As we reported recently, the deadline for publishing gender pay reports is looming.
Despite this, some employers have still not complied with this obligation. This has led the Equalities and Human Rights Commission (EHRC) to send out a clear warning to employers who are not on track to meet the deadline – a failure to comply will mean they could be facing considerable fines and reputational damage. Both of which every organisation wants to avoid at all costs!
What is the nature of the gender pay gap reporting obligation?
Private sector and voluntary sector employers with 250 or more employees in England, Wales and Scotland are required to publish their first gender pay report by 4th April 2018. The public sector must do so by the 30th March 2018.
The gender pay gap reporting obligations mean that employers need to publish the following information:
- The gap between the mean and median average hourly pay rates for male and female employees
- The gap between the mean and median average bonus paid to male and female employees
- The proportion of male and female employees who were given bonuses in the previous 12 month period
- The proportion of men and women in each quartile pay band (lower, lower middle, upper middle and upper quartiles).
This information needs to be published on the company’s website and it must also be uploaded to the government’s website. It must include a statement that confirms the accuracy of the information and must be signed by the appropriate person, for example, the most senior employee.
What happens if you do not comply with the obligation?
As we enter the final countdown, there are still a number of employers who haven’t yet complied with their gender pay reporting obligation. The EHRC will be writing to all organisations that fail to publish their report within the deadline and organisations will be provided with a 28 day period to comply with this obligation. If a private or voluntary sector employer continues to not publish their gender pay report, an investigation will be carried out to ascertain whether they have committed an unlawful act. An employer will then need to prepare an action plan.
Ultimately, if it is found that you have not complied with the law, you could face an unlimited fine!
So don’t delay and make sure that you publish your gender pay report before the deadline. If you have any questions, contact your Employment Law Adviser who can give you guidance.
