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Gender Pay Gap – it’s been in the news but what are the implications?

From next month (April 2017) large employers with over 250 employees will have to publish details of the pay gap between men and women annually on the business’s website.
The background to this is that, according to the Office for National Statistics, the pay gap between men and women is 18.1%. This is the difference between the median hourly rate paid to men and women. According to the statistics this pay gap is replicated throughout the economy from large employers to small employers.
The regulations set out compulsory areas that a business must publish about pay and about how to calculate that information:
The basic hourly rate calculation;
The % of men and women who receive bonuses;
The difference between the average and the median bonus pay for men and women;
The % of women in each pay quartile within the business.
The regulations set out how to calculate ordinary pay (which does not include overtime), bonus pay, share options and other means of financially rewarding employment.
The obligation will arise on 5th April each year – if an employer has 250 or more employees on that date then there is an obligation to publish this information before 4th April 2018. If a business is in a group structure, then the obligation applies to each individual company rather than the total number of employees within the group.
With recent court cases involving Uber, the question of who is an employee is up for review but these regulations apply to a business’s wider workforce and not just core employees. However if an employer does not have data about what its workers (but not employees) earn then it can exclude those workers from the calculations and the number of employees, in deciding whether it has reached the 250 threshold.
The data that is published may throw up interesting questions for employers who perhaps were not aware of the existence of a gender pay gap within the organisation.
For further information regarding employment call 0800 088 6004.