A HAMPSHIRE-BASED law firm is advising companies to fully comply with equal pay rules as new legislation is introduced that could require mandatory pay inspections.
Employment law expert James Humphery from Southampton firm Trethowans said employment tribunals are set to have the power to order companies to conduct equal pay audits – or risk large fines.
The changes are part of The Enterprise and Regulatory Reform Act and James said the audits will be ordered where companies have breached the equal pay provisions under the Equality Act.
He said that most companies which are found to have breached the Equality Act will have to carry out detailed pay audits, have them approved by the employment tribunal then publish them on their websites – and leave them there for three years.
There will also be fines of up to £5,000 for non-compliance.
“Equal pay has been in the spotlight recently and the introduction of this new power for employment tribunals is a timely reminder for companies to ensure they comply with the law,’’ Mr Humphery said.
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