Gender pay reporting legislation requires employers with 250 or more employees to publish statutory calculations every year showing how large the pay gap is between their male and female employees.
This means that the gender pay gap will be publicly available, including to customers, employees and potential future recruits.
About half of the UK workforce will be affected by the new reporting rules, which encompass 9,000 employers and more than 15 million employees.
By April 2018, large and mid-sized companies in the UK must:
- Publish their median gender pay gap figures, which compare the pay of the man and woman who are at the mid-point of the company payroll.
- Publish their mean gender pay gap figures – produced by dividing the total payroll by the number of workers.
- Publish the proportion of men and women in each quarter of the pay structure.
- Publish the gender pay gaps for bonuses
- There are six calculations to carry out, and the results must be published on the employer’s website and a government website within 12 months.
- Employers have the option to provide a narrative with their calculations. This should generally explain the reasons for the results and give details about actions that are being taken to reduce or eliminate the gender pay gap.
- Gender pay reporting is a different requirement to carrying out an equal pay audit.
- An employer must comply with the regulations for any year where they have a ‘headcount’ of 250 or more employees on 5 April (where the private and voluntary sector regulations apply) and 31 March (where the public sector regulations apply), but employers of all sizes should consider the advantages.
- A wider definition of who counts as an employee is used here (from the Equality Act 2010). This means that workers are included, as well as some self-employed people. Agency workers are included, but counted by the agency providing them.
If employers fail to comply they will be contacted by the Equalities and Human Rights Commission.
For further details we recommend you refer to the ACAS Website