Recent media coverage has followed the release of gender pay gap figures by more than 500 companies. However, this represents only a small minority of the firms that must report the figures by 4 April 2018.
Gender Pay Gap Reporting Regulations apply to employers who have 250 or more members of staff. Employers must publish certain statutory information every year which shows the pay gap between their male and female employees. The Regulations affect the voluntary and private sector. The public sector has existing separate rules.
What does the information show?
Gender pay reporting is a different from an equal pay audit which focuses on pay between men and women doing the same or similar job, or work of equal value. Paying someone less only because of their gender when the roles are the same is unlawful.
The gender pay reporting shows any difference in pay between all men and women in a workforce. This includes workers, as well as some self-employed people.
The results so far
So far, the highest differences in pay between men and women were found in Phase Eight and Easyjet where women were paid on average 64.8% and 52% lower than men.
Easyjet has explained the figures are due to the role differences between men and women. For example, only 6% of its UK pilots are women, while 69% of cabin crew are women.
Phase Eight have provided a similar explanation, that most males work in higher paid roles in the corporate head office and most women work in their retail shops. However, both companies state men and women in same roles are paid equally.
On the opposite end of the scale, the British Museum had a 0% pay gap and the armed forces had a 0.9% gender pay gap.
Do not miss the deadline
The deadline for employers to publish their gender pay audit data is 4 April 2018, while public sector organisations have to report by 30 March 2018. Employers could suffer significant consequences if they fail to comply. However, analysis from accountancy firm RSM has found that 90% of affected employers have yet to comply with their gender pay reporting requirements, with only 502 of 9,000 recently surveyed businesses stating they had already reported. This could have significant implications in terms of reputation loss and any enforcement action taken by the Equality and Human Rights Commission.
Employers should start planning to ensure they meet the reporting deadline. The report should contain the statutory information as required by the Regulations. There is an option to include a narrative with the report highlighting any actions taken to reduce the gender pay gap.
You can access the disclosed reports on gender pay gap here.
Get in touch
If you want to find out about your reporting obligations or the Gender Pay Gap Regulations, or require assistance in dealing with the publishable information, then please get in touch.