The gender pay gap regulations came into force on 6 April 2017. The regulations require employers (of at least 250 employees) to publish information relating to the employees’ pay to show whether there are differences in the pay of male and female employees.
The first snapshot date was 5 April 2017. Employers have until 4 April 2018 to publish the first gender pay gap information. Thereafter, they must publish the information annually.
Sejal Raja provides a recap on the information that needs to be published by 4 April 2018.
What information has to be published in a gender pay gap report?
Employers will need to publish:
- The difference in mean pay between male and female employees
- The difference in median pay between male and female employees
- The difference in mean bonus pay between male and female employees
- The difference in median bonus pay gap
- The proportion of males and females receiving a bonus payment
- The proportion of males and females in each quartile band
- A written statement, signed by an appropriate senior individual, confirming that the published gender pay gap information is accurate
The regulations define pay as including basic pay, paid leave, maternity pay, sick pay, area allowances, shift premium pay and bonus pay.
It does not include overtime pay, expenses and the value of salary sacrifice schemes, benefits in kind, redundancy pay, arrears of pay or tax credits.
Where do employers have to publish this information?
Employers must publish this information on their UK websites which are accessible to employees and the public. It should be set out in a manner accessible to all employees and the public. Employers are required to retain this information online for three years.
In addition, employers are required to upload the information to a government website: www.gov.uk/report-gender-pay-gap-data
What happens if employers do not comply with the gender pay gap regulations?
There are no civil or criminal sanctions attached to the regulations, although sanctions may be introduced at a later date. The Government has stated that it will publish league tables, which could have the effect of naming and shaming employers.
Despite this lack of sanctions, employers should nevertheless comply with the regulations as disgruntled employees who have concerns about the level of pay could draw the failure of the employer to publish the information to the Employment Tribunal’s attention in any proceedings.
Should employers publish their gender pay gap data?
Some employers have published their data with interesting results. It is important that your organisation publishes its data as failure to do so can lead to adverse publicity.
If the data shows a gender pay gap, you can provide a voluntary accompanying narrative alongside the data. It is important to provide a narrative to explain particular circumstances that have led to a higher than expected gender pay gap, and proposed action that might be taken.