Posted by Malcolm Gregory, Partner
Are you ready for gender pay gap reporting?
Organisations will be required to analyse their gender pay gap and publish a report no later than 4 April 2018.
Gender Pay Gap Reporting – is it beneficial?
Gender pay gap reporting increases transparency and is an opportunity to advance gender equality in the workplace. The Government Equalities Office, 2015, Gender Pay Gap Consultation reported that if the 2.2 million women who want to work started working, 10% could be added to the size of the UK economy by 2030.
If organisations get on board with this, it will benefit individual businesses and the economy as a whole.
What is Gender Pay Gap Reporting?
A report which must be published to analyse any gender pay gap. Thereafter you should produce an annual report and publish this on your website, made available to view for three years.
Is this the same as equal pay?
No. Gender pay reporting is different to equal pay reporting.
Equal pay deals with the pay differences between men and women who carry out the same jobs, similar jobs or work of equal value. It is unlawful to pay people unequally because they are a man or a woman.
The gender pay gap shows the difference in the average pay between all men and women in a workforce. If a workforce has a particularly high gender pay gap, this can indicate there may be a number of issues to deal with.
The individual calculations may help to identify what those issues are.
Does my organisation have to report?
Large private and voluntary sector organisations with 250 or more employees. However organisations of all sizes should consider the advantages of analysing this data.
It will be important to identify which employees count towards the headcount for the purposes of this report. For example, casual workers directly engaged by you or zero hour contracts will fall within this scope, but an employee who is on sick leave and receiving less than full pay will not. Equally, an employee based overseas will be within the scope if their employment relationship suggests a stronger connection to Great Britain and British employment law than to the law of any other country.
What must be included in the report?
You will be expected to publish:
- Your median gender pay gap figures, which compare the pay of the man and woman who are at the mid-point of the company payroll.
- Your mean gender pay gap figures – produced by dividing the total payroll by the number of workers.
- Your proportion of men and women in each quarter of the pay structure – in other words splitting the workforce into four groups based on their pay, and showing the proportion of men and women in each group.
- The proportion of males and females receiving a bonus payment.
- The mean and median gender pay gaps for bonuses.
We have the data, what next?
Organisations that discover they do have a gender pay gap will be encouraged to publish an action plan alongside the figures detailing the steps they plan to take to address the problem.
This can include:
- Why the results show challenges. For example, an organisation might explain that their executives get the highest bonuses and most of them are men.
- Why the results show successes. For example, an organisation might explain that a recent change to their bonus policy has helped with lower bonus gender pay gap.
- Plans for long-term results. For example, an employer might want to tackle the underrepresentation of women in certain roles by running a recruitment campaign that encourages women to apply.
Finally, organisations will need a written statement confirming that the calculations are accurate. This must be signed by an appropriate senior person, such as a director or Chief Executive.
Gender Pay Gap Reporting: an opportunity for your business
Taking this opportunity will led to long-term benefits. We anticipate that your business will attract, retain and develop the best talent, increase employee engagement and enhance your brand. There are also wider economical advantages by increasing the women’s labour market.
For more information on Gender Pay Gap reporting please contact Ellen Goodland or our Employment Law team on:
0800 051 8054 Email us
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