The Government has stated that, if no action is taken to deal with the widespread discrimination which exists in today’s society, the pay gap between men and women will not close until 2085 and it will take a further 25 years for people from ethnic minorities to have the same job prospects their white counterparts. In response to this concern, Harriet Harman has published the Equality Bill which is planned to take effect from Autumn 2010.
It will replace the Equal Pay Act 1970, the Sex Discrimination Act 1975, the Race Relations Act 1976, the Disability Discrimination Act 1995, much of the Equality Act 2006, the Employment Equality (Religion or Belief) Regulations 2003, the Employment Equality (Sexual Orientation) Regulations 2003, the Employment Equality (Age) Regulations 2006 and the Equality Act (Sexual Orientation) Regulations 2007.
The Bill has two main purposes: the harmonisation of discrimination law; and the strengthening of the law to support progress on equality through the following measures:
- Introduction of a new public sector body which is to consider how to reduce socio-economic inequalities
- Imposing a new Equality Duty on public bodies
- Using public procurement to improve equality
- Banning age discrimination outside the work place
- Introducing gender pay reports
- Extending the scope to use positive action
- Strengthening the powers of Employment Tribunals
- Protecting carers from discrimination
- Offering new mothers stronger protection on breast-feeding in public
- Banning discrimination in private clubs
- Strengthening protection of discrimination for disabled people
The following are most likely to affect the private sector businesses:
Gender Pay Reports
The Government wants private sector employers with at least 250 employees in Great Britain to publish information on what they pay their male and female employees. The Government has suggested that it does not intend to regulate under this power before 2013. However, it is likely that those employers who choose not to publish this information on a voluntary basis during this interim period will be forced by the Government to do so after 2013.
Ban on Secrecy Clauses
Secrecy clauses in employment contracts will be banned so employers will no longer be able to prevent employees discussing their pay with their colleagues. This is considered to be vital in order to close the pay gap as employees would seek to establish whether a pay differential is because of a “particular protected characteristic” such as gender, race, disability, age etc.
Positive Action: Recruitment and Promotion
Employers will be able to take positive action to appoint a person from an under-represented group provided that all the candidates are equally suitable. This means that employers can take protected characteristics into consideration when deciding who to recruit or promote where people having that protected characteristic are in a minority. However, employers should remember that positive discrimination (appointing someone because of the characteristic regardless of merit), as opposed to positive action, will remain illegal.
Employers are advised to have statistical evidence available to show there is an under-representation in their workforce when operating a positive action policy. Employers should also ensure that their recruitment processes are sufficiently rigorous so that all candidates have a fair opportunity to put forward their case.
The Equality Bill is due to receive its first reading in the House of Lords in Autumn 2009 and thereafter should receive Royal Assent in the spring of 2010 with a view to commencement in autumn 2010. We would be happy to help employers review the likely impact of the Bill on their businesses and consider ways in which current practices should be adjusted in order to accommodate the forthcoming changes.
This article was first published in Newsbrief, Summer 2009.
For more information or advice on the Equality Bill, please contact Suki Harrar.
