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Gender pay gap reporting

Author: Sarah Naylor

From April, if a business has 250 or more employees it must publish information every year showing how large the pay gap is between male and female employees. This is quite significant action being taken by the government, to tackle the issue of gender pay equality.

Statistics show that there is still a significant pay gap between males and females, and it is hoped that this new legislation will force businesses to be more transparent about their pay scales and decrease the gender pay gap under equality is achieved.

If a business has fewer than 250 employees, it will not be required to publish pay information however we recommend that it would still be good practice for every business to take steps towards eliminating gender inequality in the workplace.

Businesses will have to publish their results of 6 prescribed calculations to identify gender pay gaps on their own website and on a government site, meaning that the gender pay gap information will be publicly available to everyone including customers, employees, future employees etc. Employers have the ability to give a narrative to go alongside their calculations which will be particularly helpful if the results show a wide gender gap to be addressed. The narrative can cover what challenges the results pose for the business, what successes they show and any plans they have for long term results. From a business perspective this could help reduce the negative impact from poor reporting results. It is hoped that the result of this will be that employers will be encouraged to take new and fast action to reduce or even eliminate their gender pay gaps.

To summarise, here are the key points that businesses should be aware of:

Gender pay gap reporting will need to be done annually in every year that a business has more than 250 employees, however every business should consider the advantages of carrying out a gender pay report exercise

When considering whether a business has 250 employees, workers, agency staff and some self-employed people should be taken into account.

Gender pay reporting requirements will apply to all sectors – private, public and voluntary

Gender pay reporting is a different requirement to carrying out an equal pay audit

6 calculations are required and the results must be published on both the business’ own website and a government website

A narrative can be given alongside the calculations to help explain the results and set out details of any actions that are to be taken