New laws on reporting gender pay gaps

New gender pay legislation is now up and running requiring companies with more than 250 workers to publish the average pay of both men and women employees, including basic pay and any bonuses.

It will affect around 9,000 companies, collectively employing more than 15 million people, and is intended to tackle the issue of equal pay for men and women by exposing any disparities. All data must be published on employers' websites, and a Government site, by April 2018.

But there are indications that many UK employers are not ready for the implications of this legislative change with a new survey showing that less than half have enough key salary information.

A poll of 145 employers by Totaljobs, one of the biggest jobs sites in the UK, showed that 85 per cent were not reviewing their gender equality and equal pay policies and 58 per cent did not have complete salary information across roles and gender.

What employers need to know - some of the key points

• You must comply with the regulations for any year with a headcount of 250 or more employees.
• You need to gather specific data from your payroll, based on a 'snapshot date' - 5 April for businesses and charities and 31 March for public sector organisations.
• An employee is as defined by the Equality Act 2010 and means workers plus some self-employed people. Agency workers are included but counted by the agency providing them.
• Gender pay reporting is different to the requirement to carry out an equal pay audit.
• You can provide a narrative with your calculations, explaining reasons and any proposed actions to reduce or eliminate gender pay gaps.

What employers need to do

You must publish and report the following for your company or organisation:

• The mean gender pay gap in hourly pay
• The median gender pay gap in hourly pay
• The mean bonus gender pay gap
• The median bonus gender pay gap
• The proportion of men and women receiving a bonus payment
• The proportion of men and women in each pay quartile

For more detailed information, visit the Government website Gender pay back reporting: make your calculations

For legal help and guidance on any employment issues, please contact Wards Solicitors' Business Employment team by phone or by popping into one our 11 local offices.