PAY DISCRIMINATION
New EOC guidance on market forces
Market forces can provide a defence to an equal pay claim, but the scope for using market forces to justify the difference in pay between a man and a woman doing equal work is limited, according to new guidance published by the Equal Opportunities Commission.
As the EOC explains: "An employer cannot rely on the fact that the market rate suggests that certain jobs usually done by women are paid at less than jobs usually done by men, because the market rate may itself be based on discriminatory assumptions. What an employer has to show is not that 'that's what everybody else pays' but rather 'that's what I had to pay to get the person I needed to fill the vacancy I had'."
For a market factor to act as a defence to an equal pay claim you must be able to show that the factor was genuinely taken into account when setting the rates of pay of both the applicant and the comparator. To succeed any "genuine material factor" defence must satisfy three distinct elements:
Want to know more?
The new report is available free of charge on the Equal Opportunities Commission web site at www.eoc.org.uk/cseng/advice/practical_tips_on_equal_pay.asp?SubDate=Wednesday+24+December%2C+2003
The EOC web site contains a series of practical guides that aim to help employers deal with the more common causes of unequal pay in the workplace. The "tips" will help you sort out any problems identified by the equal pay review process.
There are now 13 guides covering:
To access these reports visit www.eoc.org.uk/cseng/advice/practical_tips_on_equal_pay.asp
Posted 5 January 2004