20 April 2016
Gender pay gap reporting regulations draft published
The Government has issued the draft Equality Act 2010 (Gender Pay Gap Information) Regulations 2016, which will introduce mandatory gender pay gap reporting on an annual basis for private and voluntary sector employers with 250 or more employees.
The Regulations are scheduled to come into force on 1 October 2016 and will require employers to calculate and report on the difference in pay between male and female employees (defined as those who ordinarily work in Great Britain and whose contract of employment is governed by UK legislation) using data from a specific pay period that contains the relevant date, which is every 30 April from 2017 onwards. Employers will then have 12 months beginning with the relevant date in which to publish the information.
As the draft Regulations stand, employers will be required to disclose the following information:
- The difference in mean pay (i.e. the average pay figure) between men and women;
- The difference in median pay (i.e. the middle pay figure taking into account the full range of salaries paid) of men and women;
- The difference between mean bonus payments paid to men and women and the proportion of male and female employees who received a bonus; and
- The number of men and women in each pay quartile.
The information must be accompanied by a statement signed by a director or partner, or by a member of the business's governing body or its most senior employee, confirming its accuracy. It must be published in English on the business's website, so that it is accessible to employees and the general public, and retained online for three years so that year-on-year comparisons can be made. In addition, employers will have to upload the information to a government-sponsored website.
The Government has decided not to introduce civil penalties for non-compliance with the Regulations at this stage. The initial intention is to 'name and shame' employers who fail to comply with their gender pay reporting duties and to keep the issue of penalties under review.
Once the Regulations have been finalised, comprehensive guidance will be developed to assist employers in complying with their gender pay gap reporting obligations.
The Secretary of State will review the Regulations within five years and report on their effectiveness.
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2016 can be found here.
Says Jo Davis, "Now would be a good time to consider how this information is to be produced and whether a significant pay gap exists within your business that requires remedial action."
For advice, contact Jo by calling 01753 279029 or emailing your enquiry to firstname.lastname@example.org.