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Avoid unfair discrimination regarding remuneration differences with these 6 factors

by , 29 February 2016
If you have some employees who do work of equal value, but have a difference in remuneration to other employees, who do similar work, then it could be seen as unfair discrimination.

BUT if the differences are based on differences in their terms and conditions of employment, then it isn't necessarily unfair discrimination.

If any of (or a combination of) the following 6 factors are the reason behind the differences in your contracts' terms and conditions, ESPECIALLY concerning remuneration, then you're immune to unfair discrimination...

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The difference is based on employees' seniority or length of service.


The difference is based on employees' qualifications, skills, competency or abilities which are above the minimum required levels to perform the job.


The difference is based on employees' performance, quantity or quality of work.

This is of course only justifiable if all are equally evaluated according to your performance standards. In other words, you must apply your performance evaluation CONSISTNTLY among all employees concerned.

If you fail to do this, this factor doesn't count.


Where you demote an employee for any legitimate reason (such as organisational restructuring) without a reduction in pay, and you've fixed her salary at this level until other employees in the same job reach the same remuneration level.


Where you employ your staff TEMPORARILY in a particular position for training purposes, and as a result they get different remuneration or get different terms and conditions of employment.


The existence of a shortage of a relevant skill, or the market value within a particular job classification.

*So those were 6 factors that justify differences in employment contracts, and in so doing avoid unfair discrimination when it comes to different pay for equal work.

To avoid being guilty of unfair discrimination, page over to chapter E 27 in your Practical Guide to Human Resources Management handbook and read more.

Alternatively, click here if you don't already have it. 

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