What is changing?
Employers with 250+ employees will be required to create and publish action plans to address gender pay gaps.
The Act also expands the obligation to take “reasonable steps” to prevent sexual harassment in the workplace by requiring employers to take “all reasonable steps.” This obligation will be extended to include liability for third party harassment.
NDAs will be void if they attempt to prevent a worker from disclosing details about harassment or discrimination, including disclosures about the employer’s response to allegations.
When is this changing?
- Action plans: These measures are expected, on a voluntary basis, in April 2026, before coming into force in 2027.
- Harassment: Expected in October 2026
- NDAs: Unknown at this stage
How can I prepare?
Action plans:
- Audit Pay Structures
Identify causes of pay gaps—e.g. promotion rates, part-time roles, bonus schemes.
Develop Targeted Action Plans
Include measurable goals, timelines, and accountability mechanisms.
Collaborate with employee groups to ensure plans are credible and inclusive.
Harassment:
- Risk Assessments
- Identify high-risk roles, locations, and interactions (e.g. lone working, customer-facing roles, power imbalances).
- Update Policies and Procedures
- Ensure they reflect the new provisions
- Use published resources (such as Acas’ guidance) to align with best practices.
- Ensure staff are trained
- Clear Reporting Channels
- Ensure staff know how to report concerns confidentially and safely.
- Review NDAs and Contracts
- Remove or revise clauses that could unlawfully restrict disclosures.
Actions applicable to both of the above:
- Monitor Progress
- Use internal dashboards or HR software to track outcomes and adjust strategies.
- Engage Legal and HR teams
- Stay informed on developments relating to the ERA