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Compulsory Pay Audits
The Government has recently announced that as part of its response to the Modern Workplaces consultation it is planning on introducing new powers for Employment Tribunals to order compulsory pay audits.

It has said that if a Tribunal finds that an employer has discriminated on the grounds of sex in respect to contractual or non-contractual pay it will be obliged to order the employer to conduct a pay audit if there are cases where continuing discrimination is likely. However, it seems that business with five or fewer employees are likely to be exempt initially.

The details of exactly what this will entail are expected to be discussed as part of a consultation later in the year, although it appears that a pay audit would not be ordered if an audit had been completed during the previous 3 years, the employer has transparent pay practices or the employer can show a good reason why it would not be useful.
Posted on 19 Nov 2016


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