Are you set up for Gender Pay Gap Reporting?
26th April 2017 by Ella Gould
The obligations are now in full force, meaning that Companies and employers in the voluntary sector with 250 or more employees will be required to publish information about their business’ gender pay gaps. Employers will have 12 months commencing on 5 April 2017 in which to publish the data, with the first publication therefore being due on or before 4 April 2018.
Who is an ‘employee’ for these purposes?
A wider definition of ‘employee’ is used for the reporting requirements meaning that workers are included, as well as certain self-employed individuals. Whilst agency workers are caught by the provisions, they will be counted by the agency providing them.
What information must be reported?
The Regulations require employers to publish the following:
- The difference in mean pay between male and female employees;
- The difference in median pay between male and female employees;
- The difference in mean bonus pay between male and female employees;
- The difference in median bonus pay between male and female employees;
- The proportion of male and female employees who received bonus pay; and
- The number of male and female employees in each quartile of their pay distribution.
What is the procedure? Why has this been introduced? What can we do to help?
Communicating the data to the employees in a careful and effective manner will also be important, as well as addressing any concerns they may raise in relation to the results. We can advise on the approach and form of the communication, and assist with any required responses to employee queries or concerns.
We can help to ensure that you are fully complying with the regulations, including identifying who is an ’employee’ in light of the wider definition for these purposes, and other difficult areas such as calculation of the ‘hourly pay’ or ‘bonus pay’.
While some employers may already be implementing plans to improve gender equality and reduce or eliminate their gender pay gap, the government hopes that the reporting requirement will support and encourage action for those who are yet to address this. There are no sanctions for the gaps (if identified), however it is expected that the publication of the information will be welcomed by trade unions and other interested parties. With high-profile claims for equal pay against well-known companies such as Network Rail and Asda, this information could be appealing evidence to support similar claims in the future.
The report must be published on the business’ own website for a period of at least 3 years in a place where the information can reasonably be expected to be found. Furthermore, the employer must also submit the report to the designated government website.
Employers have the option to provide a narrative with their calculations, but they are not obliged to do so. Most businesses are, however, likely to welcome this option in order to give context to the results, explain the reasons for any gaps, and perhaps give details of current or planned actions to reduce the gender pay gap.
If you would like any further information on Gender Pay Gap Reporting please contact either Ella Gould on 01202 205040 or e.gould@laceyssolicitors.co.uk, or Robin Watson on 01202 755202 or r.watson@laceyssolicitors.co.uk
Ella Gould
Partner — Corporate and Commercial / Employment
Direct dial: 01202 377825
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Ella completed her Law LLB Hons degree at the University of Surrey graduating in 2013 and subsequently the LPC at the University of Law. Ella joined us to commence her training contract in 2014, qualified in March 2016, and became Partner in 2024. She acts on a wide variety of corporate, commercial and employment matters ranging from local businesses to national companies.
Ella can assist with business and share transactions, shareholders’ agreements, drafting articles of association and other general company law matters. Ella also advises on employment law aspects predominantly in a corporate context. In particular, her work includes drafting and reviewing contracts of employment, providing assistance and advice on TUPE transfers, and other general employer advice.
Outside of work Ella enjoys going for long runs around Bournemouth and the Purbecks, skiing when the opportunity arises and making the most of the local beaches in the summer.
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