How Can You Put Your Pay and Benefits To The Age Test?

From 1 October 2006 when the UK implements the Age Discrimination legislation, it will become unlawful to discriminate against an employee or job applicant on the grounds of age. With less than two months to go, how well do you understand the impact on pay and benefits for your employees? Firstly, let's consider what is included and excluded in the new legislation from a pay and benefits perspective.

What's included in the Legislation?

• Pay and other cash payments e.g. bonuses
• Service related benefits over 5 years
• Benefits such as Medical insurances
• Statutory benefits such as holiday
• People beyond 'normal retirement age'

Just News

Wimbledon Tennis and Equal Pay: With the Tennis championships at Wimbledon just over, why did Amelie Mauresmo, the women's champion, earn nearly £30,000 less than Roger Federer, the men's champion? Could it be because women play three-set matches compared to the five played by men? As Wimbledon is one of the few tennis championships that does not award winners equally, the Government Culture Secretary Tessa Jowell has written to the event organizer, the All England Lawn Tennis Club to complain. In response, the Club said prizes were fixed each year and it would not change its stance.

International News:  On 1 July 2006, the minimum earnings level in France, known as SMIC, rose by just under 3% to 8.27 euros per hour. The monthly rate has therefore risen to 1,254.28 euros based on a 35-hour week. In the hotel and restaurants sector, the SMIC earnings level rose by an extra 291 euros to 1,545.00, to account for a regular 39-hour week.

Website of the Month

Each month, we’ll give a quick round up of a website or book. For July, have a look at www.bestcompanies.co.uk.

As the creators of the 'Sunday Times Best Companies to Work for' lists since 2001, this website covers the Best Companies list, how you can enter and the benefits of being listed.

The site tells you what you need to know about being externally recognised as a ‘best company to work for’. Winners and finalists report that the accreditation helps them to choose better candidates as well as motivating and retaining existing people.

The site contains worthwhile and informative content for HR and Reward specialists considering whether to enter the ‘Best Companies’ lists in 2007 or later. Take a look at the Research section of the site which explains the eight factors that employees consider to be part of their workplace experience including Fair Deal on Pay & Benefits.

Checklist on Age Legislation and Reward

Here are five things you can do to make sure that your reward schemes will meet the new legislation

• Review your policies – including your procedures and company literature for evidence of age bias or discrimination
• Review your practices – identify evidence of discrimination, such as pay increases based on 'non-justifiable' criteria
• Carry out an Age Audit – this is necessary for all HR aspects, not just reward. To receive a list of recommended websites that can guide you, click here
• Provide training – your managers who make reward decisions need to understand the implications, but ensure your employees are aware of them too
• Create an Action Plan – keep it simple with timelines. Remember to include performance assessments that impact pay.

Carry out these actions and you will be closer to meeting the reward requirements of the new age legislation. This advice is provided as guidance only. If you need specific, confidential advice relating to your business, please call us on 01367 710 618.

Who else do you know who would be interested in receiving this newsletter? Just Rewards is free and anyone can subscribe by clicking here.