The government has published draft Regulations for consultation that will introduce mandatory gender pay gap reporting for large employers. The new Regulations will apply to private and voluntary sector employers in England, Wales and Scotland with at least 250 employees. There will be no additional civil penalties in the Regulations, but the government intends ‘closely monitoring levels of compliance with the regulations during the initial years of implementation’.
Employers will be required to publish both mean and median gender pay gaps every April from 2017 and, in order to produce figures unaffected by hours worked, employers will need to calculate an hourly pay rate for each relevant employee. Organisations will also have to publish the difference between the mean bonus payments paid to men and women and to show the proportion of male and female employees receiving a bonus in the reference period.
Minister for Women and Equalities Nicky Morgan said:
‘In recent years we’ve seen the best employers make ground breaking strides in tackling gender inequality. But the job won’t be complete until we see the talents of women and men recognised equally and fairly in every workplace. That’s why I am announcing a raft of measures to support women in their careers from the classroom to the boardroom, leaving nowhere for gender inequality to hide. At the same time I’m calling on women across Britain to use their position as employees and consumers to demand more from businesses, ensuring their talents are given the recognition and reward they deserve.’