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Compulsory equal pay audits for employers who lose equal pay tribunal claims

21 June 2012

Following last year’s ‘Modern Workplaces’ consultation, the government has announced that it intends to require employers who lose equal pay claims to carry out and publish equal pay audits.

The proposals mean that an Employment Tribunal would be obliged to order an employer to conduct a pay audit where it is found that an employer has discriminated on grounds of sex in contractual or non-contractual pay. Micro businesses will initially be exempt from the proposals.

A further consultation later this year will determine the exact content of the audit and the publication requirements.
The introduction of such audits may encourage employers to settle equal pay claims where they wouldn’t otherwise have considered doing so, and this will need to be considered when the legislation is implemented.

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