From 2017, any organisation that has 250 or more employees must publish and report specific figures about their gender pay gap.
The Gender pay gap has been discussed widely in the press over the last few weeks. After the BBC revealed substantial disparity in what it pays male and female talent many are wondering where else such inequality might lie.
While speedy understands it is the rare company to have 250 or more employees, it does not mean the gender paygap should be ignored by those who don’t have such substantial numbers on their payroll.
Some workers have understandably said that gender pay imbalance would be a contributing factor in whether or not they took on employment in a specific company. So whilst most companies are exempt for now it is not inconceivable that reporting on the issue will become common practice for smaller businesses in the future. Speedy thought it would go over what presently expected as the law stands for larger companies, and hopefully give an insight into something companies should keep in mind for the future.
The gender pay gap is the difference between the average earnings of men and women, expressed relative to men’s earnings. For example, ‘women earn 15% less than men per hour’.
Employers must both:
publish their gender pay gap data and written statement on their public-facing website
report their data to government online – using the gender pay gap reporting service.
When you must publish and report
The figures must be calculated using a specific reference date – this is called the ‘snapshot date’. The snapshot date each year is:
31 March for public sector organisations
5 April for businesses and charities
Organisations must publish within a year of the snapshot date. For example, businesses and charities must publish by 4 April each year. Public sector organisations must publish by 30 March each year.
Your organisation will be a ‘relevant employer’ and must publish and report if it has 250 or more employees who are based in England, Scotland or Wales.
The legal entity that is the ‘relevant employer’ (for example, the private limited company or public sector organisation) must register with and report to the Gender pay gap reporting service.
If your organisation is a ‘relevant employer’ and runs multiple payrolls (for example payrolls for different departments or business functions), you must merge relevant data from all your payrolls and report one set of figures for your organisation.
Private sector group structures
Private sector organisations that are part of a group must report individually if they are ‘relevant employers’.
Additionally, corporate groups can voluntarily report combined figures for the entire group.
Public sector organisations – who must report and publish
Public sector organisations include government departments, the armed forces, local authorities, NHS bodies and most schools.
If your organisation is listed in Schedule 2 to the Equality Act 2010 (Specific Duties and Public Authorities) Regulations 2017, you must publish and report your gender pay gap data following the public sector rules (using a snapshot date of 31 March).
If you’re a public sector employer and not listed in Schedule 19 to the Equality Act 2010, you must publish and report – but follow the private and voluntary sector regulations. You must use a snapshot date of 5 April.
Government departments must publish and report gender pay gap data covering all of their employees – including their executive agencies. Executive agencies can also voluntarily report for their own organisations.
There are some rules about schools, but we shall leave these for the time being.
If your organisation is a Scottish or Welsh public authority and you already follow gender pay gap reporting requirements in your country, you don’t need to publish or report under these rules.
Who counts as an ‘employee’
The definition of ‘employee’ for gender pay gap reporting includes:
people who have a contract of employment with your organisation
workers and agency workers
some self-employed people (where they must personally perform the work)
When to count agency workers and self-employed people in your organisation
If your organisation uses agency workers or service companies, they count as part of the headcount of the agency or service company that provides them – not your organisation.
You must include self-employed people in your organisation’s calculations if they must personally perform work for you and you have the data available.
Part-time workers and job-sharing
You must count each part-time worker as one employee for gender pay gap reporting purposes.
If you use job-share arrangements, every employee within a job-share counts as one employee. So, if 2 people job-share, they count as 2 employees for gender pay gap reporting purposes.
When employees have more than one job with your organisation, you can either choose to count them according to how many employment contracts they have or as one employee. Your organisation can choose the most appropriate approach – but it will help the accuracy of your figures if you consistently apply what you decide.
Overseas workers and international jobs
As a general rule, you must count an employee based overseas if they have an employment contract subject to English, Scottish or Welsh law.
Partners in partnerships
You don’t have to include partners in traditional partnerships and limited liability partnerships in your calculations. This is because partners take a share of the organisation’s profits, which is not directly comparable with employees’ pay.
Data you must publish and report
You must publish on your organisation’s public-facing website and report to government your organisation’s:
mean gender pay gap in hourly pay
median gender pay gap in hourly pay
mean bonus gender pay gap
median bonus gender pay gap
proportion of males and females receiving a bonus payment
proportion of males and females in each pay quartile
You’ll need to:
gather specific information from your payroll
use this information to make your calculations
publish a written statement on your organisation’s website which confirms the accuracy of your calculations
You must publish and report your organisation’s figures if you’re a ‘relevant employer’. The Equality and Human Rights Commission can enforce any failure to comply with the regulations.