Workplace Report September 2010

Equality news

Pay guidance

The Equality and Human Rights Commission (EHRC) and the British Chambers of Commerce have jointly published guidance that encourages small and medium sized businesses to examine their pay systems to ensure they comply with equal pay laws.

The guidance explains that the process is relatively simple for a small organisation and should take no longer than four hours.

It is hoped that while there are multiple causes of the pay gap this guidance will help create fair transparent pay systems.

Dr Jean Irvine, commissioner at the EHRC said: “Employers need pay systems that are both transparent and fair. While transparency is not enough in itself to reduce the pay gap between men and women, it does provide clarity; it is difficult, if not impossible, to resolve a problem that cannot be seen.” Forty years on since the Equal Pay Act, women who work full time are still paid on average 16.4 % less per hour than men. This gap is wider in the private sector than in the public, at 21.6 % compared to 14.6 %.