The new Equality Act came into force on 1 October 2010 targeting discrimination across a range of issues such as pay, disability and age. It consolidates 9 pieces of legislation into one act, so could be described as a tidying up exercise.
Having researched the changes, there are some significant ones which could have an impact on the North West hotel sector employers and their staff.
As a hotel owner I think it would be fair if you were a little put out by having to get to grips with another set of rules, in fact the government has suggested that the total cost to businesses in the UK of simply understanding the new legislation will be £189.2m!
I think it is important to get up to speed quickly though, so as to avoid any unnecessary claims from your employees.
There have been many changes, but the ones I think will most affect Lancashire’s hoteliers are:
Secrecy clauses - it is no longer lawful to prevent discussions regarding pay inequality. Beware! This may create an increase in equal pay claims.
Harassment - you will now be liable for the harassment of your employees not only by colleagues but by third parties such as contractors and hotel guests. However, as long as you take reasonable steps to prevent harassment occurring, you should be OK.
Health questions - as an employer, you are not allowed to ask about the health of potential employees before offering them a job.
So, what should you do now?
- Review your existing policies and procedures and ensure they are clearly and effectively communicated to all managers.
- Ensure you have Employment Practices Liability insurance which in my experience is more widely available and cheaper than it used to be. It should cover any payouts for claims made against you.
- Update your contracts of employment, if required
Obviously this blog is only a quick summary of the new Equality Act, but I hope you found it useful.
If you are an hotelier in Lancashire, Ashworth Treasure accountants are keen to become your business partner rather than just your accountant.