Background

The Government Equalities Office, after an extensive consultation period, have now published the single Equality Bill. The focus will be on non-legislative means of promoting diversity through using procurement mechanisms and positive action. REC are not lobbying directly on this issue although we are feeding into the CBI’s position through their Equality
and Diversity Forum. We have also had discussions with senior officials at the Government Equalities Office and have submitted a position paper to them at the end of 2008 highlighting the interests of the temporary staffing market. Now the Bill is published, we will be clarifying how this works for the industry and highlighting the important role recruiterscan play in educating their clients on the changes.

What the Bill says

Simplifying the law
The Bill is set to simplify and clarify some of the complex raft of discrimination legislation into a single Act which will make it easier for recruiters and employers to understand. It proposes combining the 9 pieces of major legislation and 100 statutory instruments relating to diversity into a single Equality Bill. Therefore it should simplify and clarify discriminationlaw for employers and recruiters.

New Equality Duties
Public bodies currently have to consider and promote race, gender and disability in their recruitment processes, know as equality duties. These three duties will brought together into a single duty that will include age, sexual orientation, religion and belief, pregnancy and maternity and gender reassignment. There will also be a duty to reduce socio-economic
inequalities.

Promote equality through procurement mechanisms
The Bill proposes to strengthen how the equality duties are dealt with in the procurement process within the public sector. The proposals to strengthen the equality duties will mean that recruiters who supply into the public sector will need to be able to demonstrate that they can support the diversity requirements of their clients. For more information on how
recruiters can get the tools to do this go to www.rec.uk.com/diversity.
REC’s view is that using procurement mechanisms to deliver diversity and equality needs careful consideration. The Government Equalities Office has suggested developing a “kite mark” to demonstrate the diversity credentials of suppliers to the public sector which could be used by recruiters to bypass the first stage of the tendering process. REC has concerns as to how this is going to work on the ground as such a kitemark is likely to involve a cost and could increase the difficulties SMEs face in gaining access to public sector contracts. It is important that existing initiatives such as the REC’s Diversity Assured continues to be recognised as a sign of good diversity practice. REC will work with its partner Birmingham Professional Divercity on this matter.

Steps to extend positive action
The Bill proposes to extend positive action so that it would be made explicitly possible to pick a candidate from an under-represented group if the other candidate(s) were equally suitable. This would not allow positive discrimination, where candidates from under represented groups are picked over those who are more suitable. REC will press for clear
guidance on this matter so employers are aware of the boundaries.Employers may need a helping hand through complex issues such as the extension of positive action and the recruitment industry is in a position to help educate and inform.

Report gender pay gaps
There will be a requirement on the private sector to voluntarily report gender pay gaps if the business has over 250 employees. From 2013 there will be a power for the Government to force the private sector to comply. REC’s position is that gender reporting does not always address the real problems if the figures are taken out of context. There are some sectors that have been traditionally dominated by men, such as engineering, which are now taking positive steps to diversify their workforce by encouraging more women to enter the profession. However, since they will be on junior pay scales, the difference in gender pay will be misleading. The Government needs to recognise that diversifying workforces takes time. REC will follow up whether this matter would affect temping agencies with more than 250 staff being supplied.

Banning secrecy clauses on pay
This could affect how rates and positions are negotiated - particularly for higher end permanent positions. The banning of secrecy clauses could make it easier to establish equal treatment under the terms of the agency workers directive.

Strengthening the powers of Employment Tribunals
The Bill proposes that Employment Tribunals can make recommendations which benefit the whole workforce - not just those who are affected by the claim.