Gender Pay Gap Reporting

Gender Pay Gap Reporting

The UK left the EU on 31 January 2020. A transition period, during which EU laws continue to apply in the UK, is due to end on 31 December 2020. The UK/EU Withdrawal Agreement sets out transitional arrangements and negotiations for the future UK/EU relationship are ongoing.

Employers with 250 or more employees will be familiar with the requirements to publish figures that show the pay gap between their male and female employees. However, addressing the gender pay gap is about more than just reporting statistics: the focus is shifting towards identifying and acting upon issues and trends identified in these reports. Increasingly businesses will be scrutinised on the strength of the narratives they publish with their statistics explaining the data and the steps being taken to address any issues arising, and any action plans of how they intend to tackle any gender pay gap. With a proper understanding of the underlying data and a clear plan the potential impact on reputation, recruitment and retention can be minimised. 

We advise companies on complying with all gender pay gap reporting obligations, producing narratives to accompany their statistics, developing and implementing action plans, and dealing with any related legal, HR and operational challenges. Download our -Point Action Plan here, which focuses on the practical aspects of gender pay gap reporting.

We can help our clients prepare by:

  • Assessing whether they are in scope
  • Advising on difficult issues in calculation, such as treatment of non-standard employees, or impact of long-term incentive plans
  • Carrying out confidential and privileged gender pay gap audits, based on anonymised data
  • Producing reports; illustrating the figures in an easily digestible, visual format; and advising on any issues and legal risks arising
  • Advising on narratives and action plans
  • Advising on any additional analysis and solutions that can address the gender pay gap and create value for their business
  • Navigating wider HR issues such as hiring, promotions, pay practices and appraisals in line with their gender pay gap position

The extended version of this video is available here.

Equal Pay has been on the statute books since the Ford Dagenham Seamstresses took up the gauntlet and won in the late sixties. However, until recently Equal Pay had been the viewed as the poor relation on the battleground of pay disputes.

Equal pay is about ensuring men and women are paid the same for equal work meaning like work,  work rated as equivalent, or work of equal value. Whilst Equal Pay claims frequently go hand in hand with wider sex discrimination complaints, they are less common because they are limited in scope to purely contractual pay and benefits – basic pay, holiday pay, car allowances and rare contractual bonus/ commission schemes.

The introduction of mandatory gender pay gap reporting pay may lead to resurgence of interest in this area. Certainly, the publication by employers of data showing significant gender pay gaps will inevitably fan the flames in this direction.

We advise both employers and employees on perceived contractual inequalities relating to often highly complex pay and reward schemes. Our focus remains on identifying issues early and seeking to resolve them without recourse to litigation where possible.

To view our seven-point action plan, designed to focus on some of the key practical aspects of gender pay reporting, click here.

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