This is an important power against discrimination in the workplace.

Employers found guilty of sex discrimination on pay by an employment tribunal will be forced to conduct a gender pay audit.  In a written statement to parliament, the Equalities Minister Lynne Featherstone revealed the move was part of the government’s response to the Modern Workplaces Consultation.

The Modern Workplaces Consultation was published on 16 May, 2011, and sought views on proposals to update employment law to encourage a more fair and flexible approach to work.  The consultation included questions on flexible parental leave, flexible working, working time and equal pay.

With regard to the equal pay aspect of the consultation, following analysis of the feedback the government has decided to proceed with the proposal to give employment tribunals power to impose pay audits on employers who are found to have discriminated because of sex in contractual or non-contractual pay matters.

These proposals will mean an employment tribunal that finds that an employer has discriminated on grounds of sex in contractual or non-contractual pay will be obliged to order the employer to conduct a pay audit where it considers there may be continuing or likely discrimination, unless an audit has been completed in the last three years, the employer has transparent pay practices or the employer can show a good reason why it would not be useful. Micro businesses (those with fewer than ten employees) will initially be exempt from the proposals. Whilst the number of cases expected per year is very low this is an important power and will contribute to the government’s commitment to promote equal pay and to act against discrimination in the workplace.