The announcement, by equality Minister Harriet Harman has attracted a great deal of media interest in particular, the proposal to permit positive action which could mean for example, favouring female and ethnic minority job candidates of equal ability over a white man where there is under representation of those two groups.

The purpose of the Equality Bill is twofold. Firstly, to simplify the existing range of complex discrimination legislation by replacing 116 different pieces of equality legislation and 13 Codes of Practice by bringing them together into a single Bill. Secondly, to strengthen the measures in place to promote general equalities in employment. The key elements of the Bill are considered below.

Tackling discrimination in employment

Notwithstanding the introduction of equal pay legislation over 30 years ago, there continues to be entrenched pay differentials between men and women.  It is estimated that female part time workers still earn 40% less per hour than their full time male counterparts. In addition, a woman’s full time pay is on average 12.6% less per hour than a man’s. If you are from an ethnic minority you are 15.5% less likely to find work than if you are white and if you are disabled, you are two and a half times more likely to be out of work than a non disabled person.

One of the objectives of the Bill will be to require transparency which is considered to be essential in tackling discrimination. Accordingly, the Bill will outlaw pay secrecy clauses and make it unlawful to stop employees discussing their pay. In addition, public sector employers will need to publish clear information about their progress on equality issues. Significantly, it is intended to improve transparency in the private sector through public sector purchasing. The public sector spends £160 billion every year on purchasing goods and services from the private sector and it is estimated 30% of British companies are contracted by the public sector. Public bodies will be required to tackle discrimination and promote equality through their purchasing functions. For instance, some public bodies are already asking potential contractors what is the percentage of their staff are from ethnic communities. The government is looking into the appropriate measures to encourage public and private sector organisations to contribute to its equality targets. In addition, the government will work with the CBI, trade unions and others to gather evidence on the effectiveness of equal pay job evaluation audits.

Age discrimination

The age discrimination legislation in relation to employment was introduced in October 2006. The Bill will contain provisions to extend the scope of the legislation so that other forms of age-related prejudice can be tackled. In particular, age discrimination in the provision of goods and services such as health and financial services. For instance, upper limits for life assurance or higher premiums for older people are currently very common. Regarding medical treatment however, it is proposed that where there are sound clinical reasons for not providing treatment to a particular individual, this will still be allowed.

Positive action

This is the element of the Bill that has attracted the greatest interest and it is important to clarify what is proposed. Positive action means that all other things being equal, an organisation can take steps to recruit under represented groups to the organisation. Consequently, it will be able to choose a woman or member of an ethnic minority over a white man of equal ability (or vice versa) if it wanted to address the issue of under representation in its workforce. An employer would not be able to recruit or promote someone if that person was less suitable however. Organisations will not be compelled to use positive discrimination. Rather, it is proposed that positive action measures will be available to employers on a voluntary basis. The CBI, TUC and Equality and Human Rights Commission all support positive action.

New equality duty on the public sector

Currently, public bodies are under three separate equality duties: in respect of race, disability and gender. The Bill will contain a single equality duty and this will be extended to also cover gender reassignment, age, sexual orientation and religion or belief.

Strengthen enforcement

The Bill will allow Employment Tribunals to make wider recommendations in discrimination cases which could apply to (and therefore benefit) the workforce as a whole rather than as at present, the successful claimant only. This could be a very effective measure in tackling discrimination because around 70% of employees involved in discrimination cases leave their organisation which means that any recommendations have little impact in practice.

The government has indicated that the Bill will be passed into law in the next Parliamentary session and it will be publishing a detailed paper on the contents of the Bill shortly. We will keep you updated.