Gender Pay Gap – What you need to know
Around 9,000 businesses, charities, and other large public sector organisations in the UK employing over 15 million employees are now required to publish their gender pay gaps to help create a more equal workforce. These must be published annually on a government website by 4 April 2018 for companies in the private and voluntary sector or by 30 March for the public sector organisations.
Under the new legal requirement all UK companies with 250 or more employees must publish a snapshot of their gender pay gap data as at 5 April 2017 for private companies and voluntary organisations or at 31 March 2017 for the public sector.
All eligible employers will need to publish calculations every 12 months showing the pay gap differences between male and female employees.
Employers can register their organisation on the government’s online reporting service https://www.gov.uk/report-gender-pay-gap-data. They must, where applicable, be confirmed in a written statement by a Director, Chief Executive or other responsible person.
There are six calculations that need to be reported annually and these must be published on the employer’s website and on the government’s website within 12 months and must remain on these websites for three years. Employers may also provide a narrative on their own website explaining what their calculations mean:
- Average gender pay gap as a mean average
- Average gender pay gap as a median average
- Average bonus gender pay gap as a mean average
- Average bonus gender pay gap as a median average
- Proportion of men receiving a bonus payment and proportion of women receiving a bonus payment
- Proportion of men and women in each pay quartile ordered from lowest to highest pay
Penalties for non-compliance
There are no penalties as such, but this will be reviewed if levels of compliance are not satisfactory. However, non-compliance would amount to an unlawful act falling within the existing enforcement powers of the Equality and Human Rights Commission. The Commission’s powers of enforcement are set out in the Equality Act 2006.
If you would like more information, or would like to discuss your reporting obligations, please don’t hesitate to contact our Audit & General Practice Partner, Chris Moss, on the details below:
Audit and General Practice Partner
direct dial: 01942 292587
mobile: 07973 129273