Regulations are now in place meaning that by April 2018 employers will be compelled to publish data highlighting the gender pay gap within their organisation. This first report will cover the period to April 2017, and so data collection processes should be put in place now if they don’t already exist.
The gender pay gap is the difference between men and women’s aggregate hourly pay and makes no allowance for the nature of the roles undertaken. Therefore, it is likely that an organisation with junior roles predominantly staffed by one gender and/or senior roles by the other gender will show a significant gender pay gap.
The following changes will be introduced:
- The regulations will apply to employers who employ 250 or more employees
- Employers are required to publish the figures on the organisation’s website and submit evidence of compliance annually to the government. The published figures must show both the mean and median gender pay gap.
- Employers will also need to calculate and publish three other figures alongside the gender pay gap. These are gender bonus gap, proportion of men and women receiving a bonus and proportion of men and women working at each quartile of the organisation’s pay distribution.
Although there are not expected to be financial penalties for non-conformance, the government has suggested that they will name and shame those who do not comply. Many employers are therefore considering now the explanatory text that they will publish alongside the statistical reporting.
For more information, please contact Mark Abbs at firstname.lastname@example.org