UK Equality Watchdog Proposes Salary Transparency Mandate
The Equality and Human Rights Commission suggests employees should be able to legally inquire about colleagues' pay to combat discrimination.
Employees in the UK should have the legal right to know what their colleagues earn, according to a proposal by the Equality and Human Rights Commission (EHRC). The watchdog suggests that employers be required to respond to questionnaires regarding colleagues' pay to help reduce pay discrimination.
The EHRC also recommends preventing employers from inquiring about a job applicant's current salary. This measure aims to stop historical pay disadvantages from perpetuating in future salaries. Currently, UK employers are permitted to ask about an applicant's current pay, though applicants are not obligated to disclose this information. Employers are also not presently required to provide salary information about colleagues in response to employee requests.
The EHRC is urging lawmakers to make it mandatory for employers to provide specific pay-related information within a set timeframe. This would include details on basic pay and hours worked, comparisons of employee pay, and information concerning bonuses, overtime, shift premiums, and performance-related pay. The commission argues that such transparency would significantly help in reducing pay discrimination, particularly for women.
Previously, the EHRC has stated that requiring employers to publish salary details in job advertisements would also benefit women. John Kirkpatrick, the EHRC chief executive, told the BBC that basing pay on salary history can embed disadvantage and discrimination into future earnings. He emphasized that while employers should offer competitive salaries, this should not establish a discriminatory pattern.
The Fawcett Society, an organization advocating for gender equality, has echoed concerns that inquiring about salary history risks maintaining historical pay disparities linked to gender, race, and disability inequality. The society noted that instead of rewarding skills, experience, and performance, this practice can lead employers to value an individual's perceived worth and negotiating abilities.