Burnham urges firms to publish pay in job adverts ahead of new law

Andy Burnham has called on businesses to publish salaries in job adverts rather than wait for a new law to take effect which will mandate them to do so.

The government said it is planning to bring forward legislation to make it compulsory for salaries to be visible on job adverts before people apply to them, making employers legally required to be transparent about pay.

The government said on Thursday it “will bring forward legislation as soon as possible”.

It said the move will help tackle “a common frustration” among job-seekers, particularly those applying to a job for the first time, and may help address gender pay inequalities.

“Whether you’re a young person starting out or a parent trying to support your family, you should know what a job pays before spending your time and effort applying for it. That’s why we will make it a legal requirement for all employers to say what you pay,” the prime minister said.

Burnham added: “But breaking down barriers is only one part of the job. We also need businesses to open more doors and give young people the experience and confidence to take that first step into the world of work.”

The prime minister’s push for firms comes after chancellor John Healey in his Autumn Budget said the government was planning to address “calls” to introduce mandatory pay transparency in job adverts and tackle gender pay gaps at firms.

EU transparency laws a ‘patchwork’ among firms

The announcement comes after British businesses continue to face headaches over complicated European Union pay transparency laws after a delayed, fragmented rollout across the bloc.

The EU pay transparency directive requires member states to mandate that companies disclose starting salaries and pay ranges in job listings, and some businesses must also report gender pay gaps. The rules aim to ensure equal pay for equal work, or work of equal value, between men and women across all 27 EU countries.

As the UK is not part of the EU, this directive does not apply, but many British companies are multinational and employ staff across the continent.

Amy Bird, a top partner at Magic Circle law firm Clifford Chance, previously told City AM that compliance can be difficult for businesses because implementation is “patchwork” after some have managed to roll it out, but many have either delayed or not implemented it.