The Death of the Secret Salary
New EU pay transparency rules are now taking effect across the EU. They will increase pay transparency, strengthen enforcement of the principle of equal pay between women and men, and improve access to justice for victims of pay discrimination. The UK is currently, consulting, and may follow EU laws which means:
Employers will have to
- inform job seekers about the starting salary or pay range in the vacancy notice or ahead of the interview, and no longer be allowed to ask them about their pay history
- provide employees, on request, with information on their individual pay level and the average pay levels, broken down by sex, for categories of workers doing the same work or work of equal value
- publish information on the pay gap between female and male workers (employers with at least 100 employees)
- carry out a pay assessment if pay reports reveal a gender pay gap of at least 5% that cannot be justified
The new rules also improve access to justice for victims of pay discrimination
- workers who have suffered gender pay discrimination can receive compensation
- employers that do not meet transparency obligations will need to prove that there was no pay discrimination
- EU countries should set penalties for breaking the equal pay rule
- equality bodies and workers' representatives can represent workers in legal or administrative proceedings
We’ve already seen this in the US and the practice of disclosing salaries has just meant huge salaries being disclosed i.e. 50-150k. Is the law really doing what it was designed to do, or is it getting in the way of good recruitment practices to get the best talent.
Is more regulation going to hurt the job market more, we already know vacancies are at an all time low, will this genuinely improve things for candidates?
What are your thoughts:
1. Have you seen pay compression surface once ranges went public, either in your own org or with clients?
2. How are you handling it: pay reviews, comms to existing staff, holding the line on new-hire offers?
3. Any examples (anonymised is fine) of a range that was clearly gamed to dodge the spirit of the law?
4. Is your organisation preparing for the UK consultation outcome, or waiting to see what lands?


