From 12 June 2025, new protections came into effect giving employees the right to discuss their pay without fear of penalty or reprisal. Employers can no longer include “pay secrecy” or “pay confidentiality” clauses in employment agreements, nor can they stop employees from sharing or asking about pay information .
Why the Change?
The goal is simple: to improve fairness, reduce pay inequities, and make progress on closing persistent gender and ethnic pay gaps. Transparency creates accountability, and accountability fosters equity.
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What This Means for Employees
- You are free to discuss your pay with colleagues if you choose.
- You cannot be disadvantaged or disciplined for talking about your pay.
- You are not obliged to share your pay if you prefer not to.
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What This Means for Employers
- Remove or update any existing pay confidentiality clauses in employment agreements.
- Ensure managers and HR teams know employees have this legal right.
- Focus on having clear, fair, and well-documented pay structures to build trust.
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Tips for Employers: Supporting Better Pay Conversations
The thought of employees openly comparing salaries can feel uncomfortable. But with the right approach, pay discussions can build trust instead of tension. Here are some steps employers can take:
- Be proactive, not reactive
Don’t wait for employees to raise concerns. Communicate early about your approach to pay – how decisions are made, what factors influence increases, and the organisation’s commitment to fairness.
- Clarify the “how” behind pay decisions
Publish or share guidelines that explain your pay bands, performance measures, and progression opportunities. Transparency in process reduces speculation.
- Train managers for confident conversations
Equip managers to handle pay-related questions without defensiveness. Roleplay tricky conversations and give them language that reassures employees.
- Normalise career and pay pathways
Show employees how they can progress within your organisation, so pay is linked to growth and achievement rather than mystery.
- Focus on equity, not equality
Equal pay doesn’t always mean the same pay. Help your team understand that experience, skills, and responsibilities matter – and ensure your rationale is applied consistently.
- Encourage one-on-one discussions
Invite employees to raise pay concerns privately, so conversations don’t spiral into “us vs them” debates. At the same time, respect their right to talk openly with peers.
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How Better HR Practices Can Help
For employers, this is not just a compliance exercise. It’s an opportunity to review pay policies, strengthen communication, and ensure equity is part of your workplace culture. At Better HR Co., we help employers design structures and conversations that remove the guesswork, build confidence, and ultimately support fairness across your teams.
