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Fair Pay: Strategy and Compliance

The future of work is changing quickly and we all need to be ready to evolve.

As businesses continue to embrace this evolution head on, we all need to ensure we have appropriate strategies and enabling policies in place that support the growth of a truly diverse workforce that is treated fairly, paid equitably and without bias.

In facing this global change together, we face several key objectives:

  • The need to improve productivity, respond to business changes with agility and protect reputation; 
  • Workers’ desire for more flexibility, control, and improved wellbeing (not just more pay);
  • Governments’ desire to achieve fair pay and provide workers with “good work” that has both job security and quality development opportunities; and 
  • Societal pressure to ensure diversity and inclusion for all, delivering better outcomes by encouraging business to act responsibly and with fairness.

We need to ensure we have effective leadership and focus over our internal policies, processes, systems and data flows to meet the increasing and ever changing demands of the regulations that underpin fair pay and all worker rights.

How we can help

Recent updates

From 1 April 2023 NMW rates will increase to £10.42 for workers aged over 23, up from £9.50 in 2022.

Government consultation on holiday entitlement for part-year and irregular hours workers. The consultation seeks views on the Government’s proposals to introduce legislation to ensure holiday pay and entitlement is directly proportionate to the amount of time worked. This will have broad implications on the legal position and how entitlement and pay is calculated and managed in practice.

Please see a short Deloitte Legal blog here for further details.

Retained EU law proposals: implications for Fair Pay, including holiday pay and equal pay

The government published a draft bill which will in essence force a review of all law derived from the UK’s membership of the EU. The new legislation proposes the automatic repeal of any retained EU law with effect from 31 December 2023 (although that date can be extended until 31 December 2026 by the government), unless specific legislation is introduced to retain it. Therefore, the potential impact of this bill on our UK law could be huge - especially in relation to laws around worker rights.

Please see the Deloitte Legal Blog which provides further details on this.

The Supreme Court has handed down its judgement in the case of Harpur Trust v Brazel. The judgement confirms that “part-year” workers are entitled to the same holiday entitlement as workers who work all year (5.6 weeks). The case also confirms that employers should not apply a percentage of pay (e.g. 12.07%) when calculating holiday entitlement/pay.

Please see the Deloitte Legal Blog which provides further details on this.

The EU Pay Transparency Directive (which comes into force from 2024) aims to bolster equal pay protection across the EU with important new measures which employers, including UK employers, should be aware of.

Please see the Deloitte Legal Blog which provides further details on this.

The EBA published its final guidelines on gender pay gap reporting under both the Investment Firms Directive (IFD) and the Capital Requirements Directive. Aimed at financial sector businesses across the EU, the guidelines aim to harmonise the approaches taken to calculating gender pay gap metrics and apply cross-border.

Please see our Deloitte flyer for further details

  • Asda and Tesco Equal pay cases.
  • Thousands of female shop floor employees brought equal pay claims to an Employment Tribunal arguing they receive less pay than male distribution workers.


  • The Supreme court dismissed Asda’s Appeal was in favour that the role of shop floor workers could be compared to those in distribution centres.


  • The case was taken to the ECJ who concluded Article 157 could be relied upon and that roles of shop floor workers can be compared to those in distribution centres.
  • The case will return to a UK employment tribunal to determine whether the work of the shop floor workers is of equal value and the reasons for the discrepancy in pay.

Holiday Pay
Increased holiday pay averaging period from 12 weeks to 52 weeks for UK (Regulation 13A) leave



Changes to the salaried work conditions and to HMRC enforcement policy


Worker rights

Removal of the Swedish derogation (relating to pay between assignments) for Agency workers.

The minimum number of employees required to request an information and consultation agreement reduced from 10% to 2%.

Workers are entitled to a written statement of particulars on or before their first day of employment.

Employed parents have the right to 2 weeks' paid Parental Bereavement leave if their child aged under 18 dies, or if they have a stillbirth at 24 weeks or later.