Gender Pay Gap Regulations 2017

Gender Pay Gap Information Regulations have now been published.

 

A final draft of the Equality Act 2010 (Gender Pay Gap Information) Regulations has been published with the Regulations applicable to private sector employers due to come into force this April (with similar Regulations for the public sector due in March).

The Regulations will apply to private companies with 250 or more relevant employees and the first gender pay gap report must be published online by no later than 4 April 2018. With some breathing room before the first reporting date, employers should consider carrying out a test report to ensure they are well prepared for the mandatory reporting requirements.

So, what should employers publish?

• the overall gender pay gap between men and women in their organisation using mean and median average hourly pay
• the proportion of men and women in each pay quartile
• information on the organisation’s gender bonus gap
• the percentage of men and women that received a bonus in the preceding 12-month period.

The reports must be published annually on the company’s own website and a designated Government website. There will be no sanctions for non-compliance per se, however the Government has said it will highlight and identify those publishing full and explanatory reports.

Simple, yes? The reality is that the concept of gender pay gap reporting creates a number of questions, some of which have been addressed in the final version of the Regulations (which can be found here). The definition of ‘relevant employee’ has been widened to include casual workers and agency workers for example, and employees based overseas will now be included in the headcount. Group companies will not be allowed to submit one report on behalf of the ‘group’- separate reports for each company will be required. Luckily the Government has said it remains committed to compiling a handy guide to gender pay gap reporting in conjunction with ACAS which will no doubt be well received. ACAS has also released its guidance on gender pay gap reporting which can be found here .

So are you ready for the new reporting regulations? A recent XpertHR survery revealed few employees are fully prepared.

For more information on the gender pay gap reporting requirements, Alex Christen and Sarah Peters will be running breakfast briefings on 14 March in Cardiff and 21 March in London. Please also see our recent blog on gender pay gaps through the generations here.