The Equality Act does not mandate such evaluations, but they are a common means of satisfying the requirements of the Act. Job Evaluation Schemes are a method of internally accounting for and justifying why a position occupies a certain pay grade. It is advisable to have a grasp of the relative value of positions operated. They are also required to report on the proportion of male and female employees occupying lower to upper pay bands.įailure to comply with the reporting requirements may result in sanction by the Equality and Human Rights Commission. The annual “snapshot” period for gathering data is 31 March for the public sector, and 5 April for the private sector.ĮMPLOYMENT LAW: SUBSCRIBE TO RECEIVE OUR FREE UPDATES DIRECTLY INTO YOUR INBOX Types of data to be publishedĮntities captured by the regulations must report on differences between the mean and median hourly wage gap and bonuses between male and female employees. There are some differences between the regulations for private and public entities. The regulations apply to private and public employers who hold 250 or more employees, and require such employers to publish data on gender pay gaps as they apply to the individuals covered by the Equality Act. In 2017, two regulatory frameworks were enacted pursuant to the Equality Act, with one applying to the public sector and the other private. Gender pay gap reporting and large entities Although less frequent, there are occasions where a man might be paid less favourably. The Equality Act applies to both men and women. (3) self-employed individuals performing contractual obligations personally. The provisions of the Equality Act apply to: What individuals do the equal pay provisions apply to? In any event, where the handling of personal data is concerned, the core principles of the Data Protection Act 1998 must be adhered to, including fair and unlawful processing, accuracy and secure handling. This is subject to limitations however, and in most cases an order has to be granted by the employment tribunal for information disclosure. The Equality Act permits a claimant to seek information on pay packages to fellow employees, even where confidentiality clauses exist in their employment contracts. If there is no comparator in the same place of employment, it is possible to base a discrimination claim on a hypothetical comparator, if there is reason to believe someone of the opposite sex would receive better pay. A higher volume of workload alone cannot serve as justification. Common examples are where strength and physical labour are required. It is possible for an employer to justify differences in pay or other benefits, if they can show there are practical differences or factors warranting higher or lower levels of importance being attached to that position. Work of equal value – neither of the above two categories apply, but the position is of an overall equal value in terms of skills, training and level of decision making.ĮMPLOYMENT LAW: SUBSCRIBE TO RECEIVE OUR FREE UPDATES DIRECTLY INTO YOUR INBOX Justification for differences.These schemes are discussed further below. Equivalence as determined by a Fair Job Evaluation Scheme – the Fair Evaluation Scheme is a means of determining the relative value of a position, taking into account the skills, training and level of decision making required.Like work – refers to work that is the same or similar to that performed by someone of the opposite sex in either the same place of employment or one operating under the same terms and conditions.Definition of equal workįor the purpose of the Equality Act, “equal work” is determined by three methods: The term equal pay goes beyond basic remuneration, and covers bonuses, overtime, redundancy pay, pension schemes, company benefits and sick pay. It is highly advisable to conduct ongoing gender-neutral evaluation of jobs and pay structure in order to meet the requirements of the Equality Act. There are a number of statutory requirements to be satisfied in order to successfully defend claims for unjustifiable differences in pay for certain roles. In the UK, equal pay between men and women for equal work is provided for by the Equality Act 2010.
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