Further to the implementation of the Gender Pay Gap Regulations, the information published by organisations is now publicly accessible via the gender pay gap viewing service. This can be accessed here.
By way of a reminder, the Regulations required large private and voluntary sector employers (ie, those with 250 employees or more) in England, Wales and Scotland to take a snapshot of pay and bonuses as at 5 April 2017 (although it was 31 March 2017 for public sector organisations). They then have 12 months to publish a report on their own and government websites (see above link) indicating the differences between the average pay and bonuses of male and female employees, as well as an assessment of male and female employees within each quartile of the organisation.
Data will focus only on those employees who are receiving their full pay at the time of the snapshot, to avoid the analysis being skewed due to the reduced pay levels relating to statutory absence periods (eg, sickness, maternity, paternity etc).
In addition, some elements of pay such as overtime and expenses are also excluded and, for those organisations operating salary sacrifice schemes, the figure after salary sacrifice will be used in the calculations.
Data can be accompanied by explanations for any significant gaps that have been identified and must also include a statement from a director or senior employee declaring its accuracy.
Failure to comply with the Regulations will not lead to any new civil penalties. However, it will be considered an ‘unlawful act’ which falls within the existing enforcement powers of the Equality and Human Rights Commission (EHRC).
If you are a large private or voluntary sector employer, it would be advisable to seek professional advice to ensure compliance with your obligations in relation to the gender pay gap reporting process, fulfilment of your reporting obligations and putting measures in place to reduce any gender pay gap identified.
Author: Chris Nagel, Employee Management Limited
DISCLAIMER: This article should not be regarded as constituting legal advice in relation to particular circumstances. This article is merely a general comment on the relevant topic.
Published on 15th May 2017
(Last updated 21st March 2018)