If you’re an employer with 250 employees or more you will now need to publish your gender pay gap data annually. New Government 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.
The figures must be calculated using a specific reference date – this is called the “snapshot date”. The snapshot date each year is
- 31 March for public sector organisations
- 5 April for businesses and charities
What do I need to do?
- Employers must publish their gender pay gap data and a written statement on their company website and report their data to Government online using the gender pay gap reporting service www.gov.uk/report-gender-pay-gap-data
- An employer must comply with the regulations for any year where they have a ‘headcount’ of 250 or more employees on the snapshot date but employers close to the employee threshold may consider the advantages of publishing.
- The regulations apply the same definition of employee as the Equality Act 2010. This is a broad definition which includes zero hours’ workers, apprentices and some self-employed people.
- There are six calculations to carry out, and the results must be published on the employer’s website and the Government website within 12 months. Where applicable, they must be confirmed by an appropriate person, such as a Chief Executive.
- Gender pay reporting is a different requirement to carrying out an equal pay audit.
- 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.
- While the regulations for the public, private and voluntary sectors are near identical, and the calculations are directly comparable, the public sector regulations also take into account the public sector equality duty.
Employers need to remember that gender pay gap reporting is now an annual requirement and progress on closing the gap will be expected every year. Whilst there is no financial penalty for not publishing, the Equality and Human Rights Commission will be able to issue court orders to those employers who do not report on time and failing to publish will be considered unlawful. The media interest is likely to be high in relation to companies that miss the deadline.
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This information should not be regarded as financial advice. This is based on our understanding in March 2018. Laws and tax rules may change in the future. Campbell Dallas is not responsible for content contained on 3rd party sites.