Survey shows employers not taking equal pay seriously

With the Government starting a new consultation on reducing the time taken to resolve equal pay tribunals, a new survey has shown that the majority of UK organisations are not taking the recommended steps to identify and rectify any gender pay gap in their organisation.

Seventy percent of the HR professionals surveyed by Croner, one of the UK’s leading providers of business information, advice and support, admitted their firm had not carried out an equal pay review. A further fifteen percent of respondents to the survey, which was carried out on Croner’s www.humanresources-centre.net, were unsure if their organisation had carried out an equal pay review, with only fifteen percent saying they have.

Women’s minister Jacqui Smith announced on Monday that a new consultation process was to be put in place, with important legislative changes around equal pay tribunals scheduled for later this year.

Under the planned legislation, employers falling foul of equal pay legislation could face prompt prosecution unless they can justify any discrepancies in pay.

An Equal Pay Questionnaire was introduced by the Government in April 2003 to enable employees to challenge their employer to determine whether they are being paid less than a colleague for the same job.

The Questionnaire allows individuals who suspect they are not receiving equal pay to request details of their co-workers’ salaries, and calls for organisations to clarify and strengthen their pay structure and review procedures.

The Equal Pay Act 1970 gave women the legal right to be paid the same as men, but figures show that average UK female earnings are currently nineteen percent lower than those of their male counterparts.

Richard Smith, employment law expert at Croner, which is part of Wolters Kluwer UK, says the company regularly receives calls to its business support helpline from employers needing advice about how to manage a complaint of
unequal pay from an employee.

He says: With employers facing so many equal opportunities issues, such as disability, age and sex, managing equal pay is often swept-under-the-carpet - but the consequences of doing so could be costly.

Our survey shows that an alarming majority of employers could be unaware if they have a gender pay gap, and that gender discrimination may therefore be going undetected.

An equal pay review is the best way to ensure a pay scheme is fair and legal. If a gender pay gap is discovered and cannot be rationalised by demonstrating equal recruitment procedures, promotional opportunities and pay scales for both men and women, then the employer could face allegations of unequal pay, possible fines, or even prosecution.

Traditional factors of discrimination in pay, occupational segregation and unequal impact on women’s family responsibilities are still seen as contributing to today’s gender pay gap.

Richard Smith continues: A number of legal provisions have been made so that family responsibilities do not impact on a woman - or man’s - career, such as maternity and paternity leave, flexible working and parental leave.
Employers should encourage staff to use these benefits to achieve a balance between work time and free time.

There is no reason in today’s society why a woman should be prevented or discouraged from doing any job, or should be paid less than a man.

Recognising and managing equal pay issues is vital to reducing the UK’s gender pay gap, and is the responsibility of every employer.

As well as reducing the risks of prosecution, it can be beneficial to the organisation as equality in the workforce can contribute to productivity, morale, motivation and staff retention.

Croner provides information, advice and support to employers to ensure they are compliant with current legislation regarding equal pay. Croner is advising employers to:

Treat men and women equally in their terms and conditions of employment when they are employed in like work, equivalent work and work of equal value

Demonstrate a material difference between positions of employment that is not gender-related

Treat part-time employees no less favourably than their full-time equivalents, unless this can be justified on objective grounds

Respond promptly and comprehensively to an equal pay questionnaire from an
employee.