The Government has published details of new gender pay gap reporting requirements that are expected to come into force in October 2016. The proposals remain open for consultation until 11 March 2016.
- The Regulations apply to private and voluntary sector employers with 250 or more employees.
- The first gender pay gap reports will have to be made by April 2018; annual reports will be required thereafter.
- Employers will have to report on their overall mean and median difference in hourly rates of pay between male and female employees (ie a single figure across the organisation, not by pay band). These figures will be calculated by reference to the pay employees receive in April 2017 (and each subsequent April).
- Pay will include basic pay, paid leave, maternity and sick pay, area allowances, shift premia and bonus pay but not overtime pay.
- The report will have to be published on a website that is searchable and accessible to the public and employees. Information has to be retained for three years. Employers are encouraged to produce voluntary narrative to explain the context to the report and set out what action is being taken to address any pay inequality revealed.
- A senior employee, such as a director, must provide a statement confirming that the information is accurate.
- Gender pay gap figures will have to be reported to the Government, which is planning to publish tables by sector of employers' reported pay gaps, highlight examples of best practice in reporting and potentially "name and shame" employers who have not complied.
- Employers will have to provide separate information about the proportion of male and female employees that received bonuses, the difference in mean bonuses paid to men and women, and the number of male and female employees in each salary quartile.
- No civil penalties are currently proposed for a failure to comply but this will be kept under review.
We will be holding a webinar to discuss the gender pay gap reporting requirements more fully shortly. Please contact Jo Broadbent if you would like to receive an invitation.