Currently, the Equality Bill, due to come into force in the Autumn of 2010, has measures to force employers to report on the closing of the gender pay gap if they do not do so voluntarily. Yesterday the Equality Bill reached report stage in Parliament.
Amanda Jones, Partner in the employment team at Maclay Murray & Spens LLP, said: "It is no surprise that Westminster MPs have voted down Lynne Featherstone's proposals.
"Indeed, it remains to be seen whether the proposals for mandatory equal pay audits even make it into the final version of the Equality Bill, which will become law. Our parliamentarians are in something of a race against time to get the Bill finalised before dissolution of Parliament in time for a General Election. Some degree of horse-trading is likely, particularly during the Bill's passage through the Lords, and certain aspects may fall due to a lack of support from the Conservative benches - those on audits among them.
"Even if the provisions remain in the Bill, should the Conservative party win power at the next General Election, it remains doubtful whether the power to make regulations to introduce mandatory equal pay audits will be exercised."
