2 Nov -  The proposed Employment (Pay Equity and Equal Pay) Bill looks set to become law in the coming months. Max Whitehead, Managing Director of Whitehead Group, says that despite the Bill’s best intentions, it is practically inevitable that the Bill will place unbearable strain on some employers, especially small employers.

“The consequences of this could be a large shift in the workforce away from employees to contractors and will likely result in fewer jobs being available overall,” says Mr Whitehead. “There is also a chance for exponential inflation as the “wage envy revolution” gains momentum.”

Mr Whitehead says the Bill also runs the risk of encouraging men into a preferential position as the legislation brings with it much risk for employers, but only if the employee is female.
“Our advice to employers is to brace themselves for soaring wages and ensure that they have legal advice ready for when this legislation takes hold and the floodgates open. Claims for backpay can extend up to six years, a burden many won’t be able to bear.”

Mr Whitehead expects a range of claims under this legislation in all sectors before precedent is established. “For those in higher earning brackets, we say get ready for extensive bargaining and make sure that when the increased salary wave hits you are ready to ride it.”

| A Whitehead Group release  ||  November 2,  2017   |||