The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the “Regulations”) came into effect on 6 April 2017. Victoria Atkins, minister for women, told parliament on Thursday that while most companies will not see a “dramatic reduction” in their gender pay gaps this year, “progress is being made”. The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the “Regulations”) came into effect on 6 April 2017. The gender pay gap is the percentage difference between average hourly earnings for men and women. Add together the amounts identified under Step 1 (as adjusted, where necessary, under Steps 2 and 3). As outlined in our previous article on this topic, the impact of such gender pay gap reporting will take some time to come to fruition. This will be the number of hours in the contract (or an average, if the number of hours varies). 3.—(1) In these Regulations, “ordinary pay” means (subject to paragraph (2))—. Geraldine Healy, professor of employment relations at Queen Mary University of London, warned that “change is unlikely without external pressure, whether from unions, women’s networks and pressure groups”. Discover further resources and information on gender pay reporting at the CIPD’s dedicated site. The introduction of mandatory gender pay gap reporting is a positive step for diversity, will likely lead to increased transparency and is a welcome development for gender equality. (6) Where the employee is paid on the basis of piecework, the number of working hours in a week for the employee is the number of hours of output work for that employee in the week during the relevant pay period within which the snapshot date falls, determined in accordance with Chapter 4 of Part 5 of the National Minimum Wage Regulations 2015(8). 8. At Mercer, we believe in building brighter futures. All UK employers with 250 or more staff — totalling some 10,500 employers with more than 15m employees — must report pay, bonuses and other data on March 31 for public sector entities and April 5 for private employers on the government’s gender pay website. Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Prepare a comprehensive, legal report providing insight and analysis on the data, including potential justifications and identifying any high risk areas. assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation. Mercer is the only expert in Gender Pay Gap that deploys a multidisciplinary approach of experts in reward, talent/career management, analytics and diversity and inclusion. The mean measure is easily skewed by a few high-earning individuals. Regulation 2 imposes a duty on relevant employers (those 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. Those employees being paid at a reduced rate or nil as a result of being on leave are excluded from the calculation (see the definition of ‘full-pay relevant employee’ in regulation 1). What? (2) The relevant employer must publish the information required by paragraph (1) within the period of 12 months beginning with the snapshot date. (i)any duty of the employee, such as a duty in connection with the role of fire or bomb warden, that is ancillary to the main duties of the employee’s employment; (ii)the location of the employment in a particular area; (iii)the purchase, lease or maintenance of a vehicle; (iv)the recruitment and retention of an employee; and. Particular attention is likely to be needed for bonus given that this metric is pulled out separately and is likely to be challenging to explain as bonus and Long-Term Incentive (LTI) payments rise with seniority, where men tend to predominate. (b)the name and job title of the person who signed the statement required by regulation 14. There are amendments to section 208, not relevant here. Get a peek at what Mercer business leaders and thought experts think. First, a slight caveat: the analysis below uses the data available as of 17 December 2017, new reports are slowly being added and the precise figures are likely to become outdated quickly. For the purposes of these Regulations, ‘employment’ is defined in section 83 of the Equality Act 2010, and includes employment under a contract of employment, a contract of apprenticeship or a contract personally to do work. “Reporting is just the start,” she said, adding that forcing through such structural change “cannot be done overnight”. a firm, or an entity of a similar character, formed under the law of a country outside the United Kingdom. Regulation 11 makes the same provision in relation to median average bonus pay. 172, https://www.gov.uk/government/consultation/closing-the-gender-pay-gap, the original print PDF of the as enacted version that was used for the print copy, lists of changes made by and/or affecting this legislation item, confers power and blanket amendment details, links to related legislation and further information resources. This is a draft item of legislation. You must publish within 12 months of the 5 April snapshot date each year. in a manner that is accessible to all its employees and to the public; and. Last year just 48 per cent of employers provided an action plan, according to the government estimates. See how we can help with your Gender Pay Gap reporting & D&I strategy on our What We Do page. The Bill proposes to require employers to carry out pay reviews, applicable to both full and part-time employees, and for the publication of the results for companies with 50 employees or more. Government confirms details of mandatory gender pay reporting. B is the median hourly rate of pay of all female full-pay relevant employees. It gave companies with 250 employees or more one year to publish a gender pay gap report. The Bill will move through the Oireachtas alongside the Irish Human Rights and Equality Commission (Gender Pay Gap Information) Bill, a private members bill which is currently before the third stage of Dáil Éireann. Section 10(2) was amended by paragraph 4(2) of Schedule 7 to the Finance Act 2008 (c. 9). Determine the number of hours worked. the average number of working hours calculated by dividing by twelve the total number of the employee’s working hours during the period of twelve weeks ending with the last complete week of the relevant pay period, or. Calculate the gender pay gaps and salary quartile information necessary for compliance with the Regulations. (3) In determining for the purposes of this regulation the number of days in the relevant pay period or bonus period where those periods are (or are determined by reference to) a month or a year—. However, publishing adverse gender pay gap information could also have a number of significant and harmful implications for companies including: PwC Legal working in conjunction with PwC data analysts and reward specialists can assist companies by providing legally privileged support, which will: In addition to helping clients with ongoing mandatory reporting obligations, PwC Legal’s reporting, discussions and action planning can take place in a confidential and legally privileged manner. In addition, employers will be required to report on the number of men and women working within salary quartiles. (a)a month is treated as having 30.44 days; (b)a year is treated as having 365.25 days. (2) The proportion of female relevant employees who were paid bonus pay must be expressed as a percentage of female relevant employees and is to be determined as follows—, A is the number of female relevant employees who were paid bonus pay during the relevant period; and.
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