PAY DISCRIMINATION
EOC issues guidelines for equal pay reviews
The Equal Opportunities Commission has launched an equal pay review model to help employers comply with the equal pay law.
The five-step model recommends that data should be collected for all elements of the reward package. This includes basic pay, performance-related pay and all benefits such as pensions, sick pay, company cars and medical insurance. Employers should ensure the complete reward package is the same for men and women doing equal work.
"While employers are not required by statute to carry out an equal pay review, only an equal pay review can ensure that an organisation is providing equal pay," says the Equal Opportunities Commission.
| EOC equal pay model |
| The model includes a brief description of each step and how to carry it out. More detailed guidance on the various aspects of a review will be set out in supporting guidance notes. |
| Step 1: Decide the scope of the review and identify the information required. |
| Step 2: Determine where men and women are doing equal work. |
| Step 3: Collect pay data to identify equal pay gaps. |
| Step 4: Establish the causes of any significant pay gaps and assess the reasons for these. |
| Step 5: Develop an equal pay action plan. |
| Background |
The EOC wants 50% of large employers with more than 500 workers to have conducted a review by the end of 2003, and 25% of other employers to have done so by December 2005. |
The EOC launches "Valuing Women", a three-year campaign to reduce the gender pay gap (October 1999). The Equal Pay Task Force was set up as part of the campaign and brought together business leaders, trade union officials, civil servants and academics. Its report, Just Pay, recommends that employers should carry out mandatory pay reviews, and that the EOC should develop a pay review model to help them do so. |
EOC launches an equal pay forum in partnership with Opportunity Now to gives employers the opportunity to share best practice on equal pay (December 2001). The forum, which now has more than 130 members, met for the first time on 26 June 2002. Employers who are interested in joining the Equal Pay Forum should contact Olivia Williams at Opportunity Now, email: olivia.williams@bitc.org.uk. |
Final words
"This kit is an essential tool for employers who take equality seriously . . . I hope that carrying out an equal pay review will soon be seen as good business practice for every employer. The sooner that happens, the sooner women will be able to feel confident that their contribution at work is valued." - Barbara Roche, women's minister.
"The gap between women's and men's pay still stands at 18%, and progress towards closing that gap is incredibly slow. I hope that the availability of this kit will kick-start a real increase in the pace of change. We know that the vast majority of employers don't deliberately discriminate against women. EOC research found that 93% were confident they paid fairly, but few had checked their pay system for bias.
Pay systems are complex and it is all too easy for discrimination to creep in, as recent EOC cases demonstrate. This kit will make it easier for employers to carry out a pay review. This is the only way they can be sure their pay system is fair." - Julie Mellor, chair of the Equal Opportunities Commission.
"Conducting an initial pay audit will help determine the existence and extent of equal pay problems within an organisation. But once the current pay system has been reviewed, it is crucial that periodic checks are made to ensure that sex bias hasn't crept back in. It's vital that staff administering pay are fully trained in identifying sex discrimination in pay systems. Employees who deal with day-to-day processes are best placed to monitor pay practices on an ongoing basis, and ensure that unjustifiable disparities don't occur." - Gary Bowker, employment Law consultant, Mercer Human Resource Consulting.
Want to know more?
Visit the EOC web site if you want to download a copy of the EOC Equal Pay Review Model, free of charge in PDF format . . .
For more information, call the EOC helpline, tel: 0845 601 5901.
To read a copy of the EOC press release, click here.
Posted 8 July 2002