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www.lynchbuchanan.co.uk

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High Wycombe HP13 5DT

 
 
 


Equal Pay Reports: Your reputation is at risk of real damage.

Within your data are insights to Pay that show why pay is not equal.

We are data specialists with the skills to prove difference. 

Helping staff to understand what drives pay is increasingly important.

We provide employers with the evidence


 
 
 

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 180819_WhyEqualPay.pdf

 
 
 
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        © Copyright 2018, LynchBuchanan 
Equal Pay - it's not about being "fair"

It is clear that most of the national audience misunderstands Gender Pay - it is therefore not surprising that Equal Pay is also being substantially misunderstood. 

As ever in these cases, there are some legal firms chasing metaphorical ambulances and seeking to combine the cases of the staff of large employers, into class actions. This is another development from the USA that employers could do without, we're sure.
What the UK Law states

Employers need to know about the main statute: 
    the Equality Act 2010
The UK government have some useful guidance on this:
https://www.gov.uk/guidance/equality-act-2010-guidance

Fundamentally, employers must pay staff the same amount for equal value.
The distinction between own staff and agency staff is becoming blurred - be very careful on this. 
The definition of role "value" is open to interpretation: be extremely careful on this. 
Different locations does not necessarily mean different pay is allowed. 

So, this is all a dream come true for the litigious.

Update on Court Cases

In 2012 Birmingham City Council decided to pay out £1,000,000,000 in Equal Pay compensation (a billion, and this has more or less bankrupted the Council) on the basis that their Job Evaluation scheme was flawed, and wrongly led them to under pay pay care workers, cooks, and other employees less than their bin-men. As a consequence each claimant has also won the right to the equalisation of the pay differential going back six years. 

Now Tesco has a potential Equal Pay case valued at £4bn.
Asda has an Equal Pay case currently reckoned at 100m.
NEXT has an Equal Pay case valued at 40m.

The Judiciary Service has a discrimination case (against the young) valued at over £25m a year.

Of course, there are a number of very active law firms. Call us for more details.

Equal Pay Risk Reduction

As soon as an employer has more than about 100 staff, then there is a real risk potential claims for Equal Pay from male and female, young and old.  Care must be taken before implementing a different suite of pay rises, promotions and pay agreements.

First IDENTIFY where risk may occur. Our approach splits the analysis into a) Role Based, and b) Personal basis. Fundamentally, allows the evaluation of equal pay between roles to be taken from many different perspectives, and the resulting risk analysis shows where action on Equal Pay may be required. 

Pay Drivers - Taking a sensible approach

The first step to risk reduction is to complete the Pay Gap analysis.
As this can be done using the Gender Pay Reporting information, we recommend doing this simultaneously. 

We operate a "minimally invasive treatment" as far as possible. The best people to decide pay are usually the local managers dealing with the recruitment - it is preferable to have no interference, unless there is a genuine case that needs further investigation.