The issue of sex equality and pay in the workplace has been a major issue for decades. In fact, the UK has had laws governing this for nearly half a century; but with new regulations set to come into force on the 1st October 2014, could there be a huge step in the right direction?
What Are These New Regulations?
For years many have been petitioning for equal pay, in other words for male and female staff to get paid the same for doing the same job.
The changes that will now be in place are an amendment to the Equality Act 2010. These state that if an employer loses a case of equal pay they are legally obligated to undertake an equal pay audit (EPA) of their entire company.
An audit will compare workers in similar job roles and check for any inequalities, plus the reason behind these, if any are found; with the outcome of correcting these errors and standardising pay. A failure to do an EPA could result in multiple fines up to the cost of £5,000.
What Does This Mean For Businesses?
Of course for this to work the results of an EPA must be transparent and publically available. This means competitors, staff and the general public will know how much you pay your staff. Initially this may not seem like such a bad thing, but it may cause trouble in the long run.
Staff may see the results and decide to make a further claim, or ask for a raise. It may also lead to staff being poached by competitors who can offer a higher wage.
If you are a business owner, who wants to protect their company with ongoing risk management, then a voluntary EPA may be a good idea. This way any inequalities can be rectified before a claim is made against you.
If you volunteer for an EPA you would not have to publish the results, and they are valid for 3 years. This is a great way to resolve any possible pay related issues, while still remaining private. You would of course have to present the results of the audit if a claim is brought against you and the company.
So what do you think about this new legislation? It will certainly change how equal pay claims are made and judged by the Employment Tribunal in the future. Will you be volunteering for an EPA ASAP?
