- Ban NDAs in harassment cases
- Recommend transparent pay scales
- Protect whistleblowers, enhance diversity
The report on sexism in the city recommended that non-disclosure agreements (NDAs) be prohibited in sexual harassment cases so that offenders cannot continue to harm victims while they are compelled to remain mute.
As efforts to combat misogyny in the City of London “move at a snail’s pace,” an influential committee of Members of Parliament has urged the government to provide legal requirements for including pay scales in job advertisements and prohibit employers from inquiring about employment history.
The Treasury Committee’s report on sexism in the City and the thriving financial services industry it oversees detailed a multitude of shortcomings, such as “an era of impunity” and the “shocking” extent of misogyny, sexual harassment, assault, and bullying.
It also suggested that whistleblowers who report sexual harassment be afforded greater protections and that the use of non-disclosure agreements (NDAs) in sexual harassment cases be prohibited.
The report claims that such agreements, in which the victim swears to secrecy, are being used to conceal gender-based discrimination and abuse while the perpetrators go unpunished.
The company’s human resources (HR) departments allegedly place the organization’s reputation above the welfare of its employees, rendering the methods of handling complaints inadequate.
The committee heard evidence that 70% of whistleblowers who exposed discriminatory practices in financial services were victimized, fired, or felt resignation was their only recourse.
Harriet Baldwin, chief of the committee, stated that organizations with greater diversity perform better, but the report found that workplace culture “restricts the progress of women.”
It stated that progress towards addressing inequality could be more active. A mere marginal increase in the representation of women in senior positions and a slight contraction in the average gender pay disparity within the sector have been observed.
Additional suggestions put forth by the committee comprised decreasing the minimum number of financial services sector employees from 250 to 50 to qualify for gender pay disparity reporting.
Businesses with 250 or more employees are required to report on the pay disparity between men and women.
Companies that disclose a significant gender pay inequality must explain the discrepancy and release a plan of action, according to the committee.
The report identifies a lack of transparency as one of the causes of income disparities; therefore, it advises that prospective employers refrain from requesting salary histories as part of job applications and that pay information be made clear during the hiring process.
Firms must do more than take action, according to Ms. Baldwin.
While regulators and the government do possess a responsibility, they must exercise discernment in determining what will yield optimal results and refrain from implementing superficial procedures.
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