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
Stay out of my internal disciplinary matters? Not so fast
by Bradley Workman-Davies, Director and Anna Tchalov, Candidate Attorney In terms of the Labour Relations Act, 66 or 1995 (LRA) [...]
Fairly unlawful or lawfully unfair? Employees and their rights on termination under the LRA and contract
The South African Labour Relations act, 66 of 1995 (LRA) has been in operation and has since the date of [...]
The transferability and enforceability of restraint of trade agreements
Issue Where a business is sold as a going concern do the restraint of trade undertakings contained in employees' contracts [...]
Employees beware: the enforceability of zero-tolerance policies in the workplace
Issues Whether an employee may be dismissed, in the workplace, for testing positive for dagga and the importance of 'zero-tolerance' [...]
Fresh Produce Market Inquiry: What is it all about? Apples, pears, grapes, avocados, tomatoes, onions and more
The Competition Commission (Commission) is set to conduct a market inquiry into the fresh produce market of South Africa (Fresh [...]
Two pots of gold: What you should know about the “two-pot” retirement system
The proposed "two-pot" retirement system would allow people to have the best of both worlds - early access to a [...]