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ACAS and the Government Equalities Office have published some new guides and factsheets, including a very helpful notification template, for use by employers who are subject to the forthcoming gender pay gap reporting obligations.
The guidance examines what the gender pay gap is and how workplaces contribute to it. It notes that the gap tends to be higher in industry sectors such as finance, energy and construction sectors, and lower in sectors such as public administration, support services and health and social work. It then explains how gender pay reporting should be carried out, detailing the following 5 steps which employers should take:-
• extract the ‘essential information’, i.e. the pay, bonuses and weekly working hours of its male and female employees;
• carry out the necessary calculations;
• make a supporting statement to confirm that the published information is accurate;
• publish the information; and
• implement plans to manage the gender pay gap, e.g. developing initiatives to encourage female mentoring and development.
The first 4 steps are obligations imposed by the new Regulations. The final step is not a legal requirement but is considered by ACAS and the Government to be best practice.
One of the problems with the Regulations as currently drafted is the absence of sanctions for non-compliance. The Government has already said that it will establish a database of non-compliant employers.
The authors of this guidance perceive that employers will run a reputational risk if they fail to comply.
If you need employment advice speak to Ramsdens Employment team, we're here to help you and your business.