Mind the Gender Pay Gap

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Employment Law legislation is constantly evolving, and never more so than in these post-pandemic times. As from 5 October 2021 enforcement action will be taken against employers who fail to report their gender pay gap information for the year 2020/21. Here is all you need to know…

The Equality and Human Rights Commission (EHRC) usually require all public and private companies to report their Gender Pay Gap by April. However, during the coronavirus pandemic the EHRC offered a six-month extension on this date, which is now set to end on 5 October.

Reporting your Gender Pay Gap

It is a legal requirement for all relevant employers with over 250 employees to publish their gender pay gap information by 11.59pm on 5 October 2021. You must report the details from your payroll as they were on the 31 March 2020 or 5 April 2020 – these are termed ‘snapshot dates’.

Where do I publish pay gap data?

You must publish your pay gap data on your own website and through the government gender pay gap reporting website.

Why do I have to report on my company’s gender pay gap?

The reported data examines the gender pay gap in Britain, defined as the difference in average hourly pay between men and women. The final EHRC published report highlights:

• The size of the gender pay gap
• The features of the gap and how it varies by characteristics
• The key causes of the gap

Using the data provided the report will address what needs to change and a propose a strategy for reducing pay gaps in Britain. Having a gender pay gap does not necessarily mean that unlawful discrimination is happening.

Publishing and monitoring pay gaps will help employers understand the reasons for any gap and consider whether an action plan should be devised to tackle the causes. For example, if women are mainly at lower-paid levels in your company, the employer may decide to develop an action plan to encourage and support more women to apply for senior roles.

Failure to Report

EHRC has the power to take enforcement action against any employer who does not comply with their reporting duties, conducting an investigation to confirm whether you are breaching regulations. If this is the case, it will seek a court order requiring you to remedy the breach. Failure to comply with this will be an offence, punishable with an unlimited fine if you are convicted. Details of those employers investigated will also appear publicly on the EHRC website.

Does your business need advice regarding employment law changes? Our expert team will offer guidance to ensure that your business is fully compliant. Call 01538 399199 or email info@bowcockpursaill.co.uk  to find out how we can help.