In early 2016, the Government is due to publish draft regulations requiring larger employers to publish information showing whether or not there are differences in gender pay. Companies will have to publish information about the difference in pay between male and female employees, giving:
A single annual figure setting out the gender pay gap based on a standard set of data
The method of calculation for the whole workforce.
The second level of importing is also likely to include a separate figure on the gender bonus gap. In addition, employers will be able to provide commentary, explaining the different factors that contribute to their gender pay gap and actions they are taking to close the gap.
The regulations will apply to all private, public and voluntary sector employers in England, Wales and Scotland with 250 or more employees.
There is not, as yet, an exact date for the introduction of this gender pay reporting. However, it appears that the requirements could be introduced on a phased basis, with larger employers required to carry out gender pay reporting before smaller employers.
In preparation for this new legislation, Harwood HR recommends all employers (regardless of size) conduct an audit of their personnel to identify any pay gaps that may be present in the organisation.
If you have any questions regarding this process, please contact us and we will be happy to help.