Equality and Human Rights Commission

This is a question that concerns many employers. It is important both that unequal pay is equalised and that pay policies causing pay gaps are changed as soon as practicable. Liability for equal pay starts from the point at which a claim is submitted (with up to 6 years’ back pay).

However, it may not be possible, for cost and other reasons, to provide equal pay immediately. Your action plan should make your timescale clear and it should be as speedy as possible. If the pay gap you have identified is due to direct sex discrimination (i.e. you are paying a woman less because she is a woman) then there should be no delay in equalising pay. You should also stick to the timescales, otherwise delay may provoke equal pay claims.

Employee relations factors may also be important. Providing equal pay is likely to mean redistribution of the overall pay budget over a period of time to favour 'underpaid' employees. You may need to manage factors such as the possible dissatisfaction of employees who perceive a loss of status, or the erosion of differentials, whilst equal pay is being provided.

Am I still vulnerable to claims?

Remember that, whilst you are equalising pay, you remain vulnerable to equal pay claims. And the focus of equal pay audits on systemic inequality – based on averages – means that you may still be vulnerable to claims from individuals or groups.

An example of pay related actions from an action plan following an equal pay audit in a government department

Distribution of base pay within ranges

To continue to reduce the differences between the median base pay of men and women in each range by revising our pay system to include a system of progression which will focus on moving staff in each range to a target rate within a specified period of time.

We will continue to monitor the relationship between the female and male medians on an annual basis to see whether changes are having the desired effect and to see where further action might be necessary.

Performance bonus payments

In introducing the new pay system, we will consider whether the current policy of pro-rating performance bonuses should be maintained, or whether such a policy carries with it a disproportionate and unfair impact on women.

Annual pay award

To continue to examine the impact of our pay system on men and women by monitoring the effect of annual pay awards on the male and female populations in each range to confirm that, after taking account of other factors (eg promotion) the pay differential is reduced year-on-year.

Starting salaries in the range

To ensure that our systems ensure that people are joining ranges on the appropriate salary to reflect previous experience and skills irrespective of whether it is an internal promotion, a move from another govt dept or direct entry to the civil service.

To examine, in more detail, how line managers exercise the current delegation to set starting salaries for staff joining other govt departments, assess the impact this has had on the differences in starting salaries between men and women entering the department via this route and develop, as part of the new pay system, a more robust mechanism for line managers determining starting salaries of those transferring in from other govt departments that allows the department to continue to recruit the people it needs without creating – or importing – pay anomalies as a result of staff arriving on salaries that are out of line with those paid to existing staff of the same range and experience.

Average increase in pay since joining

To continue to monitor data on the salary history of selected individuals.

Part-time staff

To continue to monitor the salaries of part time staff to ensure that they remain at the same level as full time staff.

Specialists

To review market data to identify whether the gender profile for the different specialists within the department reflects that of the wider employment market.

Where there is a difference, to examine how external recruitment for the different professions is undertaken to ensure that there is no underlying bias that prevents women from taking up posts in the profession.

To undertake a comparative analysis across the ranges of generalist and specialist staff to ensure that the departmental norms in respect of box marks, promotion opportunities etc are repeated for specialists.

To examine the levels of enhancements themselves to ensure that they properly reflect the market and do not have any gender bias built-in.

Other pay and non-pay benefits

To monitor all other pay and non-pay benefits to ensure that their application continues to offer equal benefits to both men and women.