(Solution) ICS Learn 5HR03 AC 3.4: Explain the Legislative Requirements that Impact Reward Practice

Solution

Organisations need legislation to define reward practises because it regulates fair treatment of employees in their compensation and benefits systems (CIPD, 2025) . British reward practises face two main legal influences which are composed of the Equality Act 2010 and the National Minimum Wage Act 1998.

Equality Act 2010

The Equality Act 2010 serves to stop workplace discrimination which arises from protected traits including age together with gender and race while also including disability and sexual orientation (ACAS, 2025). Organisations must avoid pay structure or benefit-based discrimination against employees because of their protected characteristics according to the Equality Act 2010.

The Equality Act establishes a mandate between men and women to earn equivalent pay whether they complete identical work or comparable tasks. Organisational pay audits have become mandatory under this act to maintain compliance standards while removing gender or other forms of pay discrimination from compensation structures. Organisations must show valid cause for employee pay or benefit disparities between positions which hold the same duties and they are required to resolve detected pay imbalances.

National Minimum Wage Act 1998

According to the National Minimum Wage Act 1998…….

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