Equality and Human Rights Commission

If you have not found differences between the pay of men and women doing equal work (or other groups you have checked), then your audit is positive. Keep the records of this audit and repeat it again every couple of years to ensure you are staying on track. Consider introducing an equal pay policy.

If you have found pay differences between the pay of men and women doing equal work (or other groups you have checked) that you cannot justify, you should take action to deal with these pay gaps. You should deal with the pay gaps immediately. 

In the vast majority of small firms there are likely to be very few pay gaps that need addressing. You have identified the causes of the differences in step four of the audit - perhaps differences in basic rate, or differences in overtime or bonus rates. You need to take action to close the gaps in pay by tackling those particular causes. This will help ensure the problem does not recur. Then repeat the audit every couple of years to ensure you are staying on track.

If some jobs in your firm are seen as ‘men’s jobs’ and others as ‘women’s jobs,’ or you find that staff from particular ethnic groups do some roles and not others, you may need to consider what steps you can take to change this, and how you could encourage underrepresented groups into these areas.

Equal pay policy

A simple written policy on equal pay will show your commitment to fairness and help to make sure you continue to provide equal pay.

This should state that:

• Your business will provide equal pay for equal work
• Pay will not discriminate unfairly between men and women, or between employees of different ethnic origins, or between disabled and non-disabled employees
• Equal pay principles will apply to basic pay and all elements of total pay, including overtime rates, bonuses, and non-cash benefits
• An equal pay audit will be carried out every two years to ensure the policy is working

Back to Equal pay audit kit for small businesses.