Government launches further consultation on equal pay audits

The Government has published a second consultation on equal pay audits, following its consultation on modern workplaces in 2011. 

The Government response to the modern workplaces consultation confirmed its commitment to proceeding with proposals to require employment tribunals to order an employer to conduct an equal pay audit, where it has discriminated on the ground of sex in contractual or non-contractual pay. 

This second consultation, which closes on 18 July 2013, seeks views on the further detail of equal pay audits and the likely contents of impending legislation in relation to equal pay audits. The Government hopes that the legislation will come into force in 2014. 

The legislative framework for regulations relating to equal pay audits is contained in the Enterprise and Regulatory Reform Act 2013, which includes the power to make regulations requiring employment tribunals to order an equal pay audit where the employer has breached the equal pay provisions under the Equality Act 2010. 

Under the legislation, employment tribunals will have the power to impose, repeatedly if necessary, a civil penalty of up to £5,000 for non-compliance with an equal pay order. Micro (fewer than 10 employees) and start-up businesses will initially be exempt from the proposals. 

Also

Good practice guide on equal pay This section of the XpertHR good practice manual discusses the business case for equal pay. It identifies the causes of the gender pay gap, explains how employers can identify and remedy pay discrimination in their organisation, and sets out the steps that employers can take to prevent pay discrimination from arising. 

Equal pay policy Use this model policy to set out your organisation's commitment to equal pay between male and female workers.