Gender Pay Gap Reporting – companies to be exposed
Posted on 12th February 2016 at 14:48
Since the Equal Pay Act 1970 there has been continuing inequality in terms of pay between men and women – is this a problem that your company still has?
Since the Equal Pay Act 1970 largely superseded by the Equality Act 2010 there has been a requirement to pay men and women equally when doing the same jobs or work of an equal value. The Office for National Statistics’ recent report suggest the pay gap stands at 19.2% meaning women earn around 80p for every £1 earned by a man.
The government has outlined plans to force large companies in the private and voluntary sector (250+ employees) to reveal how much they pay their male and female staff starting in 2018.
In order to address this inequality gap new legislation states that records from payroll will need to be kept from April 2017, with first reporting in April 2018 and annually thereafter.
Whilst Gender Pay Gap Reporting under this legislation is only relevant to the private and voluntary sector with 250+ employees, other employers need to address this issue.
Once submitted the information will be published, with companies listed in a table and will be published on a searchable public website for three years.
Information on this website will include:
mean bonus payments paid to men and women (2016/2017),
the proportion of men and women who received a bonus
number of men and women in each quartile of the employer’s pay distribution
Employers will be strongly encouraged to provide voluntary contextual narrative to explain pay differential.
There will be no sanction for failure to comply – Government intends to name and shame.
How to compare male and female employees when considering gender equality is not as straightforward as one might presume. It is obvious to compare those with exactly the same job descriptions, but this is not necessarily where liability will begin and end, with claims having been upheld between workers with job titles within the same skill level bracket.
The timing of the first reporting has been set to allow firms some time to address any inequality before their data will appear on the list, or else face claims. Will you be ready? For more information or advice please contact us directly on: firstname.lastname@example.org
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