is forecast to come.
Parts of Birmingham have been hit by flash flooding after hours of non-stop torrential rain - sparking chaos on the roads and rail network.
A thug who allowed his dog to maul a helpless cat to death has been jailed for 18 weeks and banned from keeping animals for life.