Here in the UK, the introduction of the Equal Pay Act 1970 was a huge step forward for ensuring men and women are paid the same amount for the same job(s).
So what do we mean when we talk about “equal pay”? In short, both men and women must be paid the same when they do the same type of job. This work is considered as either the same, similar, equivalent or of equal value by the law.
Equal pay claims
The number of claims associated with equal pay is increasing. In order to put in a claim there are some legal requirements that need to be taken into consideration.
Here at AvloHR, we are always happy to discuss specific claims with you to help you determine the best route forward. As always, just get in touch to find out more.
Pay structures and transparency
As an employer, there are a number of things you can do to minimise the onset of an equal pay claim. These range from implementing an equal pay policy and pay scales to checking that your job titles, descriptions and salaries are accurate and consistent.
One important point to note is that the inclusion of “pay secrecy clauses” in documentation such as contracts is unlawful, and so must be avoided.
Equal pay policy
Creating an equal pay policy is a simple and straightforward way of addressing this topic. This should be readily available for all employees to peruse at their leisure. It is advised that you seek legal advice when creating such a policy wherever possible. Our team are ready and waiting to assist!
Gender Pay Gap Reporting
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2016 applies to organisations with at least 250 employees each year.
You will have to publish this information for each year you have 250 or more employees on 5th April of the previous year.
An employee, for the purposes of the Regulations, includes:
- Employees (those with a contract of employment) including part time and zero hours employees
- Workers and agency workers (those with a contract to do work or provide services)
- Some self-employed people (where they have to personally perform the work)
There are six calculations which will require you to gather information for.
You should publish the information somewhere people can access, for example: your website. Such information will need to remain available for inspection for three years for comparison purposes. You will also need to place the information on the government website. More details of this will be available closer to the reporting date.
You also need to provide a statement which confirms that your calculations are accurate. This should be signed by an appropriate person within the business (usually the Chief Executive or a director). This can also be used as an opportunity to address why there is a gender pay gap and what your organisation intends to do about it.
ACAS also recommend that you communicate with employees regarding the data you are about to publish as well as provide an accompanying statement. Where there is a gender pay gap reported, you should identify and communicate the steps you are going to rectify to reduce/ eliminate the gap.
AvloHR are here to offer practical advice and support on equal pay as well as gender pay gap reporting. Don’t hesitate to get in touch to speak to one of our team.
