Currently, gender pay reporting legislation requires employers with 250 or more employees to publish statutory calculations every year showing how large the pay gap is between their male and female employees. The results of any calculations must be published on the employer’s own website and on a government site making details of any gender pay gap publicly available to clients, employees and potential future recruits.
Employers have to publish six different calculations each year and when the results are published, an employer has the option of providing an accompanying narrative. The narrative can be used to explain the results and to give details about any actions that are being taken to combat any existing pay gap or, to comment on any successes which may have been had.
Although the requirement to report on the gender pay gap currently only sits with employers with 250 or more employees, the director of the Government Equalities Office has informed the House of Commons Treasury Select Committee that plans are underway to develop gender pay gap reporting. Various proposals have been advanced including one to lower the threshold for reporting obligations to include smaller companies. This proposal is based on a desire to ensure that companies are taking active steps to reduce any gender pay gaps as opposed to simply treating the matter as one of simple compliance.
The proposal to extend the gender pay reporting obligations remains just that at this stage: a proposal however, we will keep you updated as to the progression of this matter. In the event that it seems likely that these changes to the current gender pay reporting obligations will be made then we will provide you with all you need to know on the matter accordingly.
If you have any questions about Gender Pay Gap reporting or, about the matters of gender equality or equal pay more generally, then please do not hesitate to contact the Employment Law team on 01274 864999.