Early this year, draft Regulations will be published by the Government
that will call for larger employers to publish information detailing any
differences in gender pay. Information about variations in pay between men and
women will have to be provided and this will need to include a single annual
figure setting out the gender pay gap and the method by which the calculations
have been made.
There is also likely to be a second reporting tier which will outline
the gender bonus gap. Employers will have the opportunity to include commentary
on the factors that contribute to their gender pay gap, and any measures being
taken to close the gap.
Who Will Gender Pay Gap Reporting Affect?
All private, public and voluntary sector employers in England, Wales and
Scotland that employ 250 or more personnel will be affected by the Regulations.
Businesses on the borderline with employee numbers will need to take note of
the Regulations so that they are ready to comply when the time comes. Smaller
businesses may also wish to take note of the information being published, as it
could well affect them at a point in the future, and may influence their pay
structures.
When Will Gender Pay Gap Reporting Start?
Watch this space. There is no precise date as yet and it is likely the
reporting requirement will be phased in, starting with larger employers.
What Does ‘Gender Pay Gap’ Mean?
According to the Equal Pay Portal, the gender pay gap is ‘a calculation
of the difference in the average earnings of the women and men in any given
population’. Basically it is the difference in average hourly earnings of male
and female full time employees.
The Office for National Statistics has published figures stating that
women in the UK earn on average 19 per cent less than men. The new Regulations
aim to eliminate gender inequality and take down the barriers that are in the
way of women’s success.
It has been illegal for more than four decades to pay women and men
varying rates of pay for equal or similar work. The Government says the pay gap
exists mainly amongst older workings and reflects ‘the types of jobs that women
tend to enter, and the levels of seniority they progress to’.
How Should I Prepare for Gender Pay Gap Reporting?
Ahead of the Regulations being introduced, it is a good idea to conduct
an equal pay audit on an informal basis. This will help you identify potential
issues in advance, and will give you time to take steps to address the issues.
As soon as the Regulations are introduced and there is clearer
information about employers’ requirements, we’ll let you know. In the meantime,
talking to your bookkeepers will help you with your equal pay audit.
