The United Kingdom’s newly proposed Employment Rights Bill is poised to bring about dramatic shifts to workplace compliance in the UK. Among its wide-ranging reforms, the Bill introduces enhanced pay data reporting obligations, new enforcement powers, and longer windows for workers to bring employment tribunal claims — developments that will substantially impact how UK employers with 250 or more employees manage pay equity and compliance.
These potential changes build on existing UK gender pay gap reporting rules and align more closely with the EU Pay Transparency Directive (EUPTD), underscoring the government’s broader push toward accountability and fairness in the workplace.
Key Pay Equity and Transparency Obligations for Employers
From 2026 onward, private sector employers with 250 or more employees would face additional requirements to develop and publish annual action plans aimed at advancing gender equality and closing pay gaps.
Specifically, employers will need to:
- Collect workforce data relevant to gender pay equity.
- Draft and publish annual equality action plans (voluntary from April 2026, mandatory by 2027).
- Set measurable improvement targets and detail how they will address identified gender pay disparities.
- Include initiatives supporting employees through the menopause as part of equality planning.
These changes move beyond simple gender pay gap reporting to require employers to show how they plan to close gaps, not just disclose them.
Enforcement Through the Fair Work Agency
A new Fair Work Agency, launching in April 2026, will consolidate existing enforcement functions into one powerful body. It will have authority to:
- Conduct investigations and “dawn raids.”
- Compel employers to produce relevant documents.
- Issue notices for underpaid minimum wage, sick pay, and holiday pay.
- Bring employment tribunal claims on behalf of workers.
This level of scrutiny represents a step-change for UK employers, with increased compliance risks across the spectrum of pay and employment practices.
Longer Employment Tribunal Claim Periods
Beginning in October 2026, employees will have six months (instead of three) to file employment tribunal claims.
This extended timeframe:
- Doubles the legal exposure window following disputes.
- Potentially increases the number of claims, particularly related to discrimination and pay equity.
- Places greater importance on internal resolution and proactive compliance measures.
What UK Employers Should Do Now
Employers should act now to prepare for the phased rollout of these requirements:
- Review and update gender pay gap reporting processes to ensure readiness for annual equality action plans.
- Implement or refine gender-neutral pay and promotion criteria to be prepared for new reporting and action plan requirements.
- Strengthen data systems to track pay and career progression by objective, defensible factors.
- Begin assessing internal policies on menopause support for employees and broader equality initiatives.
- Prepare compliance teams for the launch of the Fair Work Agency and its expanded enforcement powers.
How Trusaic Can Help
Our pay equity solutions help employers stay ahead of evolving pay transparency and compliance demands.
- PayParity®: Identify, explain, and resolve pay inequities across gender, race, age, and more using regression-based, legally defensible methods.
- R.O.S.A. (Remediation Optimization Spend Agent): Build out pay equity remediation action plans with confidence and maximize your ROI.
- Salary Range Finder®: Prevent new pay inequities from occurring by ensuring equitable pay at the point of hire.
- Regulatory Pay Transparency Reporting™ (RAPTR): Automate complex reporting obligations across jurisdictions, including the UK and EU.
- Communications Agent: Build clear, compliant narratives for pay gap reports and equality action plans.
With Trusaic, you can move beyond minimum compliance to establish a proactive, data-driven pay equity strategy — one that positions your organization as a leader in fairness and transparency.
Final Thoughts
The Employment Rights Bill signals a new era of accountability for UK employers. Mandatory action plans, gender-neutral pay progression requirements, and the creation of the Fair Work Agency mean that compliance will demand more than box-ticking — it will require meaningful, measurable steps toward pay equity.
With mandatory reporting expected in 2027, now is the time to prepare. Employers who act early will not only minimize compliance risk but also strengthen trust, engagement, and reputation in a competitive labor market.