Pay Transparency Directive
The Pay Transparency Directive is big news. It will shift the dial on pay scrutiny across the EU. Businesses have a short window now to identify and remedy any key risk areas. One area of uncertainty and potential challenge is how to conduct an equal value analysis to comply with the PTD's requirements to categorise and report on gender pay gaps by reference to roles of equal value. This is not a like-for-like role comparison – for many businesses it will mean a new approach to valuing roles by reference to the demands of the role rather than simply looking at pay for those performing the same role.
Our data-driven solution – EVA
Using our market-leading experience of working in this area, we have developed the Equal Value Assessment (EVA). A solution that can be implemented in a cost-effective way, based on organisation size and risk appetite to conduct a standalone equal value analysis of the roles in your organisation, with a view to identifying the correct groups within which to identify and report on pay gaps. The tiered structure of our solution allows us to tailor our support to your organisation to ensure the right fit for your business, appetite for risk and approach to cost. With our solution you will be able to:
- Leverage our experience and know-how in conducting equal pay assessments together with our market-leading data analytics team.
- Access our bespoke online tool, delivering significant efficiencies for your organisation in scoring and analysing your jobs.
- Make use of our EVA solution in a way that suits your organisation, from access to the tool with standard guidance and spot checking only, to a fully bespoke scoring solution with detailed data analytics and reporting.
- Work with the B&M team’s expertise in scoring and assessing roles.
- Instantly escalate queries to Baker McKenzie lawyers through the platform to cut down email traffic and review effectively.
- Have a Baker McKenzie lawyer review the results and come up with a recommendations and remediation plan with you to help you prepare for the implementation of the PTD.
Background
- The right to equal pay for men and women doing equal work applies across the European Union with similar rights in the UK. In practice, it is often thought that the right applies where men and women do the same job, but it actually has a much wider application and also bites where roles are totally different but are considered to be of 'equal value’, which is more about how hard the jobs are.
- The concept of "equal value" has been considered in high profile cases in the UK courts. This has led to significant financial liabilities for employers where there is a difference in pay received by two comparable, but different roles which cannot be justified for reasons unrelated to sex.
- To date, there has been less focus on the concept of "work of equal value" in many EU member states but this is expected to change because of the measures required by the Pay Transparency Directive which are aimed at making it easier to bring equal pay claims. These include a requirement for employers to report material information relating to any gender pay gaps in respect of roles of equal value, and to remedy material pay gaps which cannot be explained by non-discriminatory reasons, potentially in conjunction with local employee representative bodies
What should employers be doing now?
We anticipate that the Directive will put equal value firmly on the radar and that EU member states will see equal pay litigation in the order of that seen in the UK. Ahead of the Directive, employers should be reviewing their pay structures and practices to identify areas of risk in respect of equal value.
How can we help?
Leveraging our internal equal pay expertise and data analytics know-how, we have developed a tool that clients can use for that exercise – EVA. We have drawn on our experience of equal value litigation in the UK as well as equal pay expertise from across our European network.