Equal Pay – What does it mean? the employment relations experts

Equal Pay Legislation - The Gender Pay Gap The difference in pay between men and women Determined by calculating women's overall average pay as a percentage of men’s Most common figures are for the full time average hourly earnings for the standard working week

the employment relations experts The Gender Pay Gap The gender pay gap in the UK - average full time hourly rate 1970 = 31% 1980 = 26% 1990 = 23% 2001 = 18.5%

the employment relations experts Equal Pay Legislation – Women and Pay (2001) Full time women earn 82 pence for every pound earned by full time male employees Part time women earn 60 pence for every pound earned by full time male employees 20% of women full time employees earn less than £200 per week compared with 8% of male full time employees.

How much more is a man worth than a woman? Southampton Echo 4 th November In the UK £1.58 In Hampshire £2.87 In Southampton £2.57 In Portsmouth £1.43 (Office of National Statistics)

the employment relations experts Equal Pay Legislation - reasons for the pay gap Occupational segregation Men tend to occupy the most senior levels Pay of men at senior levels, particularly in the SE and London outstrips that of women. Female dominated jobs tend to pay less than male dominated jobs

the employment relations experts Equal Pay Legislation- reasons for the pay gap The Equal Pay Task Force estimated that between 25% and 50% of pay disparity between men and women is due to pay discrimination

the employment relations experts What is pay? The ordinary basic pay or minimum wage or salary and any other consideration whether in cash or kind which the worker receives directly or indirectly from their employer

the employment relations experts What is pay? This includes pensions, bonuses, overtime, shift pay, sick pay, holiday pay and all benefits such as mortgage allowances, cars, private medicine etc.

the employment relations experts What is pay? It must be part of the employees contract of employment. Equal Pay Act covers all contractual terms whether concerned with pay or not.

the employment relations experts Equal Pay Act 1970 The right to equal pay for equal work. Equal work arises where men and women are performing work which- Is the same or broadly similar or Has been rated as equivalent under a job evaluation scheme or Is work which is different but of equal value

the employment relations experts Equal Pay Legislation Equal Pay Act 1970 Equal value – work which is different in nature but of equal value is regarded as equal when assessed under such headings as skill, effort and decision. The assessment process must be analytical and free of sex bias. It will normally involve a process of job evaluation

the employment relations experts Equal Pay Act 1970 Right is for men and women to receive the same pay Comparator must be in the same employment as the complainant – this means same employer or associated employer.

the employment relations experts Equal Pay Act 1970 Covers anyone employed under a contract of service or of apprenticeship or a contract personally to execute work or labour – wider than ER Act and covers everyone other than genuinely self employed

the employment relations experts Employment Tribunal Procedure No qualifying service Claim any time whilst doing the job but must claim within 6 months of leaving employment Remedies declaration monetary awards interest

the employment relations experts Possible reasons for pay differences Pay difference is due to a genuine factor other than a difference in sex Geographical location? Operation of market forces Skill shortages Must show all the difference is genuinely attributable to that factor Must show factor is objectively justified – based on real business need

The Benefits of equal pay Attract and retain the best employees Reduce recruitment costs Increase morale and motivation Increase productivity Enhance your image and reputation Avoid expensive legal costs of pay discrimination

What assistance is available the employment relations experts ACAS support Advice and guidance on :- - Equal Pay auditing - Job Evaluation - Review of Payment Systems Workplace projects Workplace training ACAS Helpline: ACAS website: