Gender pay gap reporting deadline approaching

All organisations with more than 250 employees need to publish gender pay gap figures by 4 April at the latest, warns the Financial Reporting Council (FRC)

Employers with 250 or more employees based in England, Scotland or Wales must report specific figures about their gender pay gap and the deadline for completion of gender pay gap reports is 30 March for public sector organisations and 4 April for the private or voluntary sectors. Partnerships do not have to disclose partner earnings.

So far, 1,346 employers have published their information on the government portal.

When Barclays Bank published its gender pay gap figures for the first time last month it highlighted the mean gender pay gap for fixed pay in the UK bank was 26% and the bonus gap stood at 60%, but the figures were much higher for Barclays International, the investment bank. Here the fixed pay gap was 48%, while the bonus gap was 78.7%.

Barclays International’s pay gap is one of the widest disclosed so far, following the 46% gap at easyJet and the 38% gap at Virgin Money.

How it works

The definition of ‘employee’ for gender pay gap reporting includes:

  • people who have a contract of employment with the organisation;
  • workers and agency workers (those with a contract to do work or provide services); and
  • some self-employed people (where they must personally perform the work).

When an organisation is a ‘relevant employer’ and runs multiple payrolls (for example, payrolls for different departments or business functions), the relevant data from all your payrolls must be merged and reported in one set of figures for the overall organisation.

Private sector organisations that are part of a group must report individually if they are ‘relevant employers’.

Additionally, corporate groups can voluntarily report combined figures for the entire group.

Agency workers or those hired through service companies should not be included in the overall count, as they are part of the headcount of the agency or service company that provides them, not the hiring organisation.

Partners in traditional partnerships and limited liability partnerships (LLPs) should not be included in calculations. This is because partners take a share of the organisation’s profits, which is not directly comparable with employees’ pay.

This requirement to improve transparency of the gender pay divide is part of a wider initiative by the government to promote and improve equal pay across gender.

‘Identifying the gender pay gap is an important step developing workforce of policies and practices which remove these gaps, and create cultures that improve governance and support the long term sustainable success of companies’, the FRC said in a statement.

Before filing a report, organisations have to designate an individual within the organisation as the nominated person responsible for managing the reporting, such as an HR director. This person needs to:

Deadline for completion of gender pay gap report is 30 March for public sector organisations and 4 April for the private or voluntary sectors.

If your organisation has fewer than 250 employees, it can publish and report voluntarily but is not obliged to do so.

As this is the first year of reporting, the government recognises that some employers will have a gap in the first years.

Toolkit on actions to take to close the gender gap is available

Gender pay gap data (2017 to 2018 reporting year) as of 28 February 2018

 

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