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Equal Pay Audits – Regulations Published

The Government has published the Draft Equality Act 2010 (Equal Pay Audits) Regulations 2014, which are intended to apply to Employment Tribunal (ET) claims presented on or after 1 October 2014 where the employer is found to have breached the equal pay provisions of the Equality Act 2010.

The Regulations set out the circumstances in which the ET must order the employer to carry out an equal pay audit, the required content of an audit and the timetable for ensuring compliance with the order.

Where an audit is ordered, the gender pay information it contains will normally be required to be published, on the employer’s website where possible, for a period of at least three years.

There is an exemption from the Regulations for existing micro-businesses (i.e. those with fewer than ten employees) and new businesses (i.e. brand new businesses started in the twelve-month period before the ET claim was made).

Failure to comply with an order may result in a penalty not exceeding £5,000, with possible additional penalties for employers who fail to pay the fine.