Harman vows to force through 'true equality' in the workplace, as bosses call plan 'a nightmare'

Harriet Harman's proposed Bill to enforce equality in the workplace will be a 'a bureaucratic nightmare', business leaders warned last night.

They said making bosses audit pay to assess the gap between male and female staff will be costly and put them at risk of legal challenges from women who do not think they are paid enough.

The Equality Bill, which was unveiled yesterday, will also make it legal for the first time to promote a woman or a black person over a white man if they are equally able.

Critics said the law would effectively reintroduce discrimination to the workplace by allowing people to be chosen purely by their race or gender.

David Frost, of the British Chambers of Commerce, said: 'This could end up being a bureaucratic nightmare. The intention was to simplify the law. Increasing the complexity of tendering for public contracts and putting more emphasis on positive action is unlikely to make life simpler.'

But Miss Harman said: 'There might be controversy, but you don't get progress if there isn't a push forward. Women will be able to see they are paid less than men and they will be able to complain and challenge it.

'Entrenched discrimination is allowed to persist. It's the British thing of not talking about pay.'

Harriet Harman stands behind Deputy Speaker Sir Alan Haselhurst in the House of Commons

Euro-MP Godfrey Bloom, of the UK Independence Party, called the move 'legislation which will add to the unbelievable burden on small business', adding: 'They should be deregulating, not continually interfering.'

The Chartered Institute of Personnel and Development said: 'Positive discrimination is illegal. Employers will have to have evidence of what they're doing and why.'

Lawyer Robin Jeffcoat warned the Bill would have to be worded to stop unsuccessful job applicants from claiming they should have been hired to boost the numbers of under-represented staff of their race or gender.

Tory MP Philip Davies said: 'How can you justify in an Equality Bill having something that allows people to be selected solely on their colour or gender? That is utterly outrageous.'

But Diana Holland, of the Unite union, said: 'We welcome legislation and fines to expose and deter pay cheats and close the wage gap.'

Bakewell clause

• The Bill stops councils discriminating against the elderly in a 'Joan Bakewell clause'
• It was named for the TV host, 75, who challenged a parking fine as she could not hear the automated voice meter
• It will include a ban on complicated parking meters and heavy wheelie bins
• Benches for older people will have to be installed in designs for new children's play areas
• IT classes will need to target the elderly to help them use services on the internet