How to: protect yourself from equal pay claims

19 February 2010 by
How to: protect yourself from equal pay claims

The number of workers taking action against their employers over equal pay is growing, particularly since last year's report by the Equality and Human Rights Commission (EHRC), which revealed that a huge gender pay gap still exists.

With equal pay legislation tricky to interpret, processes difficult to develop, and attitudes hard to change, many businesses may be leaving themselves open to equal pay claims.

Here are 10 tips from consultant Watson Wyatt on how to avoid such pay claims:

  1. Is equal pay a consideration in your company's HR policy?
  2. Does your HR team understand the implications of current and future equal pay legislation?
  3. Is equality of pay embedded in the recruitment and retention policies of your firm, including monitoring starting salaries according to gender?
  4. Do your company owners and directors understand and sponsor the concept and implications of equal pay?
  5. Do your managers understand the concept and implications of equal pay?
  6. Does your business have a job evaluation scheme?
  7. Does your company believe that the job evaluation scheme can manage the issue of equal pay in your organisation?
  8. Does your organisation provide guidelines to help managers in performance management discussions and in the allocation of pay increase and bonus awards?
  9. If challenged, would your organisation be able to justify gaps in base pay and annual bonus between a male employee and a female employee who have the same role and responsibilities?
  10. Does your organisation have a process to deal with an equal pay claim?
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