Help for employers to close their gender pay gap

Mandatory gender pay gap reporting for large private and voluntary sectors employers have been in force since 6 April 2017. Large private employers are those with 250 or more employees on a specific date each year. The gender pay gap is the difference between the average pay of men and women in an organisation and set data around this needs to be reported. There are many factors that contribute to the gender pay gap including part time work, lack of women in senior roles as well as outright discrimination. Women also tend to be in lower-paid roles than men.  Statutory guidance has been produced to assist employers in calculating this.

See: Gender pay gap reporting: guidance for employers – GOV.UK

In February 2024, the TUC analysed figures and published an article that stated “that the average woman effectively works for free for nearly two months of the year compared to the average man.” 

How to improve gender equality in the workplace

On 11 August 2025, the government produced a report for employers to help them reduce the gender pay gap. The idea is that this will help employers create some effective actions to make this possible. It is based on 4 areas which are:-

• hiring and selection;
• talent management, learning and development;
• inclusion and retention; and
• leadership and accountability.

Each section suggests effective actions that an employer could implement. There are also  suggested ‘promising actions’ for employers to trial.

Employers are advised to evaluate the steps taken to determine their effectiveness. 

See: How to improve gender equality in the workplace: actions for employers – GOV.UK

Action

For those employers subject to gender pay gap reporting, the report on reducing the gap is certainly worth considering to improve this metric. 

Proposals for reform

The Employment Rights Bill (currently making its way through Parliament) contains additional proposals that will require employers with 250 or more employees  to develop and publish equality action plans showing what steps they are taking relating to prescribed matters of gender equality and to publish prescribed information relating to their plans. It is anticipated that these new provisions will be brought in 2027. Regulations are to provide more details.

There are also to be requirements to publish information about service providers they contract with for outsourced services.

The government has published a fact sheet with more details of their intentions.

See:  Equality Action Plans and Outsourcing

Get in touch

If you’re an employer and would like help on any of the issues discussed in this article then our highly experienced employment lawyers can help you stay compliant with employment laws and prevent costly claims. 

The contents of this article is a general guide only at the date of publication. It is not comprehensive, and it does not constitute legal advice. Specific legal advice should be sought in relation to the particular facts of a given situation.