Final gender pay gap information regulations published

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Published

The much anticipated Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations) have been published. Subject to parliamentary approval, the Regulations will come into force on 6 April 2017.

After a number of delays, and following two consultations, we have the final version of the Regulations. Gender pay reporting will, from 6 April 2017, become mandatory for employers with 250 or more employees.

We reported previously on the draft Regulations published in February this year. What was originally envisaged as a single report on the overall gender pay gap in an organisation (i.e. the difference between the average hourly pay of male and female employees), had already by then become more complicated. In fact, under the final Regulations, employers are required to do six separate gender pay calculations. The Government hopes that these reports, taken together, will provide greater insight into an organisation’s gender pay differentials and will prompt that organisation to take action to reduce pay gaps and improve other gender pay information.

More detail on gender pay reporting, and how to do the various calculations, will appear on our website. Set out below is a summary of those reports relevant employers will have to publish on an annual basis.

Required gender pay information:

Overall gender pay gap based on mean hourly pay

Overall gender pay gap based on median hourly pay

Proportions of male and female employees in quartile hourly pay bands

Gender bonus gap based on mean bonus pay over 12 months

Gender bonus gap based on median bonus pay over 12 months

Proportions of male and female employees receiving bonuses over 12 months

The first three reports – the overall gender pay gaps and the proportions of male and female employees in quartile pay bands - are based on employees’ hourly rates of pay as at the ‘snapshot pay period’ including 5 April of the relevant reporting year. The other three reports – the bonus gap calculations - are based on bonuses paid in the 12 months leading up to that date (i.e. period 6 April to 5 April). Reports must then be published within 12 months of the 5 April ‘snapshot date’. Employers must publish the information on their own website and keep it there for 3 years. In addition, the reports must appear on a Government sponsored website (we are currently awaiting details).

Employers can choose to accompany their gender pay reports with a ‘narrative’ or supporting statement. They can use this statement to explain and comment on the mandatory reports, include other metrics (that they believe are more representative or put them in a better light) and to set out action plans for improving their reports in the future.

Your first deadlines

Employers with 250 or more employees as at 5 April 2017 will have to do calculations based on the April 2017 snapshot pay period and, for bonuses, the period 6 April 2016 to 5 April 2017. (Some employers may be unsure as to what their exact number of employees will be as at April 2017, whether they will be caught by the Regulations or may be considering reporting on a voluntary basis.) Therefore, it is important to be planning now for this new law!

How EEF can help?

In practical terms, we understand that the arrival of gender pay reporting brings another compliance requirement to the table for most companies who fall within the scope of the new Regulations.  EEF can support you with gender pay reporting according to your needs, whether that involves a full spectrum oversight of the reporting process and actions to respond to your gender pay information or targeting a specific area of concern, such as internal and external communication of gender pay results.

Our seminar series – “Gender Pay Reporting: How to comply” - will take you step by step through these new legal requirements. We will tell you what you need to do, when, and how best to do it. We will help ensure that your organisation is not only compliant but also shown in the best possible light.   Click here to book your place now.

Author

Legal Compliance Lead

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