Draft Code of Good Practice on Equal Pay for Work of Equal Value

1. 3 March 2015 Presented by: Lionel van Schalkwijk PE Corporate Services SA (Pty) Ltd Tel: 031 700 1597 Draft Code of Good Practice on Equal Pay for Work of Equal Value

2. Equal Pay for Work of Equal Value The National Senior Commissioner at the CCMA was quoted • Unequal pay for equal work constitutes unfair discrimination and is prohibited in terms of the amended Employment Equity (EE) Act • Every employer must take steps to eliminate discrimination in the workplace by ending unfair practices such as paying employees disproportionately for the same work

3. Equal Pay for Work of Equal Value Draft Code of Good Practice on Equal Pay for Work of Equal Value • Government notice Gazetted 29 September 2014 • Written comments / submissions were requested by the end of October 2014

4. Equal Pay for Work of Equal Value Objective Code seeks to promote remuneration equity in the workplace by providing practical guidance on how to apply the principle of equal remuneration for work of equal value.

5. Equal Pay for Work of Equal Value • Eliminate Unfair Discrimination in respect of Remuneration • An employer must take steps to eliminate differences in terms and conditions of employment, including remuneration – emphasis on identifying differences based on historical reasons. remuneration

6. Equal Pay for Work of Equal Value • Three key considerations when considering remuneration equity • Are the jobs that are being compared the same, substantially the same or of equal value ito an objective assessment? – Job Evaluation • Is there a difference in the terms and conditions of employment, including remuneration. • If there are differences in the terms and conditions of employment, can these be justified on fair and rational grounds?  Job Evaluation

7. Summary of Job Evaluation Process Scope of audit Job worth Hierarchy (Grade Map) Job Analysis & Job Description Job Grading The process of examining and documenting the content of a job, breaking it down into tasks, functions, minor functions, work methods, processes, operations and elements. Document the job analysis by writing job descriptions/profiles The ranking of levels of jobs or job worth hierarchy using a job grading system The final result of the job grading process. Illustrates where each job fits relative to other jobs.

8. Grade Map

9. Job Evaluation Process Job worth Hierarchy (Grade Map) Stage two After the Job Worth Hierarchy is built, a Company Salary Structure is created and used as a framework for pay decisions Company Salary Structure

10. Salary Ranges by Grade

11. Linking Grades to Market Salary Structure

12. Salary scales A typical Grade overlap is 10% to 30% External Competitiveness (Stage 2) 1 2 3 4 5 6 7 8 Internal Equity (Stage 1)

13. Equity Analysis

14. Questions