April 4, 2017
The difference in pay between men and women is troubling. But will the reporting scheme which gets under way this month be a step towards its eradication?
Employers with a headcount of 250 or more will be required to publish the difference between mean and median pay of full-time male and female staff, as well as the difference between bonus pay, the proportions of men and women awarded bonuses as well as crunch some complex numbers to calculate the lower, lower middle, upper middle and upper quartile pay bands.
There is a wider definition of who counts as an employee for the reporting compared to the Equality Act 2010. This means that workers are included, as well as some self-employed people. Agency workers are included, but counted by the agency providing them.
Private and voluntary sector businesses should base their data on staff employed on a ‘snapshot’ date of 5 April. Businesses will have 12 months to publish the information on their website and upload it for publishing on a government website also. The figures, along with a written statement confirming their accuracy, must be accessible to staff and the public. Employers have the option to provide a commentary alongside their calculations to explain the reasons for the results and give details about what actions being taken to reduce or eliminate the gender pay gap.
Whilst the reporting requirements might appear to only apply to businesses with more than 250 staff, in practice, any size business providing services to another business may be asked to provide the information voluntarily so they can prove to their suppliers pay staff fairly.