This month a new requirement comes into force that necessitates the gender pay gap being published within the next year – and every subsequent year. It applies to both private and voluntary employers with 250 or more employees and any employer failing to comply by April 2018 will be contacted by the Equalities and Human Rights Commission.
Gender pay is the difference in average pay between the men and women in a company and is different from equal pay - which means men and women must be paid the same for equal or similar work.
Sam Smethers of the Fawcett Society, which lobbies for gender equality, says that this new rule is “...the most significant legal change since the Equal Pay Act”.
The rules will be enforced by the Equality and Human Rights Commission and the companies affected must publish details on their own websites and through the government gender pay gap reporting website. They are obliged to provide data about their pay gap; the proportion of male and female employees in different bands; the gender bonus gap and a breakdown of how many men and women get a bonus.
A new study by TotalJobs points towards the fact that a significant number of employers are unprepared for the new requirements. The survey of 145 employers found that 82% were not reviewing their gender equality and equal pay policies as a result of the new legislation, whilst 58% did not have complete salary information across roles and gender. A third of employers were not reassessing remuneration as a protection against gender discrimination.
MP Justine Greening stated, “I am proud that the UK is championing gender equality and now those employers that are leading the way will clearly stand out with these requirements.” She added that the government would prefer to work in partnership with employers on conformity rather than imposing sanctions. “......we’ll keep an open mind about whether we need to go further in terms of regulations and sanctions, but the important thing is to win over hearts and minds.”
The Equality and Human Rights Commission stated on their website that where they had evidence that companies were not publishing the data, they will take steps to make sure that they do, by improving companies’ awareness and understanding of the new requirement.
Research by the Commission has found that there are still substantial pay gaps throughout Britain. This year, they intend to publish a report that will help employers to look at possible causes of their pay gap and suggest action they can take to improve it. In addition, they will make recommendations to the government to help close the gender pay gap across Britain.
The Women’s Equality Party have said that the current proposals do not go far enough and that businesses should be leading the way in tackling the complexity of the gender pay gap.
