Job adverts must reveal salaries under new ‘say what you pay’ law
John E. Kaye
- Published
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UK PM Andy Burnham wants businesses to stop hiding wages from jobseekers, with new legislation planned to force employers to publish pay details and help tackle discrimination
Employers in the UK will be forced to reveal salaries in job adverts under new government plans to end the practice of making people apply for jobs without knowing how much they will earn.
The government believes forcing companies to disclose pay upfront will make it easier for people to find suitable work, reduce wasted applications and help expose unfair differences in wages, particularly those affecting women.
The move follows research showing that just 41 per cent of employers always advertise salary ranges, while only 18 per cent consistently publish a specific figure.
The proposed changes would bring Britain closer to rules being introduced across the European Union, where employers will be required to disclose starting salaries or pay ranges to job applicants.
According to a statement, the government intends to introduce the salary legislation “as soon as possible”, although it has yet to announce when the rules will take effect, what information employers must disclose or how companies that fail to comply will be penalised.
Prime Minister Andy Burnham has called on businesses to start publishing pay details immediately rather than wait for legislation that will make salary transparency compulsory.
He said: “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.”
According to the government, its plans have attracted widespread support, with 94 per cent of respondents to a government consultation backing compulsory salary information, including 93 per cent of businesses.
Ministers argue that greater transparency could help workers challenge pay discrimination and prevent disputes over wages, while giving applicants a clearer idea of what they can expect to earn before attending an interview.
Bridget Phillipson, the Minister for Women and Equalities, said: “What a job pays is rightly at the forefront of people’s minds when looking for work – it shouldn’t be a guessing game.”
Penny East, the chief executive of women’s rights charity the Fawcett Society, welcomed the announcement, arguing that secrecy over pay had long disadvantaged women.
“For too long, salary secrecy has put women at a disadvantage, leaving them negotiating in the dark and making it much harder to challenge unfair and unequal pay,” she said.
The announcement forms part of a wider government drive to tackle youth unemployment and help more young people enter the workforce.
Around one-in-eight people aged 16 to 24 are currently not in education, employment or training, according to figures cited by the Youth Futures Foundation.
Alongside the pay reforms, engineering company Siemens Mobility has pledged to provide 10,000 work experience opportunities over three years, offering young people an introduction to careers in engineering, manufacturing and technology.
The programme will create more than 3,300 opportunities annually and contribute to the government’s target of delivering 200,000 additional work experience placements for 14 to 16-year-olds.
The initiative comes amid concerns about a future shortage of engineering talent, with Siemens warning that up to 70,000 workers could leave Britain’s rail industry by 2030.
Aglaja Schneider, managing director of Siemens Mobility UK and Ireland, said: “I started my own career as a graduate at Siemens Mobility, so I know first-hand how important those early opportunities can be.”
READ MORE: Women who earn more than their partners still pay the price at work, landmark study finds. A 22-year study of more than 7,200 couples reveals that women who bring home the bigger pay packet still shoulder much of the housework, potentially damaging their chances of promotion.
Do you have news to share or expertise to contribute? The European welcomes insights from business leaders and sector specialists. Get in touch with our editorial team to find out more.
Main image: A woman attends a job interview as the UK government prepares to introduce its ‘say what you pay’ law, which will require employers to disclose salaries in job adverts. The proposed legislation aims to help applicants make informed decisions before applying and tackle unfair pay practices, particularly those affecting women. Credit: Edmond Dantès / Pexels.
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