{"id":16941,"date":"2022-10-10T10:02:30","date_gmt":"2022-10-10T10:02:30","guid":{"rendered":"https:\/\/www.adzuna.co.uk\/?p=16941"},"modified":"2022-12-06T17:33:23","modified_gmt":"2022-12-06T17:33:23","slug":"uk-europe-salary-transparency-laws","status":"publish","type":"post","link":"https:\/\/www.adzuna.co.uk\/blog\/uk-europe-salary-transparency-laws\/","title":{"rendered":"The state of pay: Salary transparency in the UK"},"content":{"rendered":"<p><strong>Ever applied for a job that didn\u2019t advertise the salary, only to be disappointed when you discover it\u2019s paying \u00a310k below what you\u2019re looking for?\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Salary transparency is when an employer tells you the salary upfront, and luckily, it\u2019s an emerging trend with laws and guidance rolling out across the EU and America. <\/span><span style=\"font-weight: 400;\">Will the UK follow suit? We hope so, as it\u2019s hugely beneficial to employees and jobseekers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s the \u201cstate of pay\u201d in other countries and why we may see more roles advertising a salary in the near future.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>Are there salary transparency laws in the UK?<\/h2>\n<p><span style=\"font-weight: 400;\">No.\u00a0<\/span><span style=\"font-weight: 400;\">The closest we have in the UK is the Equality Act. Under the <\/span><a href=\"https:\/\/www.equalityhumanrights.com\/en\/advice-and-guidance\/what-equal-pay\"><span style=\"font-weight: 400;\">2010 Equality Act<\/span><\/a><span style=\"font-weight: 400;\">, employees in the UK performing equal work must receive equal pay, regardless of gender. There are cases where a difference in pay can be justified such as length of service, experience, and geography. So for example, if you\u2019re a female working remotely in the countryside the law does not prevent a man working in London doing the same job from earning more.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employers following best practice should:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Have an equal pay policy<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Create transparent job descriptions and job titles\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Have grading structures and systems\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Undertake job evaluation schemes such as performance reviews.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">There\u2019s also no law against telling colleagues or prospective applicants your salary. Even if your employer has made you sign something like a <\/span><a href=\"https:\/\/sprintlaw.co.uk\/articles\/is-pay-secrecy-legal\"><span style=\"font-weight: 400;\">pay secrecy agreement<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, the best companies are proactively disclosing salaries within their job ads and advocating for full pay transparency.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>Why should you care about salary transparency?<\/h2>\n<p><span style=\"font-weight: 400;\">Pay transparency evens the playing field. Employees and applicants can make sure they\u2019re fairly paid. That could mean receiving the same pay as other candidates with a similar set of skills and experience.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For those who are newly graduated, transitioning between industries, or upskilling into a more senior role, without an \u201cin\u201d it\u2019s nearly impossible to know the going rates. Salary transparency means everyone has the same information up-front, including salary and benefits. It can also help prevent or reduce the amount of bias when it comes to pay, as some employees are more likely to advocate for themselves.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There\u2019s a benefit for businesses too. If all employers release salaries, businesses will be able to work out where they sit and if they\u2019re being competitive enough to entice the best staff. This is especially important considering the huge skills shortages that employers are experiencing across the UK, with employees leaving roles for better pay.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By knowing what their competitors are paying, employers can ensure that they\u2019re continuing to get the best applicants by offering better or equal pay and benefits.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Taking a transparent stance also shows jobseekers that a company cares about creating an equitable workforce and getting rid of pay gaps. That\u2019s very appealing to jobseekers looking for employers with values that match their own.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">By putting salary transparency laws into place, jobseekers know where they stand, and so do employers.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2>What are the laws like elsewhere?<\/h2>\n<h4>The US<\/h4>\n<p><span style=\"font-weight: 400;\">In the US, there\u2019s some exciting progress being made.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As well as all states following the <\/span><a href=\"https:\/\/www.cnbc.com\/2022\/01\/12\/states-and-cities-where-employers-must-share-salary-ranges-when-hiring.html\"><span style=\"font-weight: 400;\">Equal Pay Act<\/span><\/a><span style=\"font-weight: 400;\">, which is similar to the current rules in the UK, some states are putting pay transparency rules in place.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 20 states of the 50 states, there is a law in place regarding further transparency. For many of these, this is around an employee&#8217;s right to disclose their salary to others without fear of repercussion. Technically we already have these rules in place here. 12 states go a bit further, which could be a sign of things to come, all across the US and here in the UK.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Colorado currently has the most impressive pay transparency laws. Employers must post wage and benefits information for all promotion opportunities and job openings, including remote roles that can be performed anywhere.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To hold employers to account, they must ensure equal pay and keep a record of all employees, even 2 years after they\u2019ve left.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">State law also ensures that salary cannot be reliant on an applicant\u2019s salary history &#8211; so an employer cannot pay you less just because you were earning less before and as an employee you\u2019re allowed to freely discuss salary.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">California was the first state to pass a transparency law in <\/span><a href=\"https:\/\/www.shrm.org\/resourcesandtools\/legal-and-compliance\/state-and-local-updates\/pages\/california-draft-bill-doubles-down-on-pay-transparency.aspx\"><span style=\"font-weight: 400;\">2018<\/span><\/a><span style=\"font-weight: 400;\">, and keen to keep up with Colorado, these laws are being updated to mirror those above.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Other states with pay transparency laws allowing applicants to find out the pay scale at some point during their application process include New York State, Washington, Maryland, and Connecticut.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the US, the laws can be country-wide, state-wide, and even city-wide. This means some cities have salary transparency laws in place that aren\u2019t currently state-wide.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Chicago currently has a proposed bill to enforce employers within the city to state salary ranges in job postings and it has been suggested that this could be rolled out <\/span><a href=\"https:\/\/www.nbcchicago.com\/news\/local\/chicago-could-require-job-posts-to-include-salary-ranges-based-on-newly-proposed-ordinance\/2807154\/\"><span style=\"font-weight: 400;\">state-wide<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17269 size-large\" src=\"https:\/\/www.adzuna.co.uk\/blog\/wp-content\/uploads\/2022\/10\/united-states-1024x621.jpg\" alt=\"\" width=\"1024\" height=\"621\" \/><\/p>\n<p>&nbsp;<\/p>\n<h4>The EU<\/h4>\n<p><span style=\"font-weight: 400;\">Now that the UK has left the EU, we don\u2019t have to abide by EU law. But this doesn\u2019t mean that we might not begin to make similar salary transparency laws to our neighbours.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The EU parliament has approved a proposal for pay transparency and has begun negotiations with member states.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This <\/span><a href=\"https:\/\/leglobal.org\/2022\/04\/20\/eu-negotiations-on-pay-transparency-directive-can-begin\/\"><span style=\"font-weight: 400;\">new ruling<\/span><\/a><span style=\"font-weight: 400;\"> demands that companies with at least 50 employees must disclose information making it easier for employees to compare salaries and expose existing gender pay gaps.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If a gender pay gap of 2.5% or above exists, employers will work to develop a gender action plan.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Employers are also not allowed to prohibit workers from disclosing their pay.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Prospective employees should also be able to access pay information, without having to request it and employers will be prohibited from asking about previous pay. So essentially, the salary for a role should be published.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The plans going through the EU will doubtless take time, but employers are being encouraged to think ahead and start working towards these guidelines now. Momentum is forming.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17270 size-full\" src=\"https:\/\/www.adzuna.co.uk\/blog\/wp-content\/uploads\/2022\/10\/europe.jpg\" alt=\"\" width=\"1212\" height=\"667\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>What to do when applying for a job with no salary<\/h2>\n<p><span style=\"font-weight: 400;\">When applying for a role without an advertised salary, it\u2019s easy to feel lost. Job applications are hard work, so spending time and effort on an application only for the salary to be well below your expectations can feel like a total waste of time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The most important thing is to start off by knowing your worth as an applicant. <\/span><span style=\"font-weight: 400;\">Use the <\/span><a href=\"https:\/\/www.adzuna.co.uk\/jobs\/value-my-cv\/\"><span style=\"font-weight: 400;\">ValueMyCV tool<\/span><\/a><span style=\"font-weight: 400;\"> to assess how much your CV is worth. If the calculator is well below what you think, it\u2019s probably time to give your CV some love. Make sure you showcase the skills and experience that employers are looking for.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should then <\/span><a href=\"http:\/\/adzuna.co.uk\"><span style=\"font-weight: 400;\">explore roles<\/span><\/a><span style=\"font-weight: 400;\"> in your area and read through our salary data which will help you see how salaries have changed year-on-year, and the top companies hiring in your area.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s also worth remembering that just because there isn\u2019t a law in place, it doesn\u2019t mean that an employer won\u2019t disclose. Before applying to a role, you could ask the hiring manager if your salary range is in their hiring bracket. They may not be able to tell you the salary range but they may be able to answer yes or no.\u00a0<\/span><\/p>\n<p><em><span style=\"font-weight: 400;\">Interested in finding out which companies offer the biggest signing bonuses? You can read more about it <a href=\"https:\/\/www.adzuna.co.uk\/blog\/the-companies-offering-the-biggest-signing-bonuses\/\">here<\/a>.\u00a0<\/span><\/em><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-17271 size-full aligncenter\" src=\"https:\/\/www.adzuna.co.uk\/blog\/wp-content\/uploads\/2022\/10\/man-working.jpg\" alt=\"\" width=\"1112\" height=\"705\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>Will the UK follow suit with salary transparency laws?<\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s looking positive! On <\/span><a href=\"https:\/\/www.gov.uk\/government\/news\/government-launches-pay-transparency-pilot-to-break-down-barriers-for-women\"><span style=\"font-weight: 400;\">International Women\u2019s Day 2022<\/span><\/a><span style=\"font-weight: 400;\">, the UK\u2019s Minister for Women launched a pay transparency pilot as part of a push to level up pay and employment opportunities for women.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The participating employers will publish salaries in job ads. This scheme was borne out of evidence showing listing a salary range on a job ad and not asking applicants to disclose salary history helps to provide a firm footing for women to negotiate pay on a fairer basis.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s clear, with this initiative, that the government sees pay transparency as a crucial aid to achieving pay equality and suggests a law may come into a force similar to the ones popping up across America and the Eurozone.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As UK jobseekers, we can expect to gain increasingly easy access to salary information.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-17272 size-full\" src=\"https:\/\/www.adzuna.co.uk\/blog\/wp-content\/uploads\/2022\/10\/lady-working.jpg\" alt=\"\" width=\"1130\" height=\"717\" \/><\/p>\n<p>&nbsp;<\/p>\n<h2>Join our campaign for salary transparency<\/h2>\n<p>At Adzuna HQ, we\u2019re on a mission to make the job market fairer and more transparent, and you can help! We&#8217;re calling on all businesses to show salaries in their job ads and campaigning for the government to make this the law<\/p>\n<p>Want to transform the job landscape for the better? <a href=\"http:\/\/www.adzuna.com\/salary-transparency\">Sign our petition now.<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><img decoding=\"async\" class=\"emoji\" draggable=\"false\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/11\/svg\/1f4a1.svg\" alt=\"\" \/>\u00a0<strong>Read more: <a href=\"https:\/\/www.adzuna.co.uk\/blog\/how-much-of-a-pay-rise-do-i-need-right-now\/\">How much of a pay rise do I need right now?<\/a><\/strong><\/p>\n<hr \/>\n<p><a href=\"http:\/\/www.adzuna.com\/salary-transparency\">Visit our site<\/a> to find out more about our campaign to #MakeSalariesMandatory on all job ads.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ever applied for a job that didn\u2019t advertise the salary, only to be disappointed when you discover it\u2019s paying \u00a310k below what you\u2019re looking for?\u00a0 Salary transparency is when an employer tells you the salary upfront, and luckily, it\u2019s an emerging trend with laws and guidance rolling out across the EU and America. Will the<a class=\"moretag\" href=\"https:\/\/www.adzuna.co.uk\/blog\/uk-europe-salary-transparency-laws\/\"> Continued \u00bb<\/a><\/p>\n","protected":false},"author":57,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1165,902],"tags":[1112],"class_list":["post-16941","post","type-post","status-publish","format-standard","hentry","category-pay-benefits","category-recruitment","tag-featured"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts\/16941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/users\/57"}],"replies":[{"embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=16941"}],"version-history":[{"count":0,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/posts\/16941\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=16941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=16941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.adzuna.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=16941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}