PAY - 08.09.2010

One-in-six would read a confidential payslip

Take a peek. According to a recent survey by the Institute of Payroll Professionals (IPP), 15% of employees would read a colleague’s payslip to discover what they earn (provided they were confident nobody would catch them). In addition, the IPP found that 18% openly discuss their salary with colleagues and 53% talk about it to family and friends.

Banned clause. Many employers discourage staff from discussing pay; some even place confidentiality clauses in employment contracts to stop such discussions taking place. However, this practice will be prohibited from October 1 2010 when the Equality Act 2010 comes into force. As it aims to promote equality and fairness in the workplace, it will ban this type of gagging clause altogether. Those that are already in existence will become unenforceable.

Tip. To help employers prepare for the Equality Act,ACAS has produced new guidance on the legislation, “The Equality Act - What’s new for employers?”, which outlines all the relevant changes. It can be downloaded free of charge from its website.

For a link to ACAS’ free guidance on the Equality Act 2010, visit http://personnel.indicator.co.uk(PS 12.16.08).

Given the chance, 15% of employees would read a colleague’s payslip to see what they earn. From October 1, the Equality Act 2010 will ban salary confidentiality clauses - so they’ll be able to discuss pay openly.

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