As an employer, you may be tempted to direct your employees not to disclose their salary and include this as a clause within their employment contract. This is known as \u2018pay secrecy.\u2019 Although lawful, you may be unable to enforce such clauses due to certain limitations. While it may seem helpful to protect sensitive information, you should understand the limitations on pay secrecy clauses to avoid committing any unlawful acts. This article will explain what pay secrecy clauses are and how your business may utilise them.\u00a0<\/p>\n\n\n\n
Under the Equality Act 2010<\/em>, you cannot enforce pay secrecy clauses if an employee discusses their pay to determine whether it is connected with a protected characteristic. Protected characteristics include an employee\u2019s: <\/p>\n\n\n\n This allows employees to explore potential pay discrimination issues through open discussions with their colleagues.<\/p>\n\n\n\n If an employee can successfully prove that they are trying to identify a potential issue of unequal pay as a result of protected characteristics, you will be unable to enforce pay secrecy terms. As an employer, it is crucial to understand that your workforce may not welcome such pay secrecy clauses, which may create additional enforcement difficulties. <\/p>\n\n\n\n Moreover, the Equality Act 2010<\/em> requirements may override any contractual pay secrecy clauses, potentially leading to legal complications.<\/p>\n<\/div>\n\n\n\n While relevant legislation limits the scope of pay secrecy clauses, you can still include clauses in your employment contracts that prevent employees from disclosing confidential information, such as trade secrets or sensitive financial information. This may extend to details of their pay and benefits package. <\/p>\n\n\n\n However, in doing so, you must strike an appropriate balance. Any pay secrecy clauses included in employment contracts must not be so broad or restrictive that they prevent your employees from making relevant pay disclosures, such as to:<\/p>\n\n\n\n\n
Protecting Your Business Interests<\/h2>\n\n\n\n
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