Equal Pay Audit Orders - Potential for public humiliation
From 1 October employers who have been held by an employment tribunal to have breached equal pay legislation may now be ordered to conduct an equal pay audit and make public the results.
In addition to being required to directly inform all employees whose pay data is included in the audit (potentially the entire workforce) where they can obtain a copy of the audit’s findings, the employer must also publish the results of the audit on its website within 28 days and keep it on there for at least three years.
Employers should bear this new sanction in mind. In addition to the potential embarrassment of having to make the findings public, conducting an audit can be an expensive and time consuming process.
Employers may wish to view the introduction of this new regime as a nudge to carry out a review of their pay practices and satisfy themselves that they are complying with the legislation. However, if you do find yourself on the wrong end of an equal pay claim this new sanction should be borne in mind when considering whether settlement might be appropriate.
Posted on 10/20/2014 by Ortolan
