The long-waited regulations about the gender pay gap rules are here & reporting have been published. Consensus HR is pleased to let you know what this new regulation involves – and how it affects employers.
‘The right to equal pay for equal work’ was originally discussed in 1959 as part of the Labour Party’s Manifesto. Following a number of treaties, legislation – and strikes – the Equality Act was finally introduced in 2010. We now have the final version of the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.
What does gender pay gap reporting involve?
The legislation requires employers to publish annual information relating to pay.
The main points of this new legislation are summarised by Colin Leckey and Hazel Oliver of Lewis Silkin as being:
• The reporting regime applies to all private sector employers with 250 or more employees.
• Employers must publish the mean and median hourly pay gap between men and women, based on the pay period containing a specific date in April each year (the “snapshot date”). “Pay” for this purpose includes any bonuses paid in that pay period.
• Employers must also report the annual bonus gap between men and women, again using a specific date in April, together with the proportion of male and female employees who received a bonus that year. “Bonus” is defined widely to include commission and securities.
• There is an additional obligation to publish the numbers of men and women in each of four quartile pay bands.
Who is involved?
Based upon section 83 of the Equality Act 2010, the following employees should be included within gender pay reporting:
• Any people employed under a contract of employment, a contract of apprenticeship or a contract personally to do work. It also applies to Crown employment and to service in the armed forces.
• Those employees who are not based in Great Britain but are still regarded as being employees of employers within scope could still be covered if there is a strong connection with Great Britain.
• Agency workers will be taken into account by the employer with whom they have the contract of employment, and this will generally be their agency.
Two groups of people who will be excluded are:
• Self-employed people (those who are not within the definition of employee in the Equality Act) or volunteers should not be included in the overall gender pay gap calculations.
• Partners, including LLP members, referring to both pay and bonus data
When does gender pay gap reporting start?
The first calculation date is April 2017. The data must be published on the employer’s website by April 2018, remaining there for three years.
Comment from Consensus HR:
“It’s been a long time since equal pay was introduced in 1959,” says Matthew Pinto-Chilcott, founder of Consensus HR. “As we start 2017, the Government is finally going to make it a legal process that companies of 250 employees and over must report their gender pay of all their team.”
He adds: “Consensus HR believes that all areas of the Equality Act should be fair for everyone regardless of their personal attributes such as sex, race, age etc. People should be given the opportunity to work. Should they not be able to perform the duties of the role, time should be taken to ascertain why. Employers should then introduce adequate measures and/or reasonable adjustments as needed to allow individuals to be successful.
“Obviously we do not see sex as a reason why anyone is unable to perform a role unless physical demands prohibit it but this is applicable to both sexes.”