The proposed legislation aims to assist young jobseekers and curb discrimination after a Cabinet Office consultation revealed 94% public support for pay transparency. Government action follows data indicating that salary listings on UK vacancies have dropped to barely half of all postings. While equality watchdogs want additional curbs on asking about current earnings, human resources bodies warn that pay ranges often vary by over £10,000 depending on applicant skills.
Key points
Ministers are advancing legislation to mandate salary disclosures to tackle pay discrimin…: Ministers are advancing legislation to mandate salary disclosures to tackle pay discrimination and support young workers.
The CIPD cautioned that compensation depends heavily on candidate experience, creating pa…: The CIPD cautioned that compensation depends heavily on candidate experience, creating pay ranges that can exceed £10,000.
Mandatory pay transparency aligns the UK with broader regulatory reforms currently being…: Mandatory pay transparency aligns the UK with broader regulatory reforms currently being implemented across the European Union.
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Businesses should publish salaries in job adverts now, the prime minister is telling firms, rather than wait for a new law to come in that will force them to do so.
The government is planning to make pay details compulsory in adverts, with legislation on the issue being brought forward "as soon as possible".
It argues the change will help jobseekers, particularly those applying for their first job, and could help prevent pay discrimination. However, one industry group said setting pay was a complex process and regulating adverts was not always suitable.
It comes a week after the UK's equality watchdog said employees should legally be able to find out what their colleagues are earning.
Greater transparency
The Cabinet Office launched a consultation into pay and reducing discrimination in the summer, and the government said there had been "overwhelming support" for greater transparency, with 94% of respondents backing the move.
"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…
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