Right to ask about colleagues' pay coming soon
Emma Burrows, Partner and Head of Employment at law firm Trower & Hamlins, said that the Equal Pay Questionnaire will give complainants the right to ask employers about their pay compared to members of the opposite sex. If an employer refuses to comment, it may count against them in an employment tribunal.
The Equal Pay Questionnaire is part of the Employment Bill, which is due to come into force in April 2003. The bill is currently open to consultation.
Burrows said that if the bill goes through, as seems likely, the effects could be revolutionary. In order to justify pay disparities, bonus allocation would need to be entirely transparent and based upon objective criteria.
"This is a large chance for companies to tighten up their equal opportunity policies and ensure that their payment of bonuses is carried out in a fair and transparent manner. Otherwise, they may be the next City institution in line for a very public airing of their payment policies, internal politics and a whole lot more," warned Ms Burrows.
The bill comes on the back of a spate of recent discrimination cases. In June, Louise Barton, a top ranking media analyst, sued her employer Investec Henderson Crosthwaite, when it emerged that her pay was half that of a male colleague. In January, Julie Bower , a senior analyst at Schroder Securities was awarded 1.4 million when a court found that she had been constructively dismissed following the payment of a relatively meager 25,000 bonus.
At that time, Julie Mellor, chair of the Equal Opportunities Commission said that women's pay in the banking and finance was only 55% of men's average earnings.
Emma Burrows warned that giving women the right to ask if they are paid the same as their male counterparts will lead to more discrimination cases.
Another employment lawyer, Maya Cronley-Dillon at Lovells, gave reason to think things will not be so bad, however. "Employers will have room for manoeuvre. If the information being asked for is excessive, or if there is no differential, the employer will have reasonable grounds to refuse the request", she said.
