Our Employment team speak to the Times about why pay gap rules may not work.
Our employment team said, "The discounting of people employed by service companies could distort results for companies in sectors such as engineering, manufacturing and construction, which typically engage staff this way. It is something that the government will need to monitor closely, because it's possible that some employers may try to circumvent reporting obligations by engaging more staff through personal service companies.
"On top of such limits, what if employers fail to collect the information in the first place? A major criticism of the new regulations is the lack of civil or criminal penalty for noncompliance. The government indicated that failure to comply will be considered an 'unlawful act' and the Equality and Human Rights Commission [EHRC] can take enforcement action but this is perceived to be a bit of a halfhearted threat."
The full article is available online, first published by the Times on 13 April 2017: Why pay gap rules may not work
Please be aware that you must pay a subscription to the Times to read the full article.