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UK Proposes Mandatory Pay Transparency to Close Discrimination Gaps

A consultation would set salary-disclosure rules enforced by a planned Equal Pay Regulatory Unit endowed with fining powers

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Business groups warned that the measures could make it harder to attract the best staff

Overview

  • Under the proposals employers would have to publish salary bands in all job adverts before recruitment begins.
  • Businesses may need to inform staff of colleagues’ pay levels and progression criteria to expose internal pay disparities.
  • A proposed Equal Pay Regulatory Unit would have power to fine non-compliant firms, issue injunctions, and adjust employment contracts.
  • The measures aim to extend equal pay enforcement beyond gender to include race and disability discrimination.
  • Trade bodies warn that mandatory salary disclosures could reduce employer flexibility and hinder talent attraction, particularly for small firms.