Gender pay gap reporting

14 November 2017

In an effort to tackle ongoing inequality between male and female pay (the full-time gender pay gap was 9.4% in 2016), the Government introduced new regulations in April 2017 requiring larger employers to publish data regarding the salaries and bonuses paid to employees.

The regulations apply to any private or voluntary sector employer with 250 or more qualifying employees on 5 April 2017. Those employers must publish the following data on an annual basis:

  • mean and median hourly pay figures for male and female employees;
  • mean and median bonus pay for male and female employees;
  • the proportion of male and female employees who received a bonus; and
  • the proportion of male and female employees in each of the company’s four salary quartiles.

The data must be published on the employer’s own website, and a central Government website, and must remain accessible to the public for at least three years. The information must also be accompanied by a statement of accuracy that is given by a director or equivalent senior employee of the business.

Many employers in the hotel and leisure industry will be caught by this obligation and so required to publish the necessary data on or before the first reporting date, which is 4 April 2018.

Extracting the necessary figures and calculating the relevant data is likely to be a significant exercise for those employers and their legal teams. They would therefore be well advised to carry out a “dummy run” now in order to establish that they have the resources and know-how necessary to comply with their obligations.

An additional benefit to completing the calculations early is that it will reveal any particularly unfavourable results at a time when the business still has an opportunity to mitigate them. Uncovering potentially damaging results early will allow organisations extra time to investigate the figures and, if necessary, prepare a plan of action to explain and address them.

Mike Tremeer Author
Mike Tremeer
Partner
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