We focus this month on equal pay, and also continue with our regular analysis of the Equality Bill as it progresses through Parliament.
Equal pay impact assessments
Our first equal pay feature looks at the benefits for organisations in carrying out an impact assessment when proposing new pay and grading structures. Equal pay adviser Sue Hastings argues that all organisations, not just those in the public sector, could usefully carry out an equality impact assessment on their pay structures in order to minimise the risk of equal pay claims. She points out that many equal pay cases arise in relation to pay structures put in place many years before the claim is made. She explains how to carry out an equal pay impact assessment, and gives examples of action to be taken to address potential pay inequalities.
Equal pay in local government
Jennifer Eady QC and Kara Loraine give an overview of recent case law and its impact on equal pay in local government. This has been a legal minefield with complex, technical points being litigated and the law developing rapidly. However, as the authors point out, the progress toward equal pay in the sector has been slow. The cases discussed cover three particular problem areas: the role of trade unions; piggyback claims brought by men; and interpretation of “same employment”, which brings difficulties in local government due to the high level of segregation of the workforce. It is argued that litigation in this area has the potential to make a substantial difference to gender inequality, but the authors note that the costs involved – in employment relations and service provision – may overshadow the progress made.
Equal pay audits
Our case study looks at the benefits of equal pay audits at the Learning and Skills Council (LSC). The LSC is committed to conducting an equal pay audit after each annual pay review. It analyses pay gaps not only by gender but also by race, disability, age and full-time/part-time status. It investigates any discrepancy of more than four percentage points (lower than the EHRC’s recommended five per cent). It maintains its pay equity by ensuring that managers are trained to look at broader equality issues when appointing someone or reviewing pay, referring to comparable salary levels. It is also made clear that salary reviews should not take place outside of the annual exercise, to avoid introducing inconsistency and pay inequality.
EHRC on reporting gender pay gaps
We outline the proposals from the Equality and Human Rights Commission for voluntary measures that organisations may use to publish information on their pay levels by gender. It puts forward three options. The EHRC hopes to encourage employers with 250 or more employees to voluntarily make public information on their gender pay gaps. The three options proposed are:
- the single figure difference between men’s and women’s median hourly earnings;
- the difference between their average basic pay and total average earnings by grade and job type; and
- the difference between men’s and women’s average starting salaries.
EHRC legal strategy
We set out the EHRC’s proposed legal strategy for 2010–12. Unlike its previous strategy, which highlighted specific issues, the document now out for consultation is in more general terms. Its proposed objectives for the period include to: “reinforce, expand and strengthen equality rights for all of the protected grounds under equality legislation; protect and promote human rights; secure effective compliance with statutory equality duties; and promote good relations and combat prejudice”. It also proposes that the Commission will take on at least 100 legal cases a year that reflect those objectives.
Equality Bill’s progress
We report on the amendments made to the Bill at the House of Lords Committee Stage, which was completed on 9 February making it more likely that the Bill will receive Royal Assent before a General Election is announced. The key changes covered include amendments to clauses on enquiries about disability and health, cost of reasonable adjustments, harassment, and equal pay.
Subscribers to EOR Online can read the full text of all the articles mentioned above as well as our usual news, diary and case reports in Issue 198.
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