A new survey from the Chartered Management Institute has revealed that women in management positions in Wales earn approximately 13% less than males in the same position. This means that female managers are essentially working an hour a day for free.
Equal pay legislation has been around for many years – here in the UK we’ve had laws governing it for more than forty – but the figures revealed by the CMI show that we still have a problem in this country, despite it being the 21st Century. Simply put, one sex should not receive more or less than the other for performing the same or a similar role.
Changes in Equal Pay Legislation
Last month, David Cameron reaffirmed his intention to address the issue, reminding companies of the change in legislation due in 2016. The change will force companies with more than 250 staff to disclose the average pay of their employees, both male and female. Cameron believes the new legislation will “cast sunlight on the discrepancies and create the pressure we need for change, driving women’s wages up”.
Whilst the reporting requirements for this are yet to be announced, the consultation addressing proposals ends this Saturday.
As well as this change in legislation, last year an amendment was made to the Equality Act 2010, which means that any employer that now loses an equal pay case will be obliged, subject to certain restrictions, to undertake an equal pay audit (EPA) of its employees. An EPA consists of a comparison of those employees undertaking equal work with the intention of identifying any inequalities that may exist and the reasons for these inequalities. The results of any EPAs taking place would be made public, with the end goal being to correct said inequalities.
These changes will definitely have a significant impact on how equal pay claims are run within the Employment Tribunal in future, particularly with the possible consequences of the results of an audit being made public.
What Can Businesses Do to Protect Themselves from an EPA?
To protect themselves from an enforced EPA, businesses can undertake a voluntary EPA to uncover and rectify any inequalities before a claim is made against them. The results of a voluntary EPA would not be made public, and would be valid for three years. Should a claim be made within the Employment Tribunal within these three years however, the results would then have to be disclosed.
If you would like to discuss the above in more detail or are considering undertaking a voluntary audit get in touch and my team and I will be able to assist you.
