The Minister of Labour has issued a code of good practice which regulates remuneration for work of equal value.
The code’s application extends to all employers and employees covered by the Employment Equity Act and compels employers to take steps to eliminate differences in terms and conditions of employment, including the payment terms of those employees who perform the same or substantially the same work or work of equal value.
The code sets out three key issues which require scrutiny when examining whether the obligation to apply remuneration equity is applicable:
1. Are the jobs that are being objectively compared the same or substantially so?
2. Is there a difference in the terms and conditions of employment, including payment?
3. Are the differences justifiable?