New legislation to expose gender pay gaps

26 June 2008

The government is proposing new legislation which will oblige employers to make public the rates at which they pay men and women in an effort to close the gender pay gap.

The Equalities Bill, details of which are to be set out in a white paper, is due to be unveiled in the Queen’s Speech later this year.

Under the plans, all public sector organisations and firms with public sector contracts will be required to publish figures revealing their pay structures for male and female employees.

The figures will disclose the percentage difference in average pay between men and women but not the actual wages.

Although there will be no requirement for other private sector firms to disclose gender pay information, Harriet Harman, the Labour deputy leader who will be overseeing the new legislation, said that businesses will be given a template for publishing details on how they pay men and women.

Further legislation may be introduced obliging all private firms to make similar public disclosures on pay.

The Bill is also to allow employers to give preferential treatment to female and ethnic minority job candidates. In cases where the candidates are equally qualified, employers can offer jobs to women and ethnic minority applicants without the possibility of facing a claim for discrimination.

The aim is to create more diverse workforces.

Age discrimination in the provision of goods and services, such as holidays and healthcare, is similarly to be tackled by the Bill.

Interviewed on the BBC, Ms Harman said of the pay disclosure rules: “We have structural discrimination on pay. We will be able to see it clearly for the first time, workplace by workplace, and then women will be able see that they are paid less than men and they will be able to complain about it and challenge it.”