If you are an employer with 250 employees or more, new legislation introduced this year requires you to publish your gender pay gap data annually. There are two sets of regulations dealing with the reporting; the first is largely for the private and voluntary sectors and the second is primarily aimed at the public sector (which took effect from 31 March 2017).
The deadline for reporting is 4 April 2018 for private and voluntary sectors, or 30 March 2018 for public sector employers. It is the employer's duty to comply with the regulations in any year where they have 250 or more employees on 5 April (for private and voluntary sector regulations) or 31 March (for public sector employers).
There is a wide definition of who should count as an employee: Workers are included, as well as some self-employed people. Agency workers are also included but will counted by the agency providing them as opposed to the place of work. The mean and median gender pay gap must be submitted, along with the difference in bonuses given to male and female workers as well as the number of males and females in each pay grade. These measures laid out by the Equality and Human Rights Commission, are open for consultation until 2nd February.
The Office for National Statistics has stated the gender pay gap for all employees in the UK is 18.4 percent, and 9.1 percent for full-time employees. It is clear from some of the figures that have been published that some employers have much bigger gender pay gaps than others.
Gender Pay Gap Penalties
UK companies that fail to comply with the reporting regulations could face severe penalties in the form of "unlimited" fines and convictions, which will be issued by the regulator enforcing them. Employers will have an option to enter into a formal agreement to comply with regulations as an alternative to an investigation being initiated. Those who have breached the regulations who refuse to accept an agreement will be pursued through the courts. The EHRC said that, while it would not check the accuracy of data itself, incorrect information would qualify as a breach of the regulations. Published data must be signed off at a senior level by employers, but the government does not check the information.
The gender pay gap issue has been in the spotlight for some time after the BBC disclosed a 10.7 percent gap in favour of male employees last summer. This led to a huge row which saw the recent resignation of the BBC's China Editor Carrie Gracie resigning, calling the scandal a 'crisis of trust'. Gracie has worked for the BBC for thirty years, is widely respected among her peers and is regarded as of as one of the BBC's most talented journalists.
Figures released by the Government departments show some startling figures, with a number of departments showing men being paid significantly higher rates on average than women. In the Department of Transport, men are paid 16.9 percent more than women at the department and also receive bonuses. The Department for Exiting the European Union has a gap of 15.26 percent, and at the Department of Health, it is 14.2 per cent, both in favour of male workers. Bonuses at the Department of Health are a hefty 33.1 per cent higher for men.
Discrimination in the workplace is a serious issue. It can undermine morale, harm productivity and, if not nipped in the bud, lead to expensive and troublesome legal action. If you are an employee who feels discriminated against, or are an employer facing issues regarding discrimination in the workplace, our employment solicitors can help.
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This article is intended to be no more than a general guide, and does not comprise legal advice. You are strongly advised to take legal advice before making or resisting any application to the Court.
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