New law to expose ‘gender pay gap’

Firms will soon be forced to reveal the ‘gender pay gap’ between male and female employees, under new legislation published this week.

Aimed at tackling discrimination in the workplace, the Equality Bill will require companies with at least 250 staff to publish details of the average hourly pay of male and female workers by 2013.

If too few comply voluntarily, the Government will employ legal powers to force them.

The new legislation is also expected to ban secrecy clauses which prevent staff from disclosing their salaries to colleagues.

Minister for Equality, Harriet Harman, said the Bill would help end discrimination at work, which sees women earn around 20% less than their male peers.

However, business leaders have voiced concerns over the timing of the new law. ‘This is a further example of unnecessary regulation at a time when companies, particularly small and medium-sized enterprises, are struggling to survive,’ commented Miles Templeman, Director General of the Institute of Directors.

Meanwhile David Frost, Director General of the British Chambers of Commerce, said the measures would prolong the recession and deter firms from hiring more staff.