International Equal Pay Day, and this year it holds more significance.
The government are planning further reforms on equal pay and gender pay gap reporting as part of the Employment Rights Bill, likely to come into force in 2026.
If your organisation has more than 250 employees then it’s worth paying attention to the proposed changes now, so you can start thinking about how they will impact your business next year.
Gender pay gap reporting has been a legal requirement since 2017, but concerns remain because:
❌ Compliance and enforcement of this has been patchy
👎 Progression on narrowing the pay gap has been too slow
The ERB proposals aim to go one step further…
✅ Mandatory gender pay gap reporting plus enforcement and penalties
✅ Introduction of mandatory gender pay action plans
👍 Encouraging employers to commit on plans to address the imbalance
Employers that want to go a step further can also look at the wider employee picture to identify other factors that may be contributing to the pay inequality problem in the first place.
These can include giving some thought to or enhancing current practices on:
⇾ Improving retention of new parents
⇾ Flexible working policies
⇾ Adequate management training
⇾ Policies on diversity and equality
If you’d like advice on this topic that’s tailored for your organisation, you can book a FREE 30-minute call with a member of our team today.
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