The new gender pay gap reporting regulations require large businesses with more than 250 employees to publish their gender pay gaps from 2018.
The regulations apply to private and voluntary sector employers in England, Wales and Scotland.
Under the new laws, employers will have to calculate their gender pay gap from April 2017, and publish the details by April 2018.
Early action is a positive step!
What is it?
The Gender Pay Gap is a term used to describe any difference between the average pay of men and women in a company. As such it can reflect other factors – not least the relative lack of women in senior management jobs.
It is a separate concept to that of Equal Pay, which has been part of the employment landscape of this country since the Equal Pay Act of 1970.
In any Business, women and men could be paid equally at every grade – but if the women are predominately in junior roles while the men dominate the higher paid management ranks then the Business has a Gender Pay Gap. It is entirely possible therefore that a business could have excellent Equal Pay provisions but still have a significant Gender Pay Gap. It is this possible Gap which will be revealed by new Government Regulations and Businesses will be expected to introduce and implement employment practices to reduce and hopefully eliminate the Gap.
What are the regulations and when will they come into effect?
The Regulations stem from Section 78 of the Equality Act 2010, introduced but not implemented by the last Labour Government. Section 78 requires that Employers with 250 or more Employees publish the difference between the average pay of their male and female employees. The Coalition Government decided in spring 2015 to implement the rules and the Conservative Government has continued the process.
Following several years of consultation, the earliest the Regulations could come into effect is October 2016, giving employers a window in which to prepare and get one step ahead – if they act now. The latest date for publication will be April 2018 using data based on those employed as at April 2017 and publication will be on the Company and Government Gender Pay websites.
What are the advantages of starting to work on this now?
Can you report and analyse your Gender Pay Data under current systems? If not, starting now will give you time to understand how you can remove the barriers to this. Good data is essential to developing your action plan.
The sooner you have the results of your data; you can start to develop the measures that will help you to reduce any significant Gender Pay Gap. Early action will be seen as a positive step.
If the data reveals that there is no significant Gender Pay Gap in the Business, then it allows the business to publish before the final deadline, which will show that organisation’s commitment to fairness for all employees and an inclusive culture. This will help you to recruit and retain the most talented employees.
How can we help?
Alexander Lloyd currently has an experienced Chartered MCIPD Pay and Reward Professional able to assist our clients with their Gender Pay Gap responsibilities.
With a wealth of pay and reward experience in a range of industries including Global Food and Beverage Manufacturing, major Airlines, Higher Education, Charity and Public Sector he has undertaken Equal Pay Audits, Internal and External Pay Benchmarking and Job Evaluation. He has designed and implemented Pay Restructures and is well placed to advise and coach your current staff or undertake some or all of the work involved for you.
For more information, contact 01293 572900 or email