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Benefits
Legal requirements
Benefits
The way in which pay is structured is a powerful communicator of values to both the local community and internal employees. When choosing a pay structure consider what aspects of organisational performance this will influence. There are the following benefits:
- Promotes transparency, fairness and gender equality.
- Encourages flexible and cross organisational working and team partnership.
- Utilises a reward system that recognises individual, tam or organisational performance, loyalty, the achievement of relevant experience and important skills and accountability.
- Affordable to introduce and retain.
- Responsive to market pay rates.
Legal Requirements
The law affects many aspects of pay and it's not possible to list them all, but you must:
- Pay employees in accordance with their contract of employment
- Pay men and women equally for doing like work or work of equal value
- Not make deductions from wages without prior written agreement unless required or authorised by the employees' contracts or by law (e.g. National Insurance contributions).
- Pay as fitting: statutory sick pay, statutory maternity pay, pay for lay-offs, pay for medical or maternity suspension.
- Ensure you meet the requirements of the Minimum Wage legislation.
As well as meeting the legal requirements, there are business reasons for implementing equal pay. Pay systems that are transparent and value the whole workforce, send encouraging communication about an organisation's values and ways of working.
Fair and non-discriminatory systems represent good management practise and contribute to the proficient accomplishment of business objectives by encouraging the utmost productivity from all the staff.
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