New Years Resolution: Get Ready for Gender Pay Reporting
New legislation is due to come into force on 6 April 2017 requiring businesses with more than 250 people to publish details of the difference between the pay and bonuses of male and female employees, and even the proportion of men and women who received a bonus.
From 4 April 2018 the results will have to be published, for example on a website, and are based on a snapshot of data from 5 April each year. The information must be available for at least three years and details will also have to be uploaded onto the government’s reporting website.
Organisations are not required to comment on the results but may find it beneficial to do so to include a narrative of the results, particularly where there is a clear gender pay gap, in order to avoid reputational damage. If applicable, this could include an explanation that the results are better than other businesses within the same industry or the wider economy.
The statistics will include information on bonus payments made in the year preceding April 2017 and therefore could reflect bonuses paid as early as April 2016. Therefore, it is too late to do anything different to change those figures but businesses would be well advised to take action now to determine how they will collate the information and if possible to review their results to consider if any adjustments ought to be made in terms of salary before the first reports are made in April 2018.
We appreciate that this may seem like a daunting task and if preparing for the new reporting obligations is on your agenda for 2017, contact one of the experts in our Employment Team so we can help guide you through the new regulations and minimise the impact they could cause to your business.