SHOULD THE UK BE FOLLOWING THE EU?
Howard Longstaff
FULL-STACK PEOPLE CONSULTANT. solving problems for organisations & individuals. 30 years as a Head-hunter & Executive Search Consultant with 20 years Coaching /Mentoring, a Podcast Hosts, at “ALL ABOUT START-UP’S”.
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The EU
The EU wanted to strengthen the principle of equal pay for equal work between men and women through new EU rules on pay transparency.
WHEN? 24th April 2023. Companies must comply with the directive, which must be implemented in member states by June 2026.
Under the new rules, EU companies will be required to share information on salaries and take action if their gender pay gap exceeds 5%.
The directive also includes provisions on compensation for victims of pay discrimination and penalties, including fines, for employers who break the rules.
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Women earn on average 13% less than men per hour.
The pension pay gap, which is at around 30% less than men in the EU (data from 2018).
Companies with more than 250 employees will be required to report annually on the gender pay gap in their organisation to the relevant national authority. Smaller organisations the reporting obligation will take place every three years.
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The US
The US is also doing a Pay Transparency Directive which also creates a number of individual rights to pay transparency. It requires employers to advertise the salary range for each job vacancy and to stop asking job applicants about their current and past pay. But this directive is applied at federal and state by state. (https://www.rippling.com/blog/pay-transparency-laws-state-by-state-guide).
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The UK
The UK Gender Pay Gap Regulations were due to be reviewed last year, (2023). This was due to be extended to include an ethnicity pay gap reporting. The whole thing is currently left to a voluntary reporting structure.
Should the UK follow the EU or US with our own directive and make it law or are we going to sweep it under the table for the next ten (10) years?
Should the UK follow with our own directive?
YES
NO