The Government Equalities Office (‘GEO’) has clarified that the term “employees” used in the draft Regulations is intended to have the same (broader) meaning set out in section 83 Equality Act 2010 i.e. it would include LLP members and some self-employed contractors, not just those working under a contract of employment. In addition, the GEO has confirmed that regulation 7 of the Regulations (setting out the calculation of pay quartiles) will require an employer to look to the overall range of hourly rates paid to employees, and create four equal bands, each one consisting of one quarter of the difference between the lowest and highest hourly rates. It is expected that the Regulations will be amended following the consultation to clarify these points. For further information about the Regulations, please see our article here.