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Will Starting Salaries Be Required In Job Ads?
March 18th 2022
The Government should consider making it compulsory for employers to publish starting salaries when advertising jobs, Parliament’s Education and Workforce select committee has recommended.
It said that requiring the publication of salaries in job adverts would help address an “information imbalance” between employers and potential employees.
The committee has also recommended the Government should consider placing restrictions on employers’ ability to demand “pay secrecy” in employment contracts through clauses that prevent employees from sharing details of their pay.
Both measures were called for by the Council of Trade Unions in a submission to the committee in October.
The council also went further by arguing workers should have the legal right to request information from their employer about what people in roles similar to their own were being paid.
The select committee has been conducting an investigation into “pay transparency” with the main goal of reducing unexplained pay gaps between men and women, different ethnic groups, and for the disabled.
It voiced support for a mandatory and “comprehensive pay transparency regime” that required action by employers above a certain size to address inequities, and that went beyond simply encouraging businesses to report on pay gaps.
“Research indicates that voluntary compliance models are less effective than those where reporting and implementation are strictly enforced,” it said.
“The most effective models appear to be those that require companies to prepare action plans with clear, time-bound and measurable goals for narrowing the gender pay gap.”
The committee noted that in Sweden all private-sector employers with more than 10 staff are required to have comprehensive plans in place to combat pay gaps, but said “the most useful data is captured from entities with more than 50 employees”.