18 September 2024 marks Equal Pay Day, a day which represents the longstanding efforts towards the achievement of equal pay. This day shows the commitment made to prevent all forms of discrimination.
What measures should employers have in place?
It is a legal right, under the Equality Act 2010, that employees (men and women) receive equal pay where they are conducting the same or similar work, and where rated the same in respect of the company job evaluation programme.
The Equality Act 2010 states that equal work is:
- Like work,
- Work related as equivalent; or
- Work of equal value.
Equal pay applies regardless of the length of service, age, or working pattern e.g. full time, part time.
The contractual terms that apply with equal pay can include:
- Basic pay
- Overtime pay
- Benefits provided by the company, examples include enhanced sick pay and family friendly pay, holiday entitlement, share options, pension
How HR processes can support equal pay
To provide equal treatment throughout the company, HR practices and procedures to ensure ‘pay equality’ and equal opportunities should be incorporated, including:
Remuneration: pay awards, job evaluations and salary bandings, benefits programme, performance bonus, pensions.
Development and career plans: promotions, training opportunities.
Recruitment and selection: equal pay to job offers and the benefits provided.
It is vital that companies are reviewing their pay and rewards strategies to ensure that processes and practices in connection with equal pay are not discriminatory.
Line managers should be trained, to ensure that they are applying fair pay processes to their people.
An equal pay claim at an employment tribunal can not only be time consuming for the business, it can also be costly for a company where the employees claim is successful.
For more information on equal pay practices reach out to Nockolds HR on 0345 646 0406 or fill out our online enquiry form.