Looking at your grading structures and systems.Creating clear and transparent job descriptions and titles.The core elements of a fair pay system include: pay systems should be as simple as possible and therefore easier to manage and understand.everyone should understand the pay and benefits system. Effective action plans detail how you will fix the issues with clear timescales and reasons why this is the soonest it can be done.Īchieving and maintaining equal pay requires a fair, transparent and up-to-date pay system. Take action if you find a problemĬreate an action plan to address any issues around equal pay. Our guide for large organisations with more than 50 employees shows how to carry out an equal pay audit in five steps. Our guide for small organisations with 50 or fewer employees shows how to carry out an equal pay review in three steps. indefinite or lengthy pay protection policiesĪn audit is the easiest and most effective way of checking if you have a problem with equal pay.market-based pay systems not underpinned by job evaluation.managerial discretion over starting salaries.overlapping pay scales and broad-banded structures.more than one grading and pay system within an organisation.different non-basic pay terms and conditions for different groups of employees (for example bonuses or overtime).non-payment of contractual bonuses during maternity leave.lack of transparency in your pay and grading system.You might assume that you are providing equal pay, however many common practices can lead to risks with equal pay, such as: Learn more about material factors and equal pay claims not be tainted by direct or indirect sex discrimination. explain the pay difference with ‘particularity’ - this means the employer must be able to show how each factor was assessed and how it applied in the woman’s specific case.be a genuine reason for the difference in pay.If a woman proves that she is doing equal work to a man, there is a legal presumption that any difference in their pay is because of their sex, unless the employer can show that a ‘material factor’ explains the difference. Learn more about equal work and see examples Justifying pay differences work of equal value is not similar and has not been rated as equivalent, but is of equal value in terms of demands such as effort, skill and decision-making.work rated as equivalent has been rated under a valid job evaluation scheme as being of equal value in terms of how demanding it is.It involves similar tasks which require similar knowledge and skills, and any differences in the work are not of practical importance. like work is the same or broadly similar.It does not matter how long they have been employed or whether they have a full time, part time, fixed term, zero hours or casual contract. workers who agree to do work personally.employees with a verbal or written contract of employment.The right to equal pay applies to many different work arrangements, including: fringe benefits such as travel allowances.You are at risk of an expensive employment tribunal case and reputational damage if you do not provide equal pay.Įqual pay applies to all contractual terms, not just pay. It is the law and employers must follow it. As set out in the Equality Act 2010, men and women in the same employment performing equal work must receive equal pay, unless any difference in pay can be justified.
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