REC calls for practical reform to equal pay framework

The REC has submitted a response to the government’s “Equal pay and pay discrimination” consultation, which forms part of its broader “Make Work Pay” initiative.  

The proposals aim to address weaknesses in the current system, improve pay transparency and extend protections to ethnic minority and disabled people, as well as outsourced workers. The consultation also proposed a new regulatory body, the Equal Pay Regulatory and Enforcement Unit.

Our response

The REC is in full support of tackling unlawful pay discrimination but says reforms must be practical, proportionate and deliver better outcomes for workers and businesses.

The existing framework must work effectively before additional obligations are introduced. The REC believes new rules should provide clear guidance, support fair comparisons between roles and avoid unnecessary complexity.

The REC also highlights the need for clear accountability across the recruitment supply chain. Recruitment businesses can help employers benchmark salaries and flag concerns, but clients hold the information needed to assess comparable roles and make pay decisions. Any new duties on those within the hiring supply chain to take ‘all reasonable steps’ must reflect these practical realities.

The REC supports greater pay transparency, which can help candidates make informed decisions and reduce wasted time in recruitment. However, advertised salary ranges must be realistic and meaningful, with clear guidance on how they should be set and who is responsible for their accuracy.

Equal pay reform must deliver meaningful change, not simply create additional compliance requirements. The REC will continue to engage with government to ensure the framework is evidence-based, workable and effective in tackling unlawful pay discrimination.

In the response, the REC called on the government to:

·       Fix the application of equal value before expanding its scope, making the existing system simpler, clearer and quicker for workers and employers.

·       Ensure the framework distinguishes unlawful discrimination from legitimate differences in pay, including those arising from labour market factors.

·       Define “all reasonable steps” clearly, including the steps hirers should take to establish and evidence fair pay and the role recruitment businesses can play in providing specialist labour market and salary information.

·       Ensure liability follows control, so that hirers remain responsible for pay decisions they control whilst recruitment businesses are able to fulfil a meaningful compliance role within their expertise and control.

·       Take an evidence-based approach to prevent pay inequality, better utilising labour-market intelligence to prevent pay inequality, rather than relying on disputes and litigation after the event.

·       Ensure enforcement is clear, proportionate and adequately resourced, including sufficient capacity within the employment tribunal system.

·       Assess the cumulative impact of equal pay reform alongside wider employment and agency-worker reforms, particularly on the cost, availability and flexibility of labour.

Read the full response here