Gender Pay Gap Reporting – The Latest Reports
Large organisations across the UK economy have started to publish reports on their gender pay gap. The reports make sobering reading and reflect the low numbers of women at senior levels.
From public institutions like the NHS and the BBC to law firms and major businesses, gaps are being revealed between the average payments made to men and women.
easyJet is a typical example. In November 2017, easyJet published a 51.71% mean / 45.5 % median pay gap on the hourly rate of pay – a result heavily influenced by the fact that most of the pilots (on larger salaries than other crew and management and administrative staff) are male. easyJet also confirmed that men and women in the same roles are paid the same.
We reported last July on the effects of the BBC's revelations about their gender pay gap. The BBC's woes in this regard have improved little since – particularly following the high profile resignation of Carrie Gracie from her role as BBC China editor after identifying a large difference between her and her male counterparts' salaries.
Recap of the Gender Pay Gap Regulations requirements
Let's recap on the reporting requirements. The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations) force larger companies to report on the pay gap within their organisations.
The Regulations came into force on 5 April 2017 (for the private and voluntary sectors) and on 31 March 2017 (for the public sector). The deadline for organisations to report on their gender pay gap is 4 April 2018.
Private and voluntary sector employers with 250 or more employees must calculate the difference between men's and women's average hourly pay. Employers must then publish the results on their own and a government website.
The six calculations that employers must publish are:
- the average gender pay gap as a mean average;
- the average gender pay gap as a median average;
- the average bonus gender pay gap as a mean average;
- the average bonus gender pay gap as a median average;
- the proportion of males receiving a bonus payment and proportion of females receiving a bonus payment; and
- the proportion of males and females when divided into four groups ordered from lowest to highest pay.
(see the ACAS website)
The Reporting Duty Relates to Gender Pay – Not Equal Pay
Don't forget that this reporting obligation is about revealing the difference in gender pay calculated as an average across a whole organisation. It is not about equal pay.
- Gender pay shows the difference in average pay between all men and all women in the organisation's workforce.
- Equal pay looks at the differences between men and women who do the same or similar jobs or do work of equal value.
You might also want to read a useful Myths "buster" produced by ACAS which only takes a minute or two to read (see the link below).
How To Deal With The Gender Pay Gap
If your business has identified a gender pay gap or you are concerned about the issues, you can read some of the information set out below for help. Or, you could get in touch with one of our employment team for guidance.
For more information about gender pay reporting and equal pay claims, contact Susan Mayall on 0161 684 6948 or make an enquiry.
Sources and Additional Reading
- You can read our checklist for employers on how to comply with the gender pay reporting obligations here.
- ACAS has a useful set of guidance on its website here including guides on Managing gender pay reporting.
- ACAS Top 10 Myths on Gender Pay Gap Reporting
- The BBC gender pay gap - and the call for businesses to equalise pay
- easyJet's gender pay report
- BBC article, 16 February 2018
Please note that the information and opinions contained in this article are not intended to be comprehensive, nor to provide legal advice. No responsibility for its accuracy or correctness is assumed by Pearson Solicitors and Financial Advisers Ltd or any of its members or employees. Professional legal advice should be obtained before taking, or refraining from taking, any action as a result of this article.
This blog was posted some time ago and its contents may now be out of date. For the latest legal position relating to these issues, get in touch with the author - or make an enquiry now.