Fair pay warning as website scrutinises salaries

NEWS that an international website is about to add British salaries to its searchable database is a further reminder to employers to ensure workers are paid fairly.

Glassdoor.com, set up in the United States two months ago, displays how much companies pay individuals. The salary entries, along with company reviews, are provided anonymously by current and former employees and vetted for accuracy.

And according to employment lawyers, imminent plans to add the wages of British workers to the site could catch some employers out.

Simon Ost, an employment partner at Hammonds in Manchester, said: “With equal pay claims on the rise and unions increasingly championing this issue, employers should already be putting measures in place to tackle pay gaps amongst employees.”
 
“The launch of a website where employees can log on and find out what a colleague in a similar role is earning only increases the urgency with which employers should review the pay rates that they’re offering.”

The push towards wage transparency reflects the government’s plans under the Equality Bill. One of the key purposes of the Bill will be to outlaw gagging clauses which prevent employees from discussing their pay. 

Mr Ost added: “Discussing salaries is currently one of the biggest taboos of the British workplace so moves to bring this out in the open are likely to remain at the forefront of employees’ minds.  As a result there’s a real danger that employers could get caught out by a rise in equal pay claims.” 

“The key defence against equal pay claims is for HR teams to ensure they have a robust job structure in place that is linked to pay rates/bands that are tested against the market.  Employers would be wise to ensure their houses are in order now in case the publication of workers’ salaries on the web casts an unwelcome spotlight on the way comparable employees are paid.”