04 May 2017 11:54 AM

With effect from April 2017 entities with more than 250 employees are required to disclose the differences between what they pay to their male and female staff.

The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 require that information is to be calculated to the “snapshot date” in April 2017 and included onto both their website and a special website provided by the government no later than April 2018, the information must be available to all employees and the public. The information must be signed off by a director or equivalent person within the organisation, and must be updated annually.

The information required is very specifically defined:

  • Difference in mean hourly rates of pay, expressed as a percentage of the mean hourly rate of pay of a male full time employee
  • Difference in median hourly rates of pay, expressed as a percentage of the median hourly rate of pay of a male full time employee
  • Difference in mean bonus pay, expressed as a percentage of the mean bonus pay of a male full time employee
  • Difference in median bonus pay, expressed as a percentage of the median bonus pay of a male full time employee
  • Percentages of male and female staff who were paid a bonus in the 12 months up to the snapshot date
  • Proportions of male and female staff in quartile pay bands based on hourly rates of pay

This information must be accompanied by a written statement which confirms that the information is accurate. It is required to be kept on the website for a period of at least three years from the date of publication.

It is expected but not required that the written statement will give information explaining gaps, differences and remedial action that they may be taking.

There are currently no penalties in place for non-compliance but there may be significant risk of reputational damage from negative publicity as this is likely to be very high profile.

It is worth pointing out those companies with significant adverse pay gaps will have to find ways to explain this, otherwise issues arising could include:

  • Reputational damage and negative publicity
  • Impact on employee attraction and retention,
  • Risk of claims from employees for equal pay
  • Adverse impact on procurement process

 

If you require any assistance with this and how it may affect your business please contact our Head of HR, Rosemary Hedgecock