There has been much reporting in the media concerning the government’s decision to force employers with 250 or more staff to report their overall mean and median gender pay gaps every April.
To this extent, draft regulations have been published as part of a consultation into the new provisions, with the aim of implementing them by 1 October 2016.
As Nicky Morgan MP says in the introduction to the consultation document:
“Tackling the gender pay gap is an absolute priority for this Government, as the Prime Minister has said; you cannot have true opportunity without real equality. We have made significant progress in recent years with the current gender pay gap the lowest on record, but we are not complacent. There is no place for any gender pay gap in today’s society - fully capitalising on the talent and experience of women is good for individuals, employers and our economy. That is why this government is taking bold steps to tackle the gender pay gap”
The draft legislation provides:
Reporting is only required for employers who have 250 or more employees Those required to report will not have to do so until 18 months after the introduction of the regulations. The legislation is due to come into effect on 1 October 2016 meaning that the first reports will not be due until April 2018 Employers will be required to publish details on their website with a written statement confirming that the information is accurate.There are many questions to be answered such as:
What is the definition of pay? What is meant by an employer – i.e. are associated employers treated as one or are they dealt with separately? Will the government move to lower the bar from 250 employees at some point in the future?The consultation closes on 11 March 2016 and we urge interested parties to respond to the consultation.
