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Consultation on mandatory equal pay audits24 June 2013 | All | Equal Pay

The Government Equalities Office

(GEO) published a consultation paper [10] in June on theintroduction of mandatory equal pay audits [5].

But the paper, which follows the 2011 'Modern Workplaces: equal pay consultation', could have some

worrying consequences, according to one employment lawyer.

Employers could try to avoid equal pay audits

Anne Pritam, an employment partner at Stephenson Harwood, said: ?The government has written into

the most recent consultation exercise specific exceptions to the rule when employers would be ordered to

conduct an equal pay audit [5].

?A lot of employers will try to manoeuvre themselves into one of the exceptions in order to avoid having

to carry out an audit.?

Pritam said many employers would find it hard to carry out an audit. ?There could be some worrying

ramifications, not least because the intention of the audit seems to be that the employer would have to

disclose it to at least the people who have been audited, which could give rise to further claims,? she said.

Mandatory equal pay audits for large private sector companies

This news comes as the parliamentary committee on Business, Innovation and Skills (BIS) has suggested

that equal pay audits should be mandatory for large private sector companies [9]. Adrian Bailey,Chair of the committee, argued that the Government should introduce the regulation because

http://www.paydata.co.uk/http://www.paydata.co.uk/https://www.gov.uk/government/news/further-consultation-on-gender-pay-gap-launchedhttp://www.paydata.co.uk/services/pay-review-analysis/equal-pay-auditshttp://www.paydata.co.uk/services/pay-review-analysis/equal-pay-auditshttp://www.payandbenefitsmagazine.co.uk/pab/article/mps-call-for-mandatory-equal-pay-audits-12339381http://www.payandbenefitsmagazine.co.uk/pab/article/mps-call-for-mandatory-equal-pay-audits-12339381http://www.paydata.co.uk/services/pay-review-analysis/equal-pay-auditshttp://www.paydata.co.uk/services/pay-review-analysis/equal-pay-auditshttps://www.gov.uk/government/news/further-consultation-on-gender-pay-gap-launchedhttp://www.paydata.co.uk/http://www.paydata.co.uk/

7/28/2019 Paydata Ltd - Consultation on Mandatory Equal Pay Audits

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discrepancies in pay still exist, despite the introduction of the Equal Pay Act four decades ago.

From 2014, under the Enterprise and Regulatory Reform Act 2013, employment tribunals will be able to

require employers that are found to have committed a serious breach of equal pay law to carry out an

equal pay audit to decide whether their pay system is discriminatory.

Employers that are ordered to complete an audit would have to address any pay inequalities identifiedthat could not be explained by reasons other than gender.

The GEO consultation closes on 18 July 2013.

Source URL: http://www.paydata.co.uk/knowledge-hub/consultation-mandatory-equal-pay-audits

Links:[1] http://www.paydata.co.uk/knowledge-hub[2]http://www.employeebenefits.co.uk/102160.article?cmpid=ebnews_1300453923&cmptype=GeoPost%20UKenrolment[3] https://www.gov.uk/government/consultations/equal-pay-audits-a-further-consultation#download[4]http://www.employeebenefits.co.uk/102160.article?cmpid=ebnews_1300453923&cmptype=GeoPost+UK+geenrolment[5] http://www.paydata.co.uk/services/pay-review-analysis/equal-pay-audits[6] http://www.peoplemanagement.co.uk/pm/articles/2012/10/equal-pay-case-could-cost-council-2m-in-compensation.htm[7] http://www.peoplemanagement.co.uk/pm/articles/2012/12/link-found-between-equal-pay-reports-and-

more-senior-women.htm[8] http://www.employeebenefits.co.uk/compliance/employers-could-try-to-avoid-equal-pay-audits/102277.article[9] http://www.payandbenefitsmagazine.co.uk/pab/article/mps-call-for-mandatory-equal-pay-audits-12339381[10] https://www.gov.uk/government/news/further-consultation-on-gender-pay-gap-launched

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