~By Lauren Poole~
In the last few months the issue of pay equality has risen. A recent survey from the Chartered Management Institute has revealed that in Wales, women in management positions are paid approximately 13% less than men in the same position. The survey also showed that women who are working in equivalent full time roles earn 22% less than men. These statistics mean that women are effectively working an hour a day for free.
Although equal pay legislation has been around for many years, the CMI show that there is still a problem of equality in Wales.
Changes in 2016
The CMI survey has shown that organisations with over 250 employees have the widest pay gap. Women can earn up to 27% less than men in large organisations. Therefore a new legislation has been put into force for 2016, which requires that all organisations with more than 250 employees will have to disclose what they pay their staff, both male and female. This will affect more than 40% of the UK’s workforce.
David Cameron said ‘The move would pressure [businesses] into boosting women’s wages, as he vows to eliminate the gender gap within a generation’.
What will it mean for businesses?
Businesses will soon realise that the government is pressing ahead to force large firms to disclose data on the gender pay gap among staff. Large firms will have to take more consideration to how they pay their staff to avoid any discrimination charges.
Businesses also need to be aware of the Equality Act 2010 which implies a sex equality clause is automatically included into the female’s contract of employment, contractual terms that are no less favourable than a males.
An amendment was made last year which means that any employer or organisation which loses an equal pay case will be obliged to undertake an equal pay audit of its employees. An equal pay audit (EPA) intention is to identify any inequalities that may exist and the reason behind those inequalities. The purpose of an EPA is to expose businesses gender pay gaps to result in the company correcting said inequalities.
If you would like to discuss anything from the above to see how it may affect you or your business speak to one of our advisors on Employment Law by calling 01792468684.