Question:? Someone at my mate’s business has started asking questions about some of the shortcuts they take in the business. Can he be fi...
Employment Law ChangesNovember 9, 2020
Changes to the?Equal Pay Act 1972?will?apply from?7 November 2020?with a view?to?reducing, if not closing, the Gender Pay Gap.?
Studies have found that?women in occupations?traditionally?performed by women, that is?jobs?where more than?60% of the workforce is female?–?such as?Teacher’s Aides, or Nursing,–?tend to be lower-paid than?men?doing the same job?or a?different?job?requiring?the same skill and effort.?On average, a woman earns 9.4%?less than a man, though in some industries the difference may be as much as 30% percent or more.?This is the gender pay gap.?
The?changes aim?to improve the process for employees to raise, progress and resolve pay equity claims,?in order?to address?where women have been paid less than men doing work of equal value in different workplaces or industries. It also allows unions to bargain for higher pay for women at an Industry level.?
Workers will be more engaged and productive if they know that they are being paid fairly, so it makes sense to close the Gender Pay Gap in every business. Consider the below to help identify areas where there may be a pay equity or equal pay gap:
Assess the Gap
To close the gap, you firstly need to establish where it lies and how wide it is. Compare differences in pay between men and women across the business by analysing pay roll data and employee records:
You can also compare salaries and progression for men and women, and for full-time and part-time staff.
If the gap is in respect of pay equity, there is a set process to follow to assess if a claim is arguable, and if so, what is an equitable pay rate.
Make A Plan
Once you have identified and assessed the gap, based on your organisation’s circumstances make a plan to close the gender gap. You should set clear, measurable objectives and consider the following when drafting your plan:
Implement the Plan
Put your plan in place and monitor it closely through periodic analysis of updated payroll data and employee records and regular reporting and feedback.
Review the Plan
Review the plan regularly to see if it is tracking successfully and to see whether the objectives and means of achieving them need to be adjusted to reflect any changes to the business.
For more information on the amendments to the Equal Pay Act 1972 and what to do if you receive a pay equity claim, see our blog or call Employsure for free, initial advice on 0800 568 012