Employers who lose equal pay claims could face audit

Employers who lose an equal pay claim could now be subject to an equal pay audit on their entire workforce.

The update to the Equality Act came into force on 1 October and means that tribunals are obliged to order the audits on any employers who lose an equal pay claim.

There are a few exceptions, such as cases where the tribunal decides the audit would be more problematic than beneficial, or if it thinks there is no reason to believe there are any other equal pay breaches within the company.

Businesses that have undergone an audit within the last three years would also be exempt, as would companies that are less than 12 months old or have less than 10 full-time employees.

The equal pay audits can cover all aspects of an employee’s income, including sick-pay, bonuses, overtime and pensions. Employers would be ordered to publish the results of the audit on their website, and also inform all their employees and relevant unions of the findings.

Please contact Robert Bedford if you would like more information about the issues raised in this article or any other aspect of employment law.