This is a guest post by berg.
On April 6th, the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 will come into force – but what exactly does this mean?
The legislation will call for UK businesses with 250 or more employees to reveal specific information regarding the differences in net pay and bonuses between their male and female employees. By revealing this information, it is hoped that businesses will be able to address gender equality in the workplace more adequately and be more transparent about the situation in their own business.
This is a big task for those businesses, and it’s not something that should be taken lightly. With this in mind, here is a look into the regulations, how they will affect you and what you need to do.
A ‘snapshot’ of data needs to be collected by affected businesses on the 5th April 2017. Employers then have a maximum of one year to report the data, this should be no later than 4th April 2018. This cycle of collecting and reporting will continue annually.
Employers are required to publish the data on their website for at least 3 years. Employers are also required to publish the information on a designated government website, to coincide with government reporting.
All affected businesses will need to provide six calculations:
● Average gender pay gap as a mean average (the percentage difference between the average of men’s and women’s pay)
● Average gender pay gap as a median average (the middle value in the ranges of men’s and women’s pay)
● Average bonus gender pay gap as a mean average
● Average bonus gender pay gap as a median average
● Proportion of males receiving a bonus payment and proportion of females receiving a bonus payment
● Proportion of males and females in each quartile pay band from lowest to highest pay.
‘Pay’ is defined as basic pay, paid leave, maternity pay, sick pay, shift premium pay, bonuses and certain allowances. There is no legal requirement to explain the numbers – it is up to each company to determine if and what is said about the figures.
Ultimately, the numbers will depend on whether you should explain the findings or not. If the results are controversial, it would be advisable to provide commentary on the numbers and what you are going to do to rectify the situation that has been brought to light by the data.
It is recommended to pre-plan a response when you aware of the report’s results, advising staff members about the numbers beforehand. The most important thing is to come up with a thorough action plan for you to take should the results be negative.
The point of the legislation is to close the gender pay gap. By reporting on their calculations, businesses can identify barriers that women can face in the workplace and take measured steps to improve diversity within their business.
To find out more about how the legislation will affect your business and the steps you need to take in April, watch berg’s webinar on Gender Pay Gap reporting, which has all the information you will need.
berg are a law firm providing company and commercial, litigation, commercial property and employment legal advice services. Their gender pay gap reporting whitepaper has more information on the legislation.