GENDER PAY REPORTING
From 6th April 2017, employers with 250 or more employees will be required to publish data each year showing how large the pay gap is between their male and female employees, in accordance with the new Gender Pay Reporting Legislation.
Employers will be required to publish the data on the company’s website, as well as a government site. Guidance published by ACAS suggests there will be penalties for failing to comply.
There are six calculations to carry out and these cover the average gender pay gap as a mean average; the average gender pay gap as a median average; the average bonus gender pay gap as a mean average; the average bonus gender pay gap as a median average; the proportion of males receiving bonuses compared to females; and the proportion of males and females when divided into four groups ordered from lowest to highest paid.
Employers will have the option to provide a narrative alongside the calculations to outline the factors behind the results. This can also offer details about the actions the Employer plans to take to reduce or eliminate its gender pay gap, should it have one.
This will not be a quick exercise to complete and if this does affect your business, you should start thinking now about who will be responsible for compiling the data.
If you would like guidance or advice on this matter, please call Practical HR on 01702 216573 or email email@example.com