10-12-2012, 01:08 PM
Equal Remuneration Act
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INTRODUCTION
The purpose of the act is to make sure that employers do not discriminate on the basis
of gender, in matters of wage fixing, transfers, training and promotion. It provides for
payment of equal remuneration to men and women workers, for same work or work
of similar nature and for the prevention of discrimination against women in the
matters of employment.
Discrimination is nothing more than the expression of a preference. In this neutral
sense, without assessing either the consequences of such behaviour, or the “social
justice” aspect, the right to discriminate is a desirable feature of any free society.
Individual acts of choice may sometimes result in a preference that might exclude or
inconvenience a certain group. However, how valid or just is it to make such a choice
illegal? Even more significant, how many profit-maximising, and efficiency--
enhancing entrepreneurs would make such a choice?
Except in rare circumstance, people’s preferences are not absolute, but vary depending
on other factors, main among them being the cost, or benefit of making such a choice.
Under normal circumstances, the higher the cost (the lower the benefit), the less likely
the choice will be made. Discrimination has a price, and the existence of this price will
limit the existence of discrimination prevalent in the market.
Prohibition of discrimination during recruitment
Section 5 of the Equal Remuneration Act specifically forbids employers from
discriminating against women during recruitment. It states:
On and from the commencement of this Act, no employer shall, while making
recruitment for the same work or work of a similar nature, or in any condition
of service subsequent to recruitment such as promotions, training or transfer,
make any discrimination against women.
Prohibition of discrimination during wage fixing
The Equal Remuneration Act also seeks to address the issue of payment of unequal
wages to men and women. It makes it compulsory for employers to pay women wages
equal to those paid to men for performance of the same work. Section 4(1) states:
No employer shall pay to any worker, employed by him in an establishment
or employment, remuneration, whether payable in cash or in kind, at rates less
favourable than those at which remuneration is paid by him to the workers of
the opposite sex in such establishment or employment for performing the
same work or work of a similar nature.
The injurious nature of the act with respect to entrepreneurs
Consider the situation in light of the numerous labour laws that make it very difficult
to fire any worker. An employer who hires a woman must pay her equal wages as the
male worker although, she may prove to be less efficient. Furthermore, he may not
decrease the male worker’s wages to fulfil this condition. Given that following such a
policy might later prove to be harmful and bankrupting to the employer, one might
expect him to be reluctant to hire a woman in the first place. However, the law
prevents him from doing that too!! In the attempt to protect women workers from
some perceived injustice, the act is exploiting the entrepreneur who is simply trying to
run an honest business.