Gender pay gap consultation excludes 60% of workforce
Alex Mizzi, a solicitor on the employment law team at Howard Kennedy and whose clients include both large and small businesses across the UK said, “This consultation is light on detail and excludes some 60% of the work force.
“Larger companies do get it wrong – as the claims against Sainsbury’s and Asda allege – but those businesses tend to adopt more formal pay grade structures that help to identify and eliminate pay inequality.
“By leaving out those businesses that employ under 250 people the Government is excluding 60% of the UK work force. Smaller employers generally set pay on an individual basis and that is where inequality inadvertently creeps in.”
Mizzi adds, “The Government is walking a fine line between adding additional regulatory burdens and tackling a genuine problem. However, if the Government were serious about eliminating pay equality it would look at ways that all businesses can improve pay transparency.”