Most notably, the gender pay gap analysis revealed that women work for free for almost 2 months of the year compared to men on average.

An Overview

As of February 2024, among all employees, the gender pay gap was 14.3%. This equates to women waiting 52 days before they stop working for free. 

The gap will not close until 2044 according to the TUC analysis.

The highest gender pay gaps were in the following industries:

• Finance and insurance – 27.9%
• Education – 21.3% (despite being a female-dominated industry)

It was noted by the TUC analysis that the gender pay gap impacts women from the start of their careers and widens as women get older. The highest pay gap was in women aged 50 to 59 and was 19.7%.

Part-time working and unpaid caring responsibilities are contributory factors. This leads to overall lower earnings and reduced opportunities for progression. 

On average, women tend to be employed in lower-paid roles than men.

How Changes To Employment Law Could Help

The TUC analysis found the proposal by Labour for New Deal for Working People would be a huge boost to working women and reflects the type of employment law change required to assist in closing the gap.

These proposals include:

• Day one right to flexible working for all workers
• Ban of zero-hour contracts
• Introducing fair pay agreements to improve pay and conditions in social care (a female-dominated industry)

The TUC has also made recommendations related to strengthening pay gap legislation. These include:

• Employer action plans – employers set out how they will close their pay gaps
• Extension of gender pay gap reporting to all employers with more than 50 employees
• Expanding gender pay gap reporting to include ethnicity and disability pay gap reporting
• Requirement of equal pay audits
• Supporting families to share care responsibilities
• Increasing statutory maternity, paternity and shared parental pay
• Normalising flexible working

Next Steps For Employers

While it remains to be seen what will come from TUC’s recommendations and Labour’s proposals, TUC’s analysis of the gender pay gap will understandably spark consideration of employment contracts and terms amongst both employers and employees. 

Should you require any legal advice regarding current or future employment terms, do not hesitate to get in touch with Kitson Boyce. Our expert team of employment lawyers are on hand to navigate you through the current legislation and ensure your employment contracts are both fair and legal.