Equal pay seems simple - the same money for the same job. But recent legal cases for employers like Sainsbury’s shows that it covers jobs offering the same value but in different posts. Do you need to re-evaluate the salaries you offer?
In the news, Mark Carney suggests that an interest rate rise could be on the way. And should we be surprised that half of MPs don’t know about small business policies?
Top news stories
Interest rates could rise as early as January
Mark Carney has given his strongest indication yet that a rise could be on the way.
Half of MPs unaware of small business policies
55% hadn’t heard of Catapult Centres and 48% were unaware of Innovate UK.
Summer holidays cost home businesses £658 million
60% of business owners with children say they will be taking time out - and then working extra hours to try to cover their work.
The new contactless payment system was launched in the UK on 14 July.
Retailers face most volatile sales in a decade
In 2014, small retailers saw a 36% difference between average sales in the best and worst months.
Key dates for your diary
21 July: Public Interest Disclosure (Prescribed Persons) (Amendment) Order 2015 comes into force: Schools and other educational institutes are now included in the list of organisation to whom employees can make a qualifying disclosure. Find out more on the government's legislation website.
Do you pay your staff equally?
The majority of business owners are committed to offers fair wages to their employees. But with differing roles in a business, it can be harder to tell if you’re complying with legislation. Jobs which offer a similar value but work in different areas of the business also need to pay on a comparable level - something that employees at Asda and Sainsbury’s are currently testing with legal action.
We look at what you need to do to stay on the right side of the law.
What businesses must offer
The law says that men and women must be paid the same for jobs that:
- are the same or similar
- have been rated as equivalent under a job evaluation scheme
- offer the same value in terms of skill, effort or decision making
You can find full details in the Equal Pay: Statutory Code of Practice.
If you have 250 employees or more, under new legislation being introduced in the Small Business, Enterprise and Employment Bill, you will soon need to publish information about the differences in pay between male and female employees. The government has announced a consultation to decide how this will be done.
What you can do to ensure you meet legislation
Follow these steps to see if you need to make any changes:
- Do an audit: look at all the salaries for your employees in the same or similar roles and see if there is a difference. The Equality and Human Rights Commission has good advice about how to run an audit.
- Check job titles: does everyone in a similar role have the same job title? These should be consistent, as it makes it easier to spot any pay discrepancies. This is especially important if the salary is linked to the job title.
- Look at your salary bands: very wide bands can leave you open to claims of discrimination. Make sure that the salary within the bands are based on clearly measurable factors - experience, performance, etc
- Check part-time staff are paid pro-rata: make sure you understand how to calculate this and how holiday entitlement works for part-time workers. The government has some advice about part time employees’ rights. They also have a holiday pay calculator.
- Ensure employees understand their salary: you should share information about how their pay is made up and also any information about benefits, such as bonuses and flexible working.
- Respond to any queries: under the Equality Act 2010 it’s unlawful to prevent your employees from having discussions to establish if they are paid the same as their peers. If employees ask for information about pay differences, you must provide information and explain the reasons.