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Final gender pay gap reporting regulations published

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The Government have finally published the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 which will be laid before Parliament with the intention that they come into force on 6 April 2017.

The Regulations impose obligations on employers with 250 or more employees to publish information relating to the gender pay gap in their organisation. The key provisions of the Regulations are set out below. However, they are very complex, particularly those provisions which specify methods of calculation, and employers are advised to seek legal advice in order to ensure that they fully comply with the new requirements.

Regulation 2 imposes a duty on employers with 250 or more employees on the 5th April of a given year to publish specified information relating to the difference in pay between male and female employees. Further detail about how the information is to be expressed is set out in regulations 8 to 13. The information must be published within the period of 12 months beginning with the ‘snapshot date’ of 5th April each year.

Regulations 3 to 5 define ‘ordinary pay’, ‘bonus pay’, ‘pay period’ and the ‘relevant pay period’. Regulation 6 determines how to calculate an employee’s hourly rate of pay, and Regulation 7 sets out how to determine the number of working hours in a week.

Regulation 8 sets out the way in which an employer must calculate the difference between the mean average hourly rate of pay of male full-pay relevant employees, and that of female full-pay relevant employees. Regulation 9 makes the same provision in relation to the median average hourly rate of pay.

Regulation 10 sets out the way in which a relevant employer must calculate the difference between the mean average bonus pay of male employees, and that of female employees. Regulation 11 makes the same provision in relation to median average bonus pay.

Regulation 13 sets out the way in which employers must determine the proportions of male and female full-pay employees in each of the lower, lower middle, upper middle and upper quartile pay bands.

Regulation 14 requires the employer to make and sign a written statement to confirm that the information published in accordance with Regulation 2 is accurate and Regulation 15 requires that the information must be published on the employer’s own website for at least 3 years from the date of publication, and must also be published on a website designated by the Secretary of State.

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The aim of this update is to provide summary information and comment on the subject areas covered. In particular, where employment tribunal and appellate court cases are reported, the information does not set out all of the facts, the legal arguments presented by the parties and the judgments made in every aspect of the case. Click on the links provided to access full details. If no link is provided, contact us for further details.  Employment law is subject to constant change either by statute or by interpretation by the courts. While every care has been taken in compiling this information, SM&B cannot be held responsible for any errors or omissions. Specialist legal advice must be taken on any legal issues that may arise before embarking upon any formal course of action.

 

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