The magazine for Aycliffe Business Park | 15
MIND THE GAP
– THE GENDER PAY GAP
The Equality Act 2010 ( Gender Pay Gap Information ) Regulations 2017 which come into force on 6 April 2017 , subject to Parliamentary approval , are the most talked about Regulations this year , with a new Gender Pay Gap Reporting requirement for employers with over 250 employees .
Endeavour Partnership ’ s Laura Kirkpatrick brings us more details ...
What is the Gender Pay Gap ? It ’ s important to highlight that the Equal Pay regime , where men and women must be given equal treatment for doing comparable jobs , introduced over 45 years ago and the Gender Pay Gap are different .
The Gender Pay Gap is an equality measure that shows the difference in average earnings between men and women over a period of time no matter what their role is . In the UK the average pay for men is greater than it is for women . Although at its lowest since 1997 , the Gender Pay Gap between men and women is currently 18.1 %.
What are the causes of the Gender Pay Gap ? The causes of the Gender Pay Gap are complex and can overlap . However , Government and many leading equality activists have identified the following as reasons for the Gender Pay Gap :
• Childcare responsibilities – many women choose to play a greater role in caring for their children and as a result may decide to work part-time meaning they will earn less than their full-time counterparts on average .
• The labour market – it ’ s reported that a higher proportion of women choose occupations that are lower skilled and therefore offer less financial reward . Also many high paying sectors are disproportionally made up of male workers .
• Senior roles – women are still less likely to progress up the career ladder into high paying roles compared with men .
What ’ s being done ? In 2015 the Government vowed to close the Gender Pay Gap and have since taken action by consulting with businesses and the public to introduce the new Regulations .
The Regulations :
• There will be annual reporting every April with the first set of Gender Pay Gap data to be published by April 2018 .
• An employer must comply with the Regulations , for any year , where they have a headcount of 250 or more employees on April 5th .
• An employer must carry out the six basic calculations .
• The data produced must have a written statement by an appropriate senior person .
• The information must be published on the employer ’ s website and a designated government website which is accessible to employees and the public .
What should businesses be doing now ? Although April 2018 may seem a long way off , if your business falls within the GPGR obligations you should take steps now so that you are ready to start collecting April 2017 data .
Planning ahead will also give your business the ability to provide a narrative with its data which can explain the reasons for the results and give details about actions that are being taken to reduce or eliminate the Gender Pay Gap demonstrating your business supports and encourages action .
Are there any consequences ? At the moment , there is no sanction or financial penalty for failing to produce Gender Pay Gap data . However , a failure to report will most likely result in the business being ‘ named and shamed ’, meaning customers , employees and potential future recruits could raise concerns with the businesses support for improving gender equality .
Should I consider the Regulations if I have less than 250 employees ? Absolutely . It has already looked at whether the Regulations should be extended to all businesses and with the increased publicity around the Gender Pay Gap and Equal Pay employers should now review gender equality within their business and take steps to reduce or eliminate it .
What to do next ? If you would like to know more information about Gender Pay Gap Reporting please contact Laura Kirkpatrick , employment solicitor at Endeavour Partnership LLP on 01642 610335 or l . kirkpatrick @ endeavour . law