Large companies will no longer be able to hide in the shadows when it comes to salary injustices.
By this time next year, 9,000 employers must publish the difference in average earnings between men and women, the differences in bonus payments between men and women and the proportion of men and women in each pay quartile.
Companies with more than 250 staff will have to publish a report on the difference in men’s and women’s earnings. Currently, less than 1/3 employers carry out such a procedure - something which now will be required under law.
A progressive move from the UK government.
It's a great start, but there's definitely a long way to go.
What about smaller companies? What exactly happens to those who don't comply?
At least the new legislation will open up a dialogue between employers and employees about equal pay, taking us one step closer to eradicating the gender pay gap completely.
Laws forcing employers to reveal the gender pay gap in their workforce, which come into force on Thursday, could do more to reduce the earnings gulf between men and women than four decades of equality legislation, according to employment experts. Thousands of employers will begin to record their gender pay gap figures for the first time and will have to publish their first figures before April next year. The government hopes that by shining an unforgiving light on pay disparities, companies will be forced to take measures to eliminate gender pay gaps, which it argues could add £150bn to annual GDP by 2025.