Overview

This Equal Pay Bill aims to strengthen existing UK equal pay laws by giving employees more access to pay information about their comparators, reforming time limits and remedies for equal pay claims, and mandating pay gap reporting by employers for both gender and ethnicity.

Description

The bill makes several key changes:

Right to Know Information:

Employees who suspect pay inequality can request pay information from their employer (or associated entities) about a comparator (someone of the opposite sex or different ethnicity doing similar work) for the preceding six years. This includes basic pay, hours, bonuses, overtime, and details from the P60 tax form, job descriptions, and job evaluation information. Employers must respond within 20 working days. Failure to comply can result in court orders for disclosure and cost awards, as well as potential penalties from the Equality and Human Rights Commission.

Comparators:

The definition of a "comparator" is broadened to include situations where a single entity controls pay for both the employee and the comparator.

Time Limits:

Employment tribunals gain discretion to extend time limits for equal pay claims beyond the standard period, if deemed fair.

Remedies:

Remedies for equal pay claims are expanded to explicitly include compensation for injured feelings, personal injury, and loss of pension rights.

Statement of Particulars:

Employers must include details about employees' equal pay rights in their employment contracts.

Gender and Ethnic Origin Pay Gap Reporting:

Employers with 100 or more employees must publish data on gender and ethnic pay gaps, including mean and median hourly pay, and total pay for full-time and part-time employees, broken down by pay quartiles. They must also publish action plans to reduce these gaps.

Government Spending

The bill doesn't directly state the cost to government. However, increased enforcement activities and potential penalties administered by the Equality and Human Rights Commission could increase government expenditure indirectly, while increased compliance by employers could reduce potential legal costs to the government in the long run.

Groups Affected

• Employees: Gain greater access to pay information, potentially leading to more equal pay claims and improved pay equity.
• Employers: Face new reporting requirements and potential penalties for non-compliance, incentivizing pay transparency and equity. Larger employers will be most affected.
• Equality and Human Rights Commission: Takes on increased enforcement responsibilities.
• Employment Tribunals: Will handle a potential increase in equal pay claims.

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