Source · Select Committees · Treasury Committee
Recommendation 22
22
Rejected
Paragraph: 109
Lack of pay transparency exacerbates and perpetuates gender pay gaps
Recommendation
We have heard compelling evidence that a lack of pay transparency, particularly at the recruitment stage, exacerbates and perpetuates gender pay gaps. It is vital that employees are paid based on their experience, skills and value to an organisation, rather than on their prior salary or ability to negotiate.
Government Response Summary
The government rejected moving directly to legislation for pay transparency, explaining it would not allow sufficient time for organisations to adjust, could cause backlash, and that it wants to learn from the experiences of other countries before committing to such a measure.
Paragraph Reference:
109
Government Response
Rejected
HM Government
Rejected
We do not believe that moving directly to legislation is appropriate at this time as it would not give organisations sufficient time to work through historic pay arrangements in a way that is fair for all staff, and increases the risk of a backlash to what should be a positive measure. Pay transparency is often the end rather than the beginning of a process. We know that many employers will be contending with historic pay decisions, may not have agreed pay scales, and could have legitimate reasons why they do not include pay information on job adverts. Pay transparency is still an emerging area, and we do not yet know whether there could be unintended negative impacts; we are aware that several countries are exploring legislative options, and therefore believe it makes sense to first learn from their experience.