Equal pay reform: What employers need to know about the Government's consultation

The Government has launched a consultation on major reforms to the UK's equal pay and pay discrimination framework, with the aim of creating a system that is more transparent, easier to enforce, and less reliant on lengthy tribunal litigation. The consultation follows concerns that equal pay claims can take years to resolve and place significant burdens on both employers and employees.

The proposals are divided into two phases.

Phase 1 focuses on improving the current system. Key proposals include:

• Greater pay transparency, with the Government considering measures such as requiring salary information and key pay-related terms to be included in job adverts.
• Stronger equal pay audit requirements, reducing the circumstances in which tribunals can decline to order an audit following a successful equal pay claim.
• Mandatory non-discriminatory job evaluation schemes where an employer is found to have breached equal pay obligations and does not already have an appropriate scheme in place.
• Reintroduction of statutory questionnaires in pay discrimination disputes, allowing claimants to seek information before or during proceedings.
• Creation of a new Equal Pay Regulatory and Enforcement Unit, with a proactive role in tackling pay discrimination and improving guidance for employers.

Phase 2 would broaden protections so that workers alleging pay discrimination because of race or disability benefit from rights and remedies more closely aligned with those available in sex-based equal pay claims. The Government is also committed to preventing employers from using outsourcing arrangements to avoid equal pay obligations.