Companies should get ahead of mandatory gender pay gap and menopause action plans

The UK government has issued new guidance for employers to provide more effective support and improve workplace equality ahead of the mandatory requirements being introduced next year.

Organisations with 250 or more staff can begin voluntary action plans for supporting workplace gender equality and menopause experiences from April 2026 – with mandatory plans becoming compulsory in 2027.

Under the new rules, employers will be required to identify at least one evidence‑informed action to address their gender pay gap and one action to support menopausal employees.

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Susannah Donaldson, an equality law expert with Pinsent Masons, said developing action plans now would help companies shift their emphasis from simply publishing pay gap data towards measurable improvement.

“Rather than treating the pay gap as an annual metric to be monitored, action plans require employers to identify the root causes of disparities and set out practical steps to address them,” she explained.

“This moves the conversation from ‘what the number is’ to ‘what we are doing about it’. This approach aligns with the growing recognition that transparency alone has limited impact unless employers take targeted, sustained action to close their gaps.

"Employers should treat this voluntary period as a genuine runway for success. The organisations that use the next year to test, learn and build confidence in their approach to action planning will be the ones best prepared for mandatory publication in 2027.”

The new government guidance suggests several actions companies can take as they prepare their action plans ahead of next year’s deadline. These include improving the recruitment process by removing words typically associated with gender stereotypes from job adverts, reducing unconscious bias when screening CVs and advertising leave policies to encourage more people to apply.

It also suggests developing and promoting staff by automatically considering eligible employees for promotion, offering mentoring, sponsorship and other development programmes, setting targets to improve gender representation Increasing transparency around pay, promotion and rewards.

The guidance adds company should look to support employees experiencing menopause with training for managers and appropriate workplace adjustments.

Pay gap related actions take up the majority of the 18 suggested actions, which is unsurprising as the gender pay gap is the most well-established metric used to assess gender equality globally.

Kate Dodd, an equality, diversity and inclusion (EDI) expert with Brook Graham, said the suggestions for action went beyond just pay decision-making.

“Instead, they are designed to encourage the cultural and behavioural shifts that underpin a fair and inclusive workplace,” she said.

“While the underlying objective is geared towards pay equality, the expectation is that wider cultural change, fostering equity, transparency and inclusion, will naturally flow through into the frameworks and decisions that shape pay over time.

“The government’s menu of suggested actions is a helpful catalyst for raising awareness of the need for cultural transformation to address pay inequality. But turning that guidance into meaningful, sustained change requires genuine commitment and follow‑through from employers.”

Menopause action plans may be less familiar territory to employers as this is the first targeted legal obligation relating to menopause in UK law, although it has been on the rise for diversity agendas in recent years, added Dodd.

“Menopause has been rising on employer EDI agendas for several years as general menopause awareness has risen in society and as some women have brought sex and disability discrimination claims related to menopause in the workplace. However, there is still too much talk, and not enough action,” she explained.

“The legal requirement for a menopause action plan can absolutely bring about positive change if embraced by employers.”