Gender pay gap reporting

In 2018, organisations across the UK with 250 or more employees published their gender pay gap data for the first time.

Unsurprisingly many organisations disclosed they have a gender pay gap, with the average being approximately 18%. However the figure is significantly higher in certain sectors and organisations, resulting in the UK having one of the highest gender pay gaps in Europe.

A number of businesses have made public statements on what actions they are taking to close their gender pay gaps, although we will have to wait and see whether these actions will actually result in a significant reduction in the gender pay gap during the next couple of years.

In light of the first gender pay gap reports earlier this year, the House of Commons’ Business, Energy and Industrial Strategy (BEIS) Committee has reviewed the statistics and has published its own report on gender pay gap reporting.

In summary, the BEIS Committee has called on the Government to do more to ensure the gender pay gap is closed sooner and has made a number of recommendations:

• Extending gender pay gap reporting to organisations with 50 or more employees.

   

• Mandatory explanations from businesses if there is a gender pay gap.

   

• Clarification on whether partner and bonus remuneration should be included in gender pay gap reporting.

   

• Provide the Equalities and Human Rights Commission with specific enforcement powers if a business is non-compliant.

Equality and equal pay continues to have a high amount of media coverage and therefore it is imperative businesses get it right when they pay their employees otherwise an employer may be exposed to a potential discrimination claim in the Employment Tribunal.

Firms looking for advice on HR and employment law issues relating to discrimination, equal pay and gender pay gap reporting can speak to Miss Sally Morris via 01905 610410 or email sally.morris@mfgsolicitors.com.