Legal updates and opinions
News / News
Salary discrimination not automatically unfair
Unfair discrimination on the basis of an inequality in pay – between male and female staff, or staff of different ethnic or racial groups or any other arbitrary ground – is unlawful in terms of the Employment Equity Act.
But the opposite position – that there can be fair discrimination – also applies.
Even if there is a difference between pay or terms and conditions (which legally would be recognised as the employer discriminating between an employer and another, comparator employee), this discrimination may not always be unfair and a conclusion of inequality cannot automatically be drawn.
Certainly, if an employee complained of pay discrimination and was female for example, and otherwise of the same status, seniority, experience level and educational qualification as a comparator male employee, the reason for the difference may be solely the fact that she is female.
This would be unfair discrimination, due to pay inequality, where the employees being compared perform the same work. However, the Employment Equity Act recognises all (and more) of the above factors, such as status, seniority, experience level and educational qualification, as fair reasons to justify the difference. Even though there may be a difference, it is not due to the first employee’s gender, and is therefore not unfair.
An additional factor that the Labour Court has recently taken into account, in determining whether a difference between a male and female employee is fair or unfair, is the “market forces defence.”
This position takes into account that one employee (in this case a male), had more years of service and seniority and a higher Private Security Industry Regulatory Authority (PSIRA) grade (relevant for the employer in this case).
The court recognised that he could command a higher salary due to these factors, and that the employer had paid him more than another female employee in a similar position because he asked for a higher salary based on his market value. The difference was found to be not unfair. Employers must be aware that this sensitive issue must be assessed on each case, and the mere fact that a difference exists, does not mean it is unfair.
Latest News
Tightening up on the offshore trust rules
The general principle is that South African resident individuals who have settled offshore trusts are taxed on the income and [...]
Probono@Werks
WILLS WEEK - 2018 ProBono.Org hosted a Wills Week from 23 to 27 July 2018. Lawyers from various firms in [...]
South Africa: trade marks as valuable assets to raise funding
By Janine Hollesen and Donvay Wegierski, Directors The registration of trade marks has numerous advantages one of which is that [...]
Labour bills sent for assent
By Jacques Van Wyk, Director and Yusha Davidson, Candidate Attorney The National Minimum Wage Bill, the Basic Conditions of Employment [...]
Can you dismiss an employee for making racist comments in the workplace, which the employee believes to be friendly and inoffensive according to the employee’s culture?
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Is the dismissal of an employee, who compares a [...]
Non-standard forms of work and the gig economy
By Bradley Workman-Davies, Director and Megan Livingstone, Candidate Attorney South African labour law creates extensive rights and protections for employees, [...]
