Employment contracts under The Equality Act
The Government has confirmed that employment contracts will no longer be able to contain clauses which prevent workers from talking about their pay and bonuses.
This change is set to come about under the new Equality Act. The initial implementation of the main provisions of the Equality Act is set to go ahead on 1 October 2010.
Home Secretary and Minister for Women Theresa May said: “As a Government we are taking action to tackle discrimination faced by women in all workplaces and at all levels, from City bankers to hospital cleaners.
“From October 2010 the Equality Act will make pay ‘gagging’ clauses unenforceable so that companies will no longer be able to stop employees comparing their salaries with colleagues. Bringing an end to the culture of pay secrecy will make it easier for women to find out if they are being paid less than men.”
As an employer, have you incorporated such clauses in your employee’s contracts of employment? Is this change in legislation only going to have a real impact for City workers?
