Are you willing to risk 10% of your turnover because you didn't follow these five steps?
We've covered the Employment Equity Act (EEA) Regulations about equal work for equal pay quite extensively in the Labour Bulletin... And what they mean.
Today, I want to give you five steps you can follow to make sure you're following these regulations. And avoid paying up to R2.7 million or 10% of your turnover!
But first… A quick recap on equal work for equal pay and what it means
It means you must give employees who do the same or similar work the same terms and conditions of employment.
Let's look at four questions you need to ask yourself to see if the work is the same or similar.
Be warned! The Labour Relations Amendment Act changes the way you treat fixed-term and temporary employees!
If you use fixed–term contracts in your workplace, you need to make sure they're in line with the new Labour Relations Amendment Act which came into effect on 1 April 2015.
If you don't know how to implement and manage fixed-term and temporary contracts you could land up with an unfair labour practice case on your hands!
Four key assessment criteria to check equal pay for work of equal value
To check if you're applying the equal pay for work of equal value rule, ask yourself these four questions:
1. Are you comparing jobs that are the same, substantially the same or of equal value?
2. Is your assessment objective?
3. Is there a difference in terms and conditions of employment? Include the remuneration in the jobs you're comparing.
4. If there are differences, can you justify them on fair and rational grounds?
Now let's look at the ways to evaluate work of equal value…
Use these methods to make sure you donʼt unfairly discriminate in terms of pay
To assess if you're paying equal pay for equal work, you can either use a job evaluation or job grading system.
There are formal evaluation and grading systems available, but you don't have to use them. The EEA Regulations understand not all companies can afford these systems. But it does give key descriptors for each occupational level.
So if you're not using a formal system, use the steps below to evaluate and grade jobs.
With over 70 changes made to the BCEA, EEA and Labour Relations Act in 2014... As YOU read this...
Your company could be hurtling towards a CRIPPLING LABOUR DISPUTE!
Five steps to informally evaluate and grade jobs
Step 1: Classify jobs into an occupational category in line with the EEA9.
Step 2: Evaluate jobs in each category. Look at those in the Code of Good Practice for job evaluation.
Step 3: Compare the remuneration and terms and conditions for jobs of the same value. Find out if any of the factors in table are relevant to any of the differences you find.
Step 4: Develop a strategy to correct unfair differentials. For example, temporary increases, additional increases, job scope changes, increase responsibility, etc.
Step 5: Implement your strategy developed in step 4. This will make sure you pay equally for jobs of equal value. And if you aren't, you can prove the pay differences are fair.
There you have it. The five steps that could help you avoid a massive fine!