Mind the (pay) gap!

By Taylors Solicitors

29 May 2014

Whilst it is 44 years this week since the Equal Pay Act came into force, there is still evidence that the gender wage gap exists; in fact, a recent study by a national newspaper indicates that the gender pay gap remains stubborn and that male and female managers will not be paid the same until 2067.

By Ashna Chada, Employment Solicitor, Taylors

So what are the statistics?

Despite being over four decades since the Equal Pay Act came into force, men still earn more than women in nearly 90% of job categories and recent reports have found that women’s pay in the workplace is again falling behind by as much as 20% when compared to their male counterparts.

According to the research:-

- female health professionals have the biggest pay gap at 31%, which works out at an average of £16,000 a year;

- women working in culture, media and sport experience the next biggest pay gap at 27.5%, which equates to an average of £10,000 a year, and;

- women working in manufacturing occupations earn nearly some 24% less than men.

It's interesting to note that the three major occupations where women do earn more than men – transport drivers, electricians and agricultural workers – are all male-dominated,with fewer than 50,000 women employed in these sectors, compared to 1.5 million men.

An employer's legal position

The Equality Act 2010 outlaws pay discrimination and implies an “equality clause” into every contract of employment and stipulates that a woman (or man) is contractually entitled to equal pay with every man (or woman) in the same employment who is doing like work, work rated as equivalent, or work of equal value, unless the difference in pay is genuinely explained by something other than sex.

If you have female employees who believe they are affected by these issues, you may find that they are unhappy to sit out the 53-year wait and may subsequently raise concerns with you. It is therefore imperative that, as an employer, you anticipate this and check that you are in a strong position to avoid any potential equal pay claims. So here are our recommended action points...

1. Listen to the Law

The Equality Act requires that men and women receive equal pay for equal work. Jobs do not have to be identical for equal pay to be required, but substantially equal in terms of skill, effort and job responsibility, and performed under similar working conditions. The term pay refers not just to salary but also overtime, bonuses, vacation and holiday pay, stock options, life insurance and all other benefits and compensation of any kind paid to employees.

2. Ensure appropriate training is in place for Managers

Employers need to make sure that all supervisors and managers receive proper training on how to avoid wage discrimination.

3 Audit pay practices

Employers should frequently review their pay practices to make sure that they are not engaging in discrimination, for example, because of sex, race, national origin or any other protected class. Any differences that do exist should be based on legitimate and non-discriminatory factors and supported by written documentation.

And watch out for new legislation expected to be introduced in October 2014 on mandatory equal pay audits. Under the proposed new legislation, an Employment Tribunal would be able to order employers that have breached the provisions of equal pay legislation to carry out mandatory equal pay audits.

4. Appraisals

Ensure that appraisals are well-documented so employees are aware of their performance and that you have evidence to support this.

5. Base decisions on skill and performance

Managers need to make sure that all employment decisions regarding promotions, salary increases and bonuses are based on legitimate and non-discriminatory factors such as skill, merit and performance.

6. EOC Code of Practice Familiarise yourself with the Equal Opportunities Commission Code of Practice on Equal Pay (for further information, see www.eoc.org.uk). While the Code is not legally binding, a Tribunal may (and more often than not, do) take into account an employer’s failure to act on its provisions when considering a Tribunal Claim

Latest news

1

fulfilmentcrowd reports record-breaking performance LeeThompsonfulfilmentcrowd

fulfilmentcrowd reports record-breaking performance

20 Dec 2024

2

Record year for Grant Thornton Northern deals team The team

Record year for Grant Thornton Northern deals team

20 Dec 2024

3

New partner among family team hires as Brabners strengthens personal offer Cara Nuttall Chris Fairhurst And Hannah Saxe

New partner among family team hires as Brabners strengthens personal offer

20 Dec 2024

4

Amazing Accrington bring in almost £400k in funding to Hyndburn Clayton Boxing Club press.jpg.jpg

Amazing Accrington bring in almost £400k in funding to Hyndburn

19 Dec 2024

5

BAE Systems solar powered aircraft achieves new stratospheric success The flight

BAE Systems solar powered aircraft achieves new stratospheric success

19 Dec 2024

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

Preston Tech Connection - January Meet-Up
Nov Preston Tech Connection event banner-4.png.png
LBV Hub Networking
15 Jan 2025 - 15 Jan 2025

Preston Tech Connection - January Meet-Up

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

The Business Network Central & East Lancashire
LBV Hub Networking
16 Jan 2025 - 16 Jan 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

R.I.S.E. and Shine
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
16 Jan 2025 - 16 Jan 2025

R.I.S.E. and Shine

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

08:45 - 11:00

LBV120 Magazine Launch Event
DSC9389
Networking
17 Jan 2025

LBV120 Magazine Launch Event

Lancastrian Suite, Town Hall, Chorley, PR7 1DP

08:30 - 10:30

Red Rose Awards 2025
Red Rose Awards 2025
Awards
13 Mar 2025

Red Rose Awards 2025

Winter Gardens Blackpool

18:00 - 11:59

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV118 Online Graphic
Subscribe now

Weekly news bulletin