Employment Rights Bill bitesize: gender pay and equality 

The Employment Rights Bill was published on 10 October 2024, setting out a wide range of ambitious workplace reforms. For an overview of the Bill, see our ‘headlines’ article.

In this series of ‘bitesize’ articles, we look at different key provisions of the Bill in more detail, consider the implications for employers and explain what the next steps will be. 

Gender pay and equality: What does the Bill say? 

Since 2017, organisations with 250 or more employees have been required to publish annual specific gender pay gap (GPG) data, with employers encouraged (but not required) to publish a supporting narrative including action being taken to narrow the GPG. The Bill will introduce a new obligation on these organisations to develop and publish comprehensive equality action plans, alongside their GPG data. They will also be required to publish GPG information about service providers of their outsourced services. 

These action plans will need to cover the steps employers are taking in relation to gender equality, including measures to reduce the gender pay gap in their organisation, as well as how they are supporting women going through menopause. Action plans that are submitted will be published on the existing GPG reporting website. After the first publication of an employer’s gender action plan, it will not be required to publish information more frequently than every 12 months. 

The requirement to produce an action plan will be enforced by a new Regulatory Enforcement Unit for equal pay, which will be dealt with in the forthcoming Equality (Race and Disability) Bill.  

What does this mean for employers? 

The proposed changes introduce new responsibilities and compliance obligations on large employers. Organisations will be required actively monitor and report on gender pay disparities as well as implement strategies to address any identified gaps. This obligation includes regular audits and transparent reporting to ensure accountability. Where a large employer fails to publish an action plan, it will be added to a list published on the reporting website.  

In addition, employers will be expected to provide a supportive environment for those employees going through menopause. This will involve putting in place accommodations for these employees, such as flexible working arrangements and access to health resources. Employers may also need to invest in training and resources to meet these new standards, including revising existing policies, conducting training sessions for management and staff, and ensuring that employees are aware of the support available to them. 

What are the next steps? 

In its Next Steps document, the Government has confirmed that guidance on menopause (for employers) will be published. Further details on the full requirements of the equality action plans will be included in separate regulations, which will be consulted upon in due course.  

These proposed reforms will be consulted on in 2025, with most of the changes to come into effect no earlier than 2026. Under the proposed Equality (Race and Disability) Bill, further measures in relation to ethnicity and disability pay reporting and extended equal pay rights are anticipated.