UK Equality Watchdog Recommends Ban on Salary History Questions

An equality watchdog in the United Kingdom has recommended that employers be prohibited from asking job applicants about their salary history. The Equality and Human Rights Commission (EHRC) suggested that companies should instead be required to disclose the wages of their current employees, arguing that knowledge of a candidate's past earnings can worsen existing pay disparities.

The commission is urging the government to expand upon its current proposal, which aims to mandate the inclusion of salary information in job advertisements, as part of a larger effort to reform equal pay legislation. The EHRC believes that barring employers from inquiring about previous earnings or pay expectations would help combat pay discrimination. The organization noted that allowing such questions could result in existing pay inequalities following workers from one job to another.

Citing research from the Fawcett Society, the EHRC highlighted that a significant percentage of both women (58%) and men (54%) reported that questions about their previous salaries led to them being offered lower wages. Mary-Ann Stephenson, chair of the EHRC, stated in an interview with The Times that "Unequal and discriminatory pay can fuel inequalities and limit opportunities in many aspects of our lives." She added that while the current equal pay system is complex, the proposed reforms offer an opportunity for improvement. "Publishing salaries in job adverts is a positive step," Stephenson said, "But employers should not be allowed to ask about candidates' salary history or expectations, which can result in existing inequalities being carried into a new role."

These recommendations follow a government consultation held in July concerning reforms aimed at simplifying the process of identifying and addressing unequal pay. The government's existing plans include requiring employers to provide salary details in public job listings or in writing before an interview if no advertisement is placed. Proposals also involve the establishment of a new enforcement unit and measures to expedite the resolution of pay disputes.

The EHRC, however, contends that these proposals need to be strengthened. The commission has called for legal backing to enforce a new statutory pay questionnaire, which would enable workers to gather information about potential discrimination before initiating legal action. Stephenson emphasized that the effectiveness of this questionnaire hinges on employers being compelled to respond.

Furthermore, the EHRC expressed its suitability to host the proposed Equal Pay Regulation and Enforcement Unit, contingent upon receiving additional funding to ensure its effectiveness. Annually, employment tribunals in the UK handle an average of over 10,000 equal pay claims, with some disputes taking more than a decade to resolve. The July government consultation acknowledged the excessive complexity of the current system. Separately, Chancellor John Healey is expected to announce new workplace measures in an upcoming budget, including provisions for paternity pay for self-employed fathers.