In April 2017 the government will introduce mandatory new legislation that will require all companies with 250 employees or more to reveal specific information regarding the pay of their employees.
Companies will be required to publish figures showing the pay gaps between male and female employees, which will be made publically available to potential customers, employees and future employees in a bid to increase transparency and fairness.
The legal implications of the reporting will be complex, meaning that most, if not all, companies will require assistance to ensure their reporting is correct and in-depth enough to meet government criteria.
Is your company required to take part?
● If, as of 5 April 2017, your company headcount is 250 or more (including self-employed or agency workers)
● The legislation applies to the private and voluntary sectors and has been recently extended to include the public sector
What is your company required to do?
There are six calculations (outlined below) which must be published on an employer’s and government’s website within 12 months, and they must be confirmed by an appropriate representative from the organization.
Organisations must provide six calculations which show their:
1. Average gender pay gap as a mean average
2. Average gender pay gap as a median average
3. Average bonus gender pay gap as a mean average
4. Average bonus gender pay gap as a median average
5. Proportion of males receiving a bonus payment and proportion of females receiving a bonus payment
6. Proportion of males and females when divided into four groups ordered from lowest to highest pay.
What happens to the figures once they are calculated?
Organisations can publish their results without comment or they can provide their own narrative that offers deeper insight into their calculations and what they have done, or what they plan to do to reduce the pay gap.
The narrative may outline challenges, such as why certain employees earn a certain amount or received the bonuses they did, successes, such how changes to company policy have helped lower the gender pay gap, and how the business is planning for the long-term.
N.B Gender Pay Gap reporting is different to equal pay as it shows the difference in average salary between all men and women in the UK workforce.
Does your business require assistance?
berg is a Manchester-based law firm who is helping organisations navigate Gender Pay Gap reporting. berg’s HR specialist and Employment Partner, Michelle Gray, is hosting a free online Gender Pay Gap reporting webinar on Tuesday 7th March which will cover:
● What the regulations say and how they will impact your business
● How to prepare for the regulations
● How to interpret and apply the regulations
● Understand what can happen if you fail to comply
● How to protect against claims and manage risks
Register your interest in the Pay Gap Reporting webinar today to ensure your organisation avoids any challenges come April.
Please note, whilst the regulations require compliance for organisations with 250 or more employees, the Gender Pay Gap is an employment issue for any organisation irrespective of size. We would therefore encourage all businesses to sign-up to the webinar.