Businesses 'must understand new employment laws'

Nearly half (49 per cent) of employees have said that they would leave their current workplace if they found out that they were paid less than colleagues at the same level, according to new research.

PwC's survey of workers follows new legislation under the Equality Act which bans employers inserting 'gagging clauses' on pay in contracts.

Commenting on the findings, the head of HR Consulting at PwC Michael Rendell said: "Our poll of workers shows the importance individuals attach to the perceived 'fairness' of pay and the risk of losing good employees if these differences are not addressed."

He warned that the new Equality Act, which consolidates equality laws, could result in confused employers breaking the law.

Discrimination in the workplace could also come under scrutiny, as the banning of gagging clauses could highlight gender-related pay disparities.

In a separate report, PwC found that the cost of losing good staff for UK businesses amounts to £42 million annually.

  • Employment News from Lawpack: Expert employment law advice, template contracts and letters in Lawpack's Employment Law Made Easy.

Published on: October 5, 2010

Did you like this article? Share it!

Employment Law Made Easy

Employment law legal guide advert
  • Expert employment law advice
  • 'How to' information & instructions
  • Template contracts and letters
  • Written by employment law solicitor
Read More