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A Guide to Internal Pay Equity Gender discrimination takes center stage in discussions of internal pay equity, but many other protected In Compensating Your Employees Fairly, a respected practitioner and consultant lays out in practical.
Table of contents

For example, a female new hire can end up with unfair pay if your company makes an offer based on her previous wages or aggressively negotiates over salary.

How Much Should You Pay a Cleaning Employee?

A thorough analysis of these areas of the company can help your team uncover all the different factors that contribute to an internal pay gap. Some problems will need to be addressed right away and others will take longer to sort out. Here are some tips for breaking the glass ceiling in your company:. Closing your internal pay gap will take a lot of planning and patience. Convince the leaders of your company to do the right thing and join the fight for equal pay for all. How to Be a Successful Mompreneur 5 min read. Learn More.

See why thousands of top companies use Recruiterbox to manage hiring Learn More. Schedule a call. For example, crowdsourced compensation data is easily found online and has substantially increased in volume over the past three years. By no means is it a perfect resource to determine competitive pay — largely due to inherent quality concerns with self-reported salary data. Still, in part due to these newer technology platforms, younger employees are more likely to share pay details with their colleagues and peers.

This has fostered a new environment where talking about pay at work is not uncommon. The topic of pay equity is widely covered in the press, which can also contribute to more honest and open conversations around pay.

Pay Equity Resources

Obviously, there are legal considerations around pay transparency as well. The increase in pay equity laws at the state and local level now include Oregon, Massachusetts and New York City, where the regulations limit the ability of employers to keep pay levels secret. Long-time employees are also looking at where they stand in the marketplace and what kind of pay equity exists within their firms. So, what is an organization to do to address these changes and this move toward more transparency?

Where these engagements were once driven by compliance, today these conversations revolve around connecting job architecture transformation with pay equity — and vice versa — to establish fair pay for everyone. Some companies have instituted more rigid, tighter pay practices that avoid the continuous practice of individual pay adjustments.

At those companies, the solution lies in addressing the root causes of pay inequity rather than doing one-off adjustments that result in uneven pay bands. Putting the work in to develop a clear, transparent job architecture is the first and perhaps most important step to ensuring pay equity. Second, tightening guidelines and limiting hiring manager discretion when setting starting pay is often key.

What is equal work?

Employee retention and satisfaction will suffer once employees see a disconnect between their pay and what they think or heard should be their fair share. Again, it is important for employers to understand that employees share information both face-to-face and across social media with friends around the country. There is no hiding this data, and we have seen that trying to do so only makes your employees — and potential recruits — less likely to trust you. While technology and information-sharing have changed the landscape around pay equity, these basic steps can address issues before they arise.

She can claim equal pay for equal work with a comparator doing work that is:. Since 6 May , a woman is required to notify Acas of her complaint before starting a claim in the employment tribunal, and to follow the Acas Early Conciliation procedure. Acas will then offer a free conciliation service for the parties before a claim reaches the employment tribunal. The time limit for a claim may be extended to allow for conciliation. You can find out more on early conciliation from Acas.

Acas provides guidance on asking and responding to questions of discrimination in the workplace. An employment tribunal is able to take the replies to any questions put by the employee into account if it considered them relevant. It means that employees have the right to know how the calculations are made.

Pay Equity Mini Series

The Equality Act has now made secrecy clauses in employment contracts unenforceable when the discussion relates to equal pay and protects employees from victimisation if they seek to find out what other employees earn for this purpose. For further clarity see the Code of Practice on Equal Pay. There needs to be a balance between the ideal of transparency and the rights of individual privacy.

A woman cannot require an employer to disclose confidential information, unless she asks for an order from the employment tribunal and the tribunal orders the employer to do so. A woman can write to her employer to request key information. In many cases an employer will be able to answer detailed questions in general terms, while still preserving the anonymity and confidentiality of other employees. Pay records will usually include personal data covered by the Data Protection Act and General Data Protection Regulations, which can only be disclosed in accordance with data protection principles.

Other personal information, such as ethnic origin and medical details, are also subject to particular safeguards. The disclosure of confidential information in the employment context is also protected by the implied duty of trust and confidence owed by an employer to an employee. Under the Trade Union and Labour Relations Consolidation Act , employers have a duty to disclose to a recognised trade union, on request, information to enable constructive collective bargaining.


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As a general rule, an equal pay claim must be lodged with an employment tribunal within six months of the date of the end of the woman's employment with the respondent. The time limit for a claim may be extended to allow for conciliation under the Acas early conciliation procedure. You can get advice on early conciliation from Acas. The woman bringing an equal pay claim has to show the employment tribunal that, on the face of it, she is receiving less pay than a man in the same employment doing equal work.

Her employer must then either accept her claim or prove to the employment tribunal that the difference in pay was for a genuine and material reason, which was not the difference of sex. The possible defences for an employer against an equal pay claim include:. Back pay can be awarded up to a maximum of six years five years in Scotland from the date that proceedings were filed with an employment tribunal.


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  7. The employment tribunal may also award interest on the compensation and it can order the employer to carry out an equal pay audit. A woman might think she is being discriminated against in respect of non-contractual or discretionary payments, or in relation to issues such as recruitment, training, promotion, dismissal or the allocation of benefits. In such a case, her claim will be made under the sex discrimination at work provisions of the Equality Act , rather than the equal pay provisions.

    She can also make such a claim where she cannot identify a male comparator but thinks that a man doing her job would have been paid more than she is. The distinction between these types of claims is not always clear cut. If there is any doubt as to which provisions apply, a woman should seek legal advice. This is especially important because different time limits apply. The conciliation procedures above must be complied with first and in some cases the time limit may be extended to allow for conciliation. For Armed Services personnel the time limit is six months from the date of the act complained of if they have followed the appropriate procedures.