12 February 2016
Yesterday the Government published the draft The Equality Act (Gender Pay Gap Information) Regulations 2016 and their response to consultation in relation to ways in which the gender pay gay can be eliminated.
See the following link for further info: Closing the Gender Pay Gap - Government response to the consultation
The response states that the Government intends the changes to come into force in October 2016 (with the first reports to be published in April 2017). Draft Regulations set out the framework for the new gender pay reporting requirements.
Employers will be required to publish mean and median pay information from the whole workforce. The report should also include the number of men and women in each quartile of pay in the workforce. The information is to be published on the employer's website each year, and left there for at least three years. The response suggested that those employers who fail to comply with the rules may be published and potential penalties for non-compliance are being considered.
The draft Regulations are open for consultation until 11 March 2016.
This is an important cultural change within our society and is aimed at introducing greater transparency in relation to pay. It remains to be seen the effect this will have but affected employers should begin to consider how this will impact upon them and be prepared to comply given the consequences of failure.
To discuss further please contact one of our BTO employment lawyers on 0141 221 8012.