BBC News has published an article reporting that MPs have suggested that smaller firms (with 50 or more employees) should publish data setting out their gender pay gap figures. If you are an employer with 250 or more employees, you will be fully aware of the reporting requirements in respect of the gender pay gap. However, at present, any employers with fewer than 250 employees have no obligation to report these figures. Interestingly, as this article highlights, this excludes a considerable amount of the UK’s workforce.
Recent statistics have identified considerable gaps in gender pay at all levels of large businesses, which demonstrates how a person’s gender can affect their pay grade. Many employees affected by the pay gap may be considering their options and/or speaking to their employer or legal advisor to address this issue.
Whilst the requirement for smaller businesses to publish their figures would place obligations on smaller businesses who may not be equipped to deal with such reporting requirements, it is unlikely that any legislation would be passed without giving employers time to put procedures in place to ensure compliance.
This is likely to be a proposal welcomed by many as it would increase transparency in the workplace, but of course, it is up to the Government to decide to implement such measures. It is unlikely that this will be the last we hear of this proposal and employers of all sizes should review what their employees are paid and see if they can identify any pay gaps and address these issues where possible.
Our legal team would be happy to advise in relation to any concerns you may have as an employer or an employee who thinks they may be earning less as a result of your gender. Contact Audrey Spencer, Head of Employment on 01202 725400 or email firstname.lastname@example.org for more information.