Starting last year in 2017, businesses with more than 250 employees (see below for who counts as an employee) have to report their gender pay gaps both on their customer facing websites and to the Government online. Businesses with less than 250 employees are welcome to publish and report, but it is not mandatory.
The pay gap must be calculated using a specific date, known as the ‘snapshot date’. The snapshot date is the same each year:
Public sector organisations - 31st March
Businesses and charities - 5th April
The reports must be made within a year of each snapshot date, meaning the deadline for organisations is drawing very near.
There are a large number of companies that have failed to report their calculations so far. The Equality and Human Rights Commission are threatening court action, sanctions and unlimited fines to those that do not meet the deadline.
Who Counts as an Employee?
The general definition used for these purposes is:
People who have a contract of employment, to do work or provide services.
- Employees that have a contract of employment.
- Agency workers. These are part of the agency that provides them not the organisation using them.
- Self employed people who personally perform work.
This includes those that work part time and those that job share. It also includes those that work overseas so long as their contract is subject to UK law.
Partners however are not included due to their pay being deducted from profit shares unlike regular employees.
What is a relevant employer?
The legal entity or relevant employer must register and report to the Gender pay gap reporting service.
If organisations have multiple payrolls, but only one relevant employer, then the relevant data from all payrolls must be merged into one set to be reported.
Private sector organisations that are part of a group must report separately if their organisations are a relevant employer. However, corporate groups can report figures for the group.
Public Sector Organisations.
Public sector organisations are a little more complicated but government departments, NHS bodies, most schools, the armed forces and local authorities all have to give reporting consideration:
Schools that employ more than 250 people must report and publish their pay gaps.
The governing body is responsible for publishing and reporting on maintained schools such as nursery, foundation, community or special schools.
The proprietor of academies and free schools is responsible for their publishing and reporting but private schools need to follow the guidelines for private sector reporting.
Other Private Sector Organisations.
All government departments must report and publish their pay gap data for all their employees including their executive agencies.
All organisations listed in the Schedule 2 to the Equality Act 2010 Regulations 2017 must publish and report using the public sector rules.
All other organisations not listed in the Schedule 19 to the Equality Act 2010 must follow the private and voluntary rules.
What data is published and reported?
- The mean and median gender pay gap in hourly pay
- The mean and median gender pay gap for bonuses
- The proportion of bonuses received by females and males
- The proportion of females and males in each pay quartile
There is advice and information for those wanting to make a difference to their gender pay gap. You can find information on the HMRC site and the Advisory, Conciliation and Arbitration Service website.
Photo credit to CGP Grey.