News | Legal News

01 February 2017

Mandatory gender pay gap reporting to come into force

Employers will be required to publish salary disparities between genders under new rules that will come into force this year.

The legislation - which is being introduced from April 6 - will require firms with more than 250 employees to announce on its company website the differences in wages and bonuses between its male and female staff.

The results are required to be confirmed in a written statement by an authoritative figure within the organisation, such as a chief executive or director of finance.

There are six calculations that are required to be published under the new law. These incorporate both the mean and median averages of gender pay gap and bonuses. It also includes the proportion of both males and females that receive a bonus payment.

Additionally, employers will be required to highlight how many people of each gender fall within four separate pay scales - from lowest to highest pay.

Companies will be able to submit a supporting statement to add narrative to their calculations. This could include reasons for salary disparities or details of measures the firm is taking to eliminate the gender pay gap.

The new gender pay reporting is not the same as an equal pay audit which is also required under separate legislation and compares the salaries of men and women doing equal work within an organisation.

Kathryn Fielder

Kathryn Fielder

Tel: 01753 279029

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