Equal Pay Audits

1. Equal Pay Audits 19 November 2014

2. Whereas universal and lasting peace can be established only if it is based upon social justice; And whereas conditions of labour exist involving such injustice, hardship and privation to large numbers of people as to produce unrest so great that the peace and harmony of the world are imperilled; and an improvement of those conditions is urgently required; as, for example….. the provision of an adequate living wage…. recognition of the principle of equal remuneration for work of equal value, recognition of the principle of freedom of association…. Preamble to the Constitution of the ILO 1919

3. The Equality Act 2010 (Equal Pay Audits) Regulations 2014 Applies to any claim received by the Employment Tribunal on or after 1 October 2014

4. An Equal Pay Audit: • States the pay of men and women • Identifies the differences in pay between the men and women • Identifies the reason(s) for the pay differences. • Gives the reasons for any potential equal pay breach • Sets out the plan to avoid equal pay breaches occurring or continuing. • s139A(3) and (4) Equality Act 2010 • Regulation 6 Equal Pay Audit Regulations 2014

5. The Equality and human Rights Commission equal pay audit toolkit: www.equalityhumanrights.com. • Help with all aspects of an equal pay audit including what is the reason for a pay difference but its up to the employer to work out whether any discrimination is justified. Common reasons • Market factors • Length of service • Starting pay, progression and pay protection. • Performance • Other pay terms such as overtime and shift payments.

6. Hurdle number one is winning an equal pay claim Para 2 Equal Pay Audit Regulations 2014

7. Hurdle number two is persuading the Tribunal to make an order • No order if: • The employer carried out an audit within the 3 years before the claim • What needs to be done is clear • The tribunal have no reason to think there is any other unjustified unequal pay. • The disadvantages of an audit outweigh the benefits. • The employer is a micro business or new business • Paragraph 3 Equal Pay Audit Regulations 2014

8. Hurdle number three – the terms of the order • An order for an Audit must— • Specify which employees the audit must cover • the period of time to which the audit must relate. • specify the date, at least 3 months after the order, by which the audit must be received by the tribunal. • Para 5 Equal Pay Audit Regulations 2014

9. Hurdle number four – getting to find out what the outcome of the audit is. • The Tribunal see the audit. • The Tribunal decide whether the audit complies with the requirements. • Within 28 days of the Tribunal order that the audit complies with the requirements the employer must publish the audit on their website or, if they do not have a website, telling the people covered by the audit where they can get a copy unless publication would result in the breach of a legal obligation (such as data protection) • Para 6 and 7 Equal Pay Audit Regulations 2014

10. If the employer fails to comply with the order to do the audit: If there is no reasonable excuse and the Tribunal thinks they can afford it they pay up to £5,000 to Secretary of State plus up to a further £5,000 if they fail to carry out the audit after being given more time. Para 11 Equal Pay Audit Regulations 2014