The Decrease in Gender Pay Gap and the Impact of New Brexit Reforms

The gender pay gap among all employees decreased to 14.3% in 2023, a significant progress compared to the gap seen in 2019 (17.4%). While this represents a step in the right direction, but there’s still a long way to go to achieve gender pay equality.

With some EU-derived protections being written into UK law at the start of January, the Equality Act 2010 has seen some amendments that could potentially influence the gender pay gap further. Understanding these amendments is crucial for employers to not only ensure compliance but to actively work towards promoting pay parity within their organisations.

Key changes to the Equality Act 2010 include the introduction of indirect discrimination by association, an amendment to the guidance on the disability definition, codification of the “single source” principle for equal pay claims, extended discrimination protection in recruitment, and codified support for breastfeeding employees.

These amendments emphasise the need for employers to review policies, promote inclusivity, ensure equal pay, improve recruitment practices, and support new mothers.

Here are some suggestions for employers in light of these changes:

1. Review Workplace Policies: Employers should review their workplace policies and practices to ensure they don’t disadvantage any group. This is especially important with the codification of indirect discrimination by association as a form of discrimination claim.
2. Promote Inclusivity: The updated guidance on the definition of disability means employers should ensure their workplaces are inclusive and allow for the full and effective participation of all workers, including those with disabilities.
3. Equal Pay Audits: Considering the codified “single source” principle for establishing equal pay claims, employers, especially large organisations or chains, should conduct equal pay audits to ensure workers in comparable roles across different areas of the business are paid equitably.
4. Improve Recruitment Practices: The extended protection from discrimination now includes comments around not wanting to recruit people sharing a particular protected characteristic. Employers should train their hiring teams to ensure their communication and recruitment practices are non-discriminatory.
5. Support for New Mothers: The codified protection for breastfeeding employees means employers should provide necessary facilities and support for breastfeeding mothers at the workplace. They should also be aware that protection from pregnancy and maternity discrimination may extend beyond the maternity leave period.

If you’re an employer and need further clarification on these changes or assistance in implementing them, speak to us about our TE Assist package and how it can benefit you.