Member Article

Private companies equally affected by pay problem

Private companies are unlikely to escape the equal pay controversy currently sweeping the public sector, a North East law firm has warned.

Organisations ranging from NHS Trusts to local authorities are facing thousands of claims from current and former female staff alleging that they have been paid less than male counterparts.

One council alone - Cumbria County Council - is facing a £50m equal pay claim from 3,000 female cooks, cleaners and care workers.

While most equal pay claims have been lodged in the public sector, employment experts at Ward Hadaway have warned that private companies could find themselves landed with similar claims, especially if they provide goods and services to public sector organisations.

Tim Smith, employment partner at Ward Hadaway, said: “Under the recent Equality White Paper, it appears that if an organisation wants to tender for a contract with the public sector, they’re going to have to be able to show that they’re taking steps to reduce wage inequality between the sexes. “The obvious way to do this is by carrying out an equal pay audit of their workforce. However, if this audit flags up serious anomalies between male and female pay, a company could leave itself open to equal pay claims from its employees.”

Under equal pay legislation, if a man and a woman do a similar job, they should be paid the same, all other factors being equal. They should also be paid the same if the jobs they do, while different, are of equal value to their employer.

Tim Smith said: “Equal pay is a very tricky area for employers to navigate through and the situation is likely to become even more difficult as time goes on. This is why getting good advice and planning out a strategy to deal with the issue is increasingly becoming a must for all employers, whatever sector they work in.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .

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