?? EQUAL PAY ESSENTIALS | EQUITY FOR EVERYONE???

The concept of equal pay in the UK is evolving, and recent political promises may further expand its scope. Labour’s Employment Rights Bill and draft Equality (Race and Disability) Bill aim to address longstanding gaps in equal pay protections, focusing on intersectional groups, such as ethnic minorities and individuals with disabilities, who face compounding inequalities. However, while these proposals are significant, they may take time to reach the implementation stage.

Intersectionality and equal pay ????

Intersectionality recognises how different aspects of identity, such as race, gender, and disability, intersect and impact experiences of discrimination. Current UK equal pay legislation covers claims brought by members of the opposite sex, but gaps remain, especially for those who belong to more than one disadvantaged group. The proposed bills address this by planning to extend equal pay provisions to include race and disability.

When it comes to equal pay, an intersectional approach encourages employers to look beyond a single category, like sex and anticipates the changes that Labour may push through in the coming months or years. It’s crucial to understand how multiple aspects of an individual’s identity may contribute to pay disparities. ??

Reports consistently show that women from Black, Asian, and Ethnic Minority (BAME) backgrounds face a larger pay gap compared to their colleagues. This disparity is often driven by factors such as biased (unconscious or otherwise) recruitment practices, limited career advancement opportunities, and stereotyping. Disabled women, too, experience a disproportionate pay gap, facing higher unemployment rates and earning lower wages. Additionally, a lack of workplace accommodations can force employees with disabilities into lower-paying or part-time roles, further widening the income gap. ??

What is the Government proposing?

The Equality (Race and Disability) Bill aims to provide full rights to equal pay for ethnic minorities, address other racial inequalities and strengthen protection against dual discrimination ??.

Under the Employment Rights Bill, employers will also be required to publish ethnicity and disability pay gaps which will be a legal obligation for business with over 250 employees and this is an encouraging step forward to identify pay disparities. ??

What will these proposals mean in practice?

Under the UK's Equality Act 2010, equal pay claims are based on "like work," "work rated as equivalent," or "work of equal value," for members of the opposite sex. While there are specific protections addressing other protected characteristics (such as race and disability) through anti-discrimination provisions in the Equality Act, the framework is largely "single-axis" in its approach, addressing issues one dimension at a time rather than holistically. This means that current laws struggle to address pay discrimination that affects those who belong to multiple protected groups—e.g., a disabled woman of an ethnic minority.

It also means for anyone claiming equal pay as a discrimination based claim, the Employment Tribunal has no power or authority to order an employer who has broken the law to undertake a complete equal pay audit of their entire UK business. This can be a powerful motivator for employers to address equal pay issues before a claim by an employee forces the issue.

Furthermore, gender pay gap reporting regulations introduced in 2017 require large companies to report gender pay disparities, but they do not mandate similar reporting for race, disability, or other characteristics. Without this data, understanding the full scope of pay inequality remains challenging for employers and regulators alike. Although, recording and reporting that data accurately also presents significant challenges in and of itself.

How can employers address intersectionality and equal pay?

1?? Voluntary Pay Gap Reporting Employers can voluntarily report on pay gaps across race, disability, and other characteristics. This proactive approach not only signals a commitment to fairness but also provides valuable insights into where pay inequities may exist within the organisation.

2?? Inclusive Pay Audits Conduct regular, intersectional pay audits that consider various protected characteristics in combination. For example, an audit could review pay equity across different gender-race or gender-disability intersections. This data helps identify specific groups who may be experiencing compounded pay discrimination.

3?? Diverse Representation in Decision-Making Ensure diversity in leadership and decision-making roles related to pay and progression, including HR and executive boards. Diverse voices bring awareness to intersectional issues and provide insight into fair pay practices across various identity groups.

4?? Regular Training on Bias and Intersectionality Provide regular, robust training to all levels of staff on unconscious bias, including how intersectional identities can impact perceptions and decisions related to pay. HR professionals and managers can benefit from training focused on recognising and mitigating biases that affect different identity groups in nuanced ways.

Looking Ahead ??????

Labour’s proposed Employment Rights Bill promises to bring UK equal pay legislation closer to addressing the real-world complexities of workplace discrimination. However, true equity requires more than legislative reform—it demands a proactive commitment from employers to examine and rectify pay disparities across all dimensions of identity. By implementing voluntary reporting, intersectional pay audits, and inclusive practices, employers can ensure that "equal pay for equal work" truly means equity for everyone.

This evolution of equal pay is not just about compliance but about creating a workplace culture that genuinely values diversity, equity, and inclusion for all employees. ♀???♂?