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Companies advised to assess equal pay policies

Companies are being advised to check they comply with rules about equal pay – or risk being named, shamed and fined.

Employment law expert James Humphery from leading law firm Trethowans said Employment Tribunals are set to have the power to order companies to conduct equal pay audits – or risk large fines.

The changes are part of The Enterprise and Regulatory Reform Act and James said that equal pay audits will be ordered where companies have breached the equal pay provisions under the Equality Act.

He said that most companies which are found to have breached the Equality Act will have to carry out detailed pay audits, have them approved by the Employment Tribunal then publish them on their websites - and leave them there for 3 years. There’ll be fines of up to £5,000 for non-compliance.

“Equal pay has been in the spotlight recently and the introduction of this new power for Employment Tribunals is a timely reminder for companies to ensure they comply with the law,’’ said James.

’“Equal pay claims are always complicated, messy and time consuming so being forced to undertake and publish an audit rubs salt into an open wound.”

He said this kind of audit examines the pay of groups of workers doing equal pay with the aim of identifying the reasons for pay gaps and closing any gaps which can’t be objectively justified.

To find out more about Trethowans and its employment services contact the Salisbury office on 01722 412512 or Southampton office on 023 8032 1000

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