Gender Pay Gap Reporting Hub

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Gender Pay Gap Reporting 

The Gender Pay Gap Reporting Regulations are expected to come into force in April 2017. The Regulations will require private (and voluntary) sector employers with 250 or more employees to publish data on their gender pay gap. Public sector employers will need to comply with similar regulations.

Regulation 1(2) defines a relevant employee as ‘A person who is employed by the relevant employer on the snapshot date’. Partners of a firm are excluded from the definition by Reg 1(4).

What is the meant by the average gender pay gap?

Hourly Pay – It means the difference between the mean and median average hourly rate of pay for male and female employees.

What about the bonus pay gap?

Employers will also need to publish the the difference between the median and mean average bonus awarded to men and women and the proportions of male and of female employees receiving bonuses.

When is the first deadline for reporting the gender pay gap?

Employers must publish their gender pay gap by 4 April 2018. However, this will need to be based on data from 4 April 2017, so employers need to be ready by April 2017.

Have we got 250 employees?

The Regulations take a snap-shot approach. Every 5 April you count your employees to assess whether you’ve hit the threshold.

What is an employee for the purposes of gender pay gap reporting?

This is not as silly a question as it may first sound. In 2016 and 2017 we’ve seen key employment law Judgments dealing with employment status of Uber’s drivers, City Sprint couriers and Pimilico plumbers.

Under the Equality Act 2010 an employee is wide and includes persons working under a contract of service, a contract of apprenticeship or a contract to work personally.

Only Full Pay Employees

The Regulations define an “full-pay relevant employee” as a relevant employee who is not, during the relevant pay period, being paid at a reduced rate or nil as a result of the employee being on leave.

This means an employee on reduced pay, for example Statutory Sick Pay (SSP) or maternity Pay don’t need to be included.

Partners are not counted 

Regulation 1 (4) specifically excludes partners of a firm from being counted.

Self-employed could be included in some instances

Self-employed contractors providing services personally may count as ’employees’ for the purposes of gender pay gap reporting.

Regulation 2(3) permits an employer to exclude data if it is not reasonably practicable for the employer to obtain the data. This may be applicable to non- PAYE self-employed contractors. 

The gender pay gap is the difference in average earnings between women and men.

This hub is sponsored by

Experts

Caroline Noblet co-leads the Squire Patton Boggs Labor & Employment Practice Group and is based in the London office. She has approximately 25 years of experience as an employment lawyer, advising a broad range of businesses including FTSE 100 and 250 companies. T +44 20 7655 1473 M +44 77 7847 0038

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The content of this Gender Pay Reporting Hub is for guidance only and does not constitute legal advice (nor is it intended to constitute legal advice). You should consult an employment solicitor without delay if you require legal advice on a particular employment matter.