Summary: The final ACAS guidance on the Gender Pay Gap Reporting Regulations, published in association with the Government Equalities Office, is now out. It takes into account feedback on the draft guidance. Whilst there are a number of helpful clarifications, three of the most significant changes are as follows:

1. Zero hour workers

The final guidance says that employees who receive no pay during the relevant pay period, whether or not this is as a result of being on leave, should be excluded from the pay gap calculations. This includes those on zero-hours contracts who do not work during the relevant pay period. This is important because including such staff in your analysis can materially skew your gender pay gap figures.

2. Bonuses paid in securities

The Regulations require employers to calculate the value of bonuses paid in securities at the time when the employee incurs a charge to income tax. It was unclear, however, how to treat securities under tax advantaged schemes which don’t incur income tax. The final guidance says that employers can ignore such tax advantaged securities in their bonus pay calculations.

3. Sign-on, buy-out and retention payments

It was unclear from the Regulations whether recruitment and retention payments should be counted as ordinary pay or bonus pay. This affects which pay gap statistics such payments should be included in. The final guidance confirms that such payments should be treated as bonus pay.

Next steps for employers

With the Regulations now in force, employers should be preparing for the new gender pay reporting regime in earnest. Our Gender Pay Gap Reporting: Getting It Right Guide sets out the steps employers need to take.

Employers can now register to report their gender pay gap data to the Government by accessing the Government’s new campaign page. This is of particular relevance now to employers who are well advanced with their gender pay reporting preparations.

Complying now with the new regime ensures you are best placed to manage and explain your pay gaps.