Overview

This Equal Pay Bill aims to strengthen equal pay rights in the UK. It introduces a "Right to Know" allowing employees to access information about comparators' pay to help build equal pay claims, reforms time limits and remedies for equal pay disputes, and mandates pay gap reporting by employers for both gender and ethnicity.

Description

The bill makes several key changes to existing legislation:

Right to Know Information:

Grants employees the right to request pay information from their employer (or associated entities) about a comparator (a person of the opposite sex or different ethnicity doing similar work). The information includes pay details (basic pay, bonuses, overtime etc.), job descriptions, and details of any job evaluation systems used. Employers must respond within 20 working days. Failure to comply leads to potential legal action, including costs awards and penalties.

Comparators:

Broadens the definition of a "comparator" to include individuals employed by the same employer or an associated employer, or where a single body could rectify pay differences. This simplifies the process of finding comparable roles for equal pay claims.

Time Limits:

Allows employment tribunals flexibility in setting time limits for equal pay claims, considering what is "just and equitable" in each case.

Remedies:

Expands remedies available in equal pay cases to include compensation for injured feelings, personal injury and loss of pension rights.

Statement of Particulars:

Requires employers to include a description of employees' equal pay rights in their employment contracts.

Gender and Ethnic Origin Pay Gap Reporting:

Extends mandatory pay gap reporting to include ethnic origin pay gaps, and reduces the employee threshold for mandatory reporting from 250 to 100. Requires employers to publish an action plan to reduce any pay gap.

Government Spending

The bill doesn't directly specify government spending. However, there will be some costs associated with enforcing the new regulations and potential legal challenges. Conversely, there could be long-term savings through reduced legal disputes and increased pay equity.

Groups Affected

• Employees: Gain access to comparator pay information, potentially strengthening their ability to pursue equal pay claims. Improved access to remedies for successful claims.
• Employers: Required to provide pay information upon request, face potential penalties for non-compliance, and must report gender and ethnic origin pay gaps, including action plans.
• Employment Tribunals: Increased workload due to potential rise in equal pay claims and appeals.
• Equality and Human Rights Commission: Increased responsibility for enforcing the new regulations and investigating complaints.

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