Obstructing Job Applicants Right to Negotiate Wages is Unlawful
Employers and firms take advantage of their positions of power during recruitment. They decide to omit pay information from job adverts so they can see who would be willing to accept low offers.
Pay -slips or requests for CTC (Cost To Company) are used to spy on competitor information and disrupt a fair competition for talent. Firms aren’t trying to improve on offers, but are using privileged information against candidates to limit their ability to negotiate for a better wage.
This results in a lack of competition for talent and wage stagnation as firms have no reason to try offer competitive compensation packages.
Unfair Information Sharing
When a recruiter or employer knows how much a job applicant is willing to work for, this information is used to limit the applicant’s negotiating power.
Below is a list describing conduct that can be legally challenged. Compensation packages are highly confidential pieces of information. When in the wrong hands, the information can be used to destroy a rival firm’s talent strategy.
It is unlawful act in terms of both the Constitution and the Competition Act.