Equal pay guidance issued to SMEs
6th September 2010
As the Equality Act comes into force this October, the Equality and Human Rights Commission and the British Chambers of Commerce have published joint guidance to help small and medium sized businesses ensure their pay systems comply with equal pay legislation.
It has been forty years since the Equal Pay Act (1970), yet women who work full time are still paid 16.4% less per hour than men (on average). In the public sector the pay gap is 14.6% whereas in the private sector the divide is much greater at 21.6%.
The quick and easy Guide is intended to enable a small organisation to examine its payroll systems in no more than four hours.
Pearson Hinchliffe Commercial Law recommend that if any pay differences between men and women doing equal work that cannot be justified are identified, they should be addressed immediately, and a record kept of the causes of pay differences, whether they are considered justified, and why.
The exercise should also be repeated every few years to ensure continued compliance.
The Quick-start guide to providing equal pay can be viewed here
If you require any assistance with using the EHRC Guide, or further advice on complying with the legislation on equal pay, please contact our Employment Law department using the details provided below.