Prime Minister Andy Burnham has called on businesses to display salaries in job advertisements rather than wait for forthcoming legislation that will make it a legal requirement to do so.
The government announced plans to introduce legislation compelling employers to make salaries visible on job adverts before candidates apply, obliging firms to be fully transparent about pay.
The government confirmed on Thursday it “will bring forward legislation as soon as possible”.
Government plans to mandate pay disclosure
The measure is intended to address “a common frustration” among job-seekers, particularly those applying for their first role, and could potentially help close gender pay gaps.
“Whether you're a young person starting out or a parent trying to support your family, you should know what a job pays before spending your time and effort applying for it. That's why we will make it a legal requirement for all employers to say what you pay,” the prime minister said, as reported by City AM.
Burnham added: “But breaking down barriers is only one part of the job. We also need businesses to open more doors and give young people the experience and confidence to take that first step into the world of work.”
Context of EU pay transparency rules
The prime minister's push for firms follows chancellor John Healey's Autumn Budget announcement that the government intended to respond to “calls” for mandatory pay transparency in job adverts and tackle gender pay gaps across businesses.
The announcement follows ongoing challenges for British businesses grappling with complex European Union pay transparency regulations after a delayed and fragmented implementation across the bloc.
The EU pay transparency directive obliges member states to require companies to publish starting salaries and pay ranges in job advertisements, while some firms must also disclose gender pay gaps. The legislation seeks to guarantee equal pay for equal work, or work of equal value, between men and women throughout all 27 EU countries.
While the UK is not part of the EU, meaning this directive does not apply domestically, numerous British companies are multinational and employ personnel across the continent.
Amy Bird, a top partner at Magic Circle law firm Clifford Chance, previously told City AM that compliance can prove challenging for businesses because implementation is “patchwork” after some have managed to introduce it, while many have either postponed or failed to implement it altogether.
