Update: Gender pay gap reporting
6th April 2017
Following a post at the beginning of the year regarding unequal pay, the impact of the Equality Act (Gender Pay Gap Information) Regulations 2017 is soon to be seen. As of today, Thursday 6th April, the 12-month clock has started ticking within which time all companies employing 250 people or more must publish their gender pay gap figures.
So what do the Regulations mean?
Whilst companies now have 12 months in which to collate their data and produce the report, the results are too late to be changed as the data will encapsulate the pay gap at the ‘snapshot’ date of 5th April. The Regulations lay out specific requirements in what needs to be reported on, including the mean and median difference in basic pay as well as bonuses, alongside the proportion of men and woman across quartile pay bands.
The question has already been asked as to whether these Regulations will be enough; recent reports on the Regulations would indicate not. There are still suggestions that whilst the pay gap needs to be reported, this does not go far in tackling the source and reasons for the issue as required by the Equality Act 2010. However, given the current evidence that just one-third of companies conduct any sort of gender pay review, the legal obligation for employers to acknowledge any pay differentiation is surely a step forward.
For public sector employers, the ‘snapshot’ date was 31st March meaning their reports can be expected ahead of the private companies’. Excluding public sector employment, the government has estimated that these Regulations will affect in the region of 8,000 employers and in excess of 11 million employees.
As the minister for women and equalities recently expressed, the gender pay gap is now narrowed to a record 18.1% – as the reports begin to come in over the next 12 months, it will become apparent whether the obligation to acknowledge and report pay gaps will force this percentage even lower.
Some of the remaining concerns regarding the Regulations are explored in more detail at the following link: http://www.independent.co.uk/news/business/news/gender-pay-gap-reporting-uk-government-rules-financial-inequality-critics-fawcett-society-womens-a7668581.html
You can access the original post exploring the need for the Regulations here: https://uniofglos.blog/law/2017/01/10/overcoming-the-gender-pay-gap-what-2017-will-bring/