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:


newsletters

4 February
Welcome to our Winter edition of the newsletter. As can be seen from our recent Looking ahead to 2026 there is no let-up in the pace of employment law developments.... Read More

articles

29 January
In a recent judgment, the Court of Appeal have confirmed that Coastguard Rescue Officers (“CROs”) who attend emergency call outs for the Maritime and Coastguard Agency (“MCA”) are workers rather... Read More

articles

22 January
Women represented by the GMB Union, have secured more than £1 billion in settlements following long‑running campaigns addressing systemic pay inequalities in female‑dominated roles across UK local authorities. These cases... Read More