18 June 2010
Equality Act 2010 review announced into differential pay for
seafarers
The Equality Act 2010 (“Act”) is intended to provide a new
legislative framework to protect the rights of individuals and
promote equality for all; to update, simplify and strengthen
previous equality legislation; and to deliver a consolidated,
modern and accessible framework of discrimination law which
protects individuals from unlawful treatment. The bulk of the Act
is timetabled to come into force, in stages, over the course of the
next two years with a significant part of it being implemented in
October 2010.
First review of Equality Act 2010 announced
Speculation has grown in the media that this timetable may be
subject to delay by the new coalition Government as it reviews
parts of the Act which it does not support. The first review into
the Act has recently been announced in a Parliamentary statement.
It concerns the niche area of differential pay for seafarers.
Differential pay is standard practice across EU Member States and
internationally. Broadly speaking, it allows foreign seafarers to
be paid less than British or EU and EEA workers. (In this context,
the definition of foreign seafarers does not include British
nationals or seafarers from any EU or EEA state (or any other state
whose nationals are entitled to corresponding rights under EU law)
nor seafarers recruited in Great Britain.)
What part of the Act is being reviewed?
The previous Government's draft regulations showed they proposed to
apply part 5 of the Equality Act 2010 to seafarers. These
regulations did not deal with the practice of differential pay for
seafarers recruited abroad. This would have meant that the practice
of paying different pay for foreign seafarers recruited abroad, in
certain circumstances, would have become unlawful under the
Act.
The new coalition Government state that a reason for continuing to
allow the payment of differential rates to foreign seafarers is due
to the lower costs of living in the places where these seafarers
respectively habitually reside in comparison with the higher cost
of living for British and EU or EEA workers.
The report commissioned by the last Labour Government stated that
differential pay allowed shipping companies to “take advantage” and
pay very low rates to foreign workers. It stated that such pay
differentials in British workplaces were increasingly viewed as
unacceptable.
Request for assistance with coalition Government review of
differential pay
Seafarers, employers of seafarers and other
stakeholders likely to be affected by the final regulations are
requested by the current Government to consider the report on this
subject prepared by the previous Government and to give their
opinions on whether differential pay should be abolished. Copies of
the previous Government’s report is available
by clicking here.
Time limit
The review was announced on 9 June and the deadline
for responses is 23 June 2010. The address for submissions can be
found by clicking here.
Hill Dickinson has a wealth of experience in dealing with the full
range of marine, trade and energy issues. If you have any
queries relating to the above, or any other legal matter, please do
not hesitate to contact
us for advice.
