How to ensure peer review salary setting doesn’t fall foul of the law


27th January 2020

Ian Jones has written an article on how to ensure peer review salary setting is legal in an article that was first published in People Management on 21 January 2020.

Most employment contracts provide that an employee’s salary will be reviewed annually by their employer or that a collective bargaining process will be entered into with unions or employee representatives. However, some employers have taken a different approach, allowing employees to set their own salaries within certain parameters. This novel idea has been adopted by some progressive, predominantly smaller, businesses looking to attract and retain top talent and differentiate themselves from competitors.

From a legal perspective, the sharing of salary details among staff could be a positive step towards pay transparency and, properly implemented, might help avoid or eradicate any pay gap based on gender or other impermissible factors. However, there is a risk pay inequality might arise inadvertently. Ian Jones, Senior Associate in our Employment law team, discusses the concept and its legal implications. Click here to read the full article in People Management.

Enjoy That? You Might Like These:


articles

29 April -
The recent Court of Appeal case of Sullivan v Isle of Wight Council has confirmed that external job applicants, other than those making applications within the NHS, do not have... Read More

articles

24 April -
Recently for many UK Defined Benefit (“DB”) schemes, stellar scheme funding performance has led to Government pressure to allow corporate sponsors to more easily access surplus funding in their schemes.... Read More

articles

23 April -
The Employment Rights Bill was published on 10 October 2024 and it has hardly been out of the headlines since. Six months on, the Government has made significant amendments to... Read More