Equal pay threatens to divide Government

News Article - 18 June 2010
Category: Regulatory

Contrasting stances over equal pay audits could soon prove to be a point of conflict in the new coalition Government. Whilst the majority of the new Equality Act - rushed through Parliament in the final days of the Labour Government - is likely to be introduced, the Conservatives and Liberal Democrats are polarised on issues relating to equal pay and how to enforce it.

Prior to the election, the Tories confirmed they would seek to oppose three key tenets of the Equality Act: the socio-economic duty on public-sector authorities, positive action in the recruitment process, and gender pay reporting. However the Lib Dems are keen to introduce compulsory pay audits, which may make it difficult to reach a compromise.

Responsibility for equality now comes under the Home Office, with senior ministers from both parties involved in the formulation of new policy. Conservative Theresa May is Home Secretary whilst Liberal Democrat Lynne Featherstone - an equal rights campaigner - is Equality Minister. After several years campaigning Mrs Featherstone will be keen to push forward the Liberal Democrats' equality agenda.

Whilst the Government will likely be torn on how to address the issue of equal pay, businesses should remain aware that the equality agenda is becoming more prominent. Although it is unclear at this time what commitments will need to be made following the introduction of legislation targeting equal pay, companies should expect to take steps to improve equality in the workplace or suffer reputational damage as a result. As competitors begin to show a willingness to improve workplace equality, firms that cannot keep up may find it more difficult to recruit and retain key talent.

Access integrated payroll systems offers firms a comprehensive solution for pro-actively monitoring pay equality throughout the entire organisation. With the ability to keep comprehensive details on pay for all employees and break it down by a wide range of variables, including gender, companies can accurately and efficiently approach equal pay policy with firm and accurate statistics in mind. A comprehensive range of reports can be created, allowing visual representation of data to be easily made available to the boardroom.

For more information, please call Access on 0845 345 3300.

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