This should raise alarm bells for businesses as a survey, by Croner, reveals that 70% of businesses have not carried out an equal pay review, meaning they are unsure if they have a gender pay gap. This leaves them wide open to allegations of unequal pay.
Businesses who currently breach the equal pay act are liable for compensation of up to two year''s back pay. The new legislation removes this provision, meaning businesses could be paying out a lot more.
There could also be an increase in the number of unequal pay claims as the six-month period after employment has ended during which a claim must be brought has been extended in some circumstances.
In the UK, women''s earnings are currently 19% lower than men''s. An Equal Pay Questionnaire allows individuals who suspect they are not receiving equal pay to request details of their co-workers'' salary, which calls for organisations to clarify and strengthen their pay structure and review procedures, or face paying the price at tribunal.
New equal pay legislation could mean bigger pay outs for businesses
Changes to the Equal Pay Act from this Saturday mean that businesses could be paying out even more in compensation claims.