Mind the (pay) gap!

By Taylors Solicitors

29 May 2014

Whilst it is 44 years this week since the Equal Pay Act came into force, there is still evidence that the gender wage gap exists; in fact, a recent study by a national newspaper indicates that the gender pay gap remains stubborn and that male and female managers will not be paid the same until 2067.

By Ashna Chada, Employment Solicitor, Taylors

So what are the statistics?

Despite being over four decades since the Equal Pay Act came into force, men still earn more than women in nearly 90% of job categories and recent reports have found that women’s pay in the workplace is again falling behind by as much as 20% when compared to their male counterparts.

According to the research:-

- female health professionals have the biggest pay gap at 31%, which works out at an average of £16,000 a year;

- women working in culture, media and sport experience the next biggest pay gap at 27.5%, which equates to an average of £10,000 a year, and;

- women working in manufacturing occupations earn nearly some 24% less than men.

It's interesting to note that the three major occupations where women do earn more than men – transport drivers, electricians and agricultural workers – are all male-dominated,with fewer than 50,000 women employed in these sectors, compared to 1.5 million men.

An employer's legal position

The Equality Act 2010 outlaws pay discrimination and implies an “equality clause” into every contract of employment and stipulates that a woman (or man) is contractually entitled to equal pay with every man (or woman) in the same employment who is doing like work, work rated as equivalent, or work of equal value, unless the difference in pay is genuinely explained by something other than sex.

If you have female employees who believe they are affected by these issues, you may find that they are unhappy to sit out the 53-year wait and may subsequently raise concerns with you. It is therefore imperative that, as an employer, you anticipate this and check that you are in a strong position to avoid any potential equal pay claims. So here are our recommended action points...

1. Listen to the Law

The Equality Act requires that men and women receive equal pay for equal work. Jobs do not have to be identical for equal pay to be required, but substantially equal in terms of skill, effort and job responsibility, and performed under similar working conditions. The term pay refers not just to salary but also overtime, bonuses, vacation and holiday pay, stock options, life insurance and all other benefits and compensation of any kind paid to employees.

2. Ensure appropriate training is in place for Managers

Employers need to make sure that all supervisors and managers receive proper training on how to avoid wage discrimination.

3 Audit pay practices

Employers should frequently review their pay practices to make sure that they are not engaging in discrimination, for example, because of sex, race, national origin or any other protected class. Any differences that do exist should be based on legitimate and non-discriminatory factors and supported by written documentation.

And watch out for new legislation expected to be introduced in October 2014 on mandatory equal pay audits. Under the proposed new legislation, an Employment Tribunal would be able to order employers that have breached the provisions of equal pay legislation to carry out mandatory equal pay audits.

4. Appraisals

Ensure that appraisals are well-documented so employees are aware of their performance and that you have evidence to support this.

5. Base decisions on skill and performance

Managers need to make sure that all employment decisions regarding promotions, salary increases and bonuses are based on legitimate and non-discriminatory factors such as skill, merit and performance.

6. EOC Code of Practice Familiarise yourself with the Equal Opportunities Commission Code of Practice on Equal Pay (for further information, see www.eoc.org.uk). While the Code is not legally binding, a Tribunal may (and more often than not, do) take into account an employer’s failure to act on its provisions when considering a Tribunal Claim

Latest news

1

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London. The Rt Hon Jonathan Reynolds, the Rt Hon Christopher Luxon and the Rt Hon Steve Reed (L-R Front Row) David Hammond, and Daniel Knowles

Chiptech announces major innovation initiative at high-profile reception with the New Zealand Prime Minister in London.

30 Apr 2025

2

Northstone secures full planning permission for 50 new homes in Edenfield Edenfield housing development

Northstone secures full planning permission for 50 new homes in Edenfield

29 Apr 2025

3

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens Dovestone Gardens launch

Ring Stones Maintenance and Construction celebrates completion of Dovestone Gardens

29 Apr 2025

4

PHX Training welcomes new business leader to drive learner success Louise Kirby

PHX Training welcomes new business leader to drive learner success

29 Apr 2025

5

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire Lidl

Lidl to invest half a billion pounds in its expansion as it eyes sites in Lancashire

29 Apr 2025

Pc Prestonmacan Gif980x120 March
Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
LBV122 May/June Launch Event
121 Lancashire Business View Magazine Launch
Networking
21 May 2025

LBV122 May/June Launch Event

Lancaster and Morecambe College, Lancaster, LA1 2TY

08:30 - 10:30

Sub36 Networking
Networking
11 Jun 2025

Sub36 Networking

British Jewellery School, Scorton, PR3 1BA

15:00 - 17:00

Lancashire Net Zero Carbon Conference
Net Zero Carbon Social 1200px 2
Networking
18 Jun 2025

Lancashire Net Zero Carbon Conference

Crow Wood Hotel & Spa Resort, Burnley, BB12 0RT

08:30 - 13:00

Lancashire Built Environment Conference 2025
BEC 315 X 315 Px
Networking
25 Sep 2025

Lancashire Built Environment Conference 2025

Blackpool Football Club, Blackpool, FY1 6HX

08:30 - 13:00

CMI Level 5 Project Management Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Project Management Course

Preston Campus, Preston, PR1 2HE

08:00 - 17:00

CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - The Academy for Female Leaders and Managers
WENDY BOWERS RISE Illustrstion copy.jpg.jpg
LBV Hub Seminars
02 Apr 2025 - 08 Oct 2025

RISE - The Academy for Female Leaders and Managers

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:00 - 15:30

Planning for the future + navigating Inheritance Tax changes
Planning for the future + navigating Inheritance Tax changes for website.png.png
LBV Hub Seminars
01 May 2025 - 01 May 2025

Planning for the future + navigating Inheritance Tax changes

Stanley House Hotel, Mellor, Blackburn, BB2 7NP, Blackburn, BB2 7NP

08:00 - 10:30

Advantage: AI – A Workshop for Business Leaders – May 2
EV-land-2025-05B.png.png
LBV Hub Seminars
02 May 2025 - 02 May 2025

Advantage: AI – A Workshop for Business Leaders – May 2

Door4 Office, Burnley Wharf, Manchester Road, Burnley, BB11 1JG

09:00 - 11:00

A night at the races
1.png.png
LBV Hub Dinners / Balls
02 May 2025 - 02 May 2025

A night at the races

Morecambe FC, Morecambe, LA4 4TB

19:00 - 23:59

Research and Knowledge Exchange Showcase
13421_research_knowledge_exchange_2025_600x300.jpg.jpg
LBV Hub Awards
07 May 2025 - 08 May 2025

Research and Knowledge Exchange Showcase

University of Central Lancashire , Preston, PR1 2HE

09:00 - 17:00

Innovating business solutions through PhD Partnerships
30478 Skills Bootcamp open day setting.jpg.jpg
LBV Hub Networking
07 May 2025 - 07 May 2025

Innovating business solutions through PhD Partnerships

University of Central Lancashire, Preston , PR1 2HE

14:30 - 15:30

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more Lbv121 Online Graphic
Subscribe now

Weekly news bulletin