The gender pay gap has been hitting the headlines again recently, particularly with the row over pay at the BBC. Employers will now be more aware than ever of the potential reputational impact of releasing gender pay differentials.
Do we have an obligation to publish a gender pay gap report?
The gender pay gap reporting obligations came into force in April, requiring private and voluntary sector employers with 250 or more employees on 5 April in any year to publish a gender pay gap report. Snapshot information must be taken on 5 April 2017, with the first reports due within 12 months.
Similar obligations apply to public sector bodies in England, if they have 250 or more employees on 31 March in any year.
What do we need to include in our gender pay gap report?
As regards hourly rates:
• The difference between the mean hourly rate of pay of male and female employees;
• The difference between the median hourly rate of pay of male and female employees; and
• The proportions of male and female employees in your lower, lower middle, upper middle and upper quartile pay bands.
As regards bonus pay:
• The difference between the mean bonus pay paid to male and female employees;
• The difference between the median bonus pay paid to male and female employees; and
• The proportions of male and female employees who were paid bonus pay.
You can also choose to include a narrative explaining any pay gaps and setting out what action you plan to take. The narrative could also report on any measures taken to reduce the pay gap so far and how effective these have been.
Where can we find out more?
It answers many FAQs including:
• Who counts as our employees?
• Groups of companies – what do we need to report?
• How do we calculate hourly rates? Do we include paid / unpaid overtime hours?
• What is bonus pay? Do we pro-rate bonuses?
• What should we say in our narrative?
• How can we reduce our gender pay gap?
Have a look at the Workbox home page where you’ll find a short information video, or speak to your usual Brodies’ contact to discuss a free trial or subscription options.
On August 11, 2017