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9 October 2010 - Tendering for UK Contracts? What's New Under The Equality Act?

New UK equality legislation kicks in this month (October) under the Equality Act 2010 which means that if you are a private sector company tendering for UK contacts and services, you may need to review your equality policies and practices to ensure they meet new legislation.

The aim of the new act is to modernise and streamline the legislative framework for equality and diversity, making it more accessible and promoting a more equal society. The new legislation is relevant to both public sector bodies and the private sector, especially private sector companies doing public sector tenders and delivering public sector contracts.

The Equality Act replaces previous legislation, including the Equal Pay Act 1970 and the Sex Discrimination Act 1975, and the equality provisions in the Pensions Act 1995.

Secrecy over pay levels no longer enforceable
Under the new act companies will no longer be able to enforce secrecy clauses stopping employees from discussing pay packages and what others in the workforce are paid.

Gender pay audits may be on the cards for larger employers
The Act includes mandatory Gender Pay Audits for employers with 250 or more employees from 2013, but whether this is enforced will depend on the current government. Larger companies seeking to bid for and deliver public sector contacts would be well advised to ensure their HR and equality policies maintain best practice by for example including regular pay audits, to demonstrate transparency in wage levels and pay systems that deliver gender equality.

Exceptions relating to ‘equal pay’
There are three exceptions relating to pay levels. Young people between 16 and 21 can be on a different pay band to other workers, it is permissible to pay more for staff that have longer length of service and people who are married or in civil partnerships may be treated better than other workers!

Implications for private sector businesses carrying out public functions
The codes of practice on goods and services are still to be published so things may change, but currently there is no clarity on the expectations on private businesses that are carrying out a public function covered by the Public Sector Equality Duty.
 
Implication for process linked to tendering for UK contracts
Indications are that there will not be any further burdens put on companies that tender for public sector contracts but this does not mean that they will not need to review their equality policies. It is not necessarily good news, as it gives scope for pubic sector procurement agencies to build in equalities work as they see fit, leaving much potential for a range of different requirements to develop to ensure The Equalities Act is being met. For suppliers dealing with a number of agencies this may add more complexity and costs to their public sector procurement processes.

Information in this article is based on a briefing provided by Diversity Works For London – to see their full briefing on the Implications of the Equality Act for private sector businesses follow this link.

See also: ACAS The Equality Act What’s New for Employers

Written by Linda Eziquiel, Director, BusinessTalent – Specialists in helping small businesses tender for and win public sector contracts