Following on from our article on gender pay gap reporting last year, the new regulations came into force on 6 April 2017. The purpose of this legislation is to create transparency around employer’s pay practices.
UK employers with more than 250 employees are required to carry out gender pay gap data analysis. The data should include the employer’s gender pay gap, bonus pay gap, the proportion of each gender receiving a bonus over a 12 month period and the distribution of men and women working across four pay segments.
Employers will have a further 12 months (up to 4 April 2018) in which to publish the data. Data must be published on the employer’s website and a government website at https://www.gov.uk/report-gender-pay-gap-data.
The Government and Equalities Office together with ACAS have produced useful guidance (found here: https://www.acas.org.uk/index.aspx?articleid=5768) on managing this reporting which will be a good starting point when collating the data and reporting for the first time. Once employers have a system in place, reporting should become easier. Employers should look at their systems and records to ensure the data required is readily available.
For the purposes of reporting, employers should also include consultants who may provide services to its company but which are not on the payroll and employees based outside of the UK.
There is no requirement to include a voluntary narrative but employers may wish to do so. This will enable an employer to provide a context around the figures presented. The report must remain available on its website for three years, but can be left for longer if the employer so chooses. The data must be accompanied by a signed statement.
Failure to adhere to the regulations will constitute an unlawful act which could result in enforcement action against the employer. Whilst this may seem an onerous task it will give the employer a stronger insight into the gender pay dynamic within its own workforce.