Firms are liable for larger compensation payouts to employees following changes to the Equal Pay Act which came into force on Saturday, 19 July.
Previously, companies in breach of the Equal Pay Act were liable to pay up to two years’ back-pay as compensation to the employee. However, the changes brought in under the Equal Pay Act 1970 (Amendment) Regulations 2003 mean that this two-year limit has been removed and companies now face having to pay to up to six years back-pay.
There may also be an increase in the number of unequal pay claims as the six-month period after employment has ended during which a claim can be made, has been extended in some circumstances.
Employers can minimise the risk of claims by carrying out regular equal pay reviews and responding quickly to equal pay questionnaires.
The Equal Opportunities Commission has published an Equal Pay Review Kit which gives advice to employers on good equal pay practice.
2 Responses
Equal Pay Claims
Dear Veronica
Yes, comparisons can be made across different sites, as long as it is the same employer.
Multi sites
Can the comparison in salaries for sexual discrimination be carried out between different sites of a multi site operation or does it have to be same site only?