Government publishes plans for gender pay reporting

2016-02-16 chris posted:

The draft Equality Act 2010 (Gender Pay Gap Information) Regulations 2016 will apply to private and voluntary sector employers in England, Wales and Scotland with 250 or more employees. Under the proposals, large employers will be required to publish their overall mean and median gender pay gaps.

In addition, the gender pay reporting regulations will require large organisations to divide their pay distribution into four bands and work out the number of men and women in each quartile.

The draft regulations set a specific annual date of 30th April for employers to take a “snapshot” of what employees are being paid, beginning in 2017.

Employers will also have to publish the difference between their mean bonus payments paid to men and women, and the proportion of male and female employees that received a bonus. Bonus information will be worked out over a 12-month period, rather than taken from a snapshot.

Employers must publish their gender pay gap information on their website, accompanied by a written statement confirming that the information is accurate. They can support their gender pay figures with a further explanation, although this will not be a legal requirement.

The Regulations are expected to come into force in October 2016. This will give employers six months before they have to take their first snapshot (in April 2017), and 18 months before they must publish their figures (in April 2018).

The Government also plans to extend gender pay reporting requirements to public-sector employers. This will require separate legislation.

In addition, to highlight where the gender pay gap needs tackling most, the Government will publish the pay gap by sector in league tables that will allow women to see where the gap is being addressed and where more action must be taken.

For more information about gender pay reporting, and how this may affect your business, contact us today on 01225 632240 or at info@renneyandco.com.

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