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.
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