With Brexit creating a great deal of animosity within the current economic climate and current workplaces, if it wasn’t enough, since 6 April 2017 the government has made it mandatory for large private and voluntary sector employers to comply with the gender pay gap reporting regulations (GPG) under the Equality Act 2010.
Who does it apply to?
The GPG Regulations apply to employers who fall within the private or voluntary sector with 250 or more employees on the 5 April in the relevant year.
The rationale behind GPG Reporting?
Women expect to earn less than men over their entire career as a result of the difference in caring responsibilities, engaging in low skilled work, the qualifications and skills women possess, and discrimination.
The obligation to report under the GPG regulations will allow employers to review their current pay practices across the business and the differences that may exist. It will enable businesses to establish whether women have the opportunity to progress in their career within the organisation, and it will identify whether there is a gender pay gap between different levels of seniority.
How is the GPG calculated?
There are 6 calculations that should be carried out under GPG reporting. Your organisation should calculate the:
1) mean gender pay gap
2) median gender pay gap
3) mean bonus gender pay gap
4) median bonus gender pay gap
5) proportion of males and females receiving a bonus payment
6) proportion of males and females in each quartile band
All data collected under GPG reporting must be accessible to employees and the public.
Employers must publish their gender pay gap information on their own website and must retain the information online for three years. These details must also be published on a government sponsored website.
The negatives of GPG reporting
The GPG findings may bring negative publicity on the business and affect employee retention. It may be a factor that potential employees will consider before making an application to join the business. There are also risks of employee claims for equal pay against the employer.
An action plan for you
There are obvious positives and negatives to the review of the GPG reporting for the employer.
Employers should demonstrate and show that they are willing to eliminate the gender pay gap within their organisation, should one be found. For example, employers could put a long-term plan in place to beat the gender pay gap inequality or commence a formal review of their current pay practices.
To be compliant with the new gender pay gap reporting legislation, for more information and for our expert advice, contact one of expert lawyers now!