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Prettys Solicitors Ipswich

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Businesses warned to consider the implications of gender pay gap reporting

With the draft regulations for gender pay gap reporting now published and expected to come into force on 1st October 2016, employers now need to look at their existing pay reporting systems and understand where gender pay gaps exist within their organisation or risk damaging their reputation.

There is always uncertainty when new regulations are introduced and, with this in mind, we are hosting a free 30 minute webinar on Thursday 7th July for employers and HR professionals to understand what their legal obligations are and ensure their business will be able to comply.

Currently, both basic pay and bonuses will be need to be accounted for but there is still no guidance on how employers might calculate hourly pay rates for irregular working patterns, maternity or parental leave or sickness absence. Employers will have to publish their first report by April 2018, based on their pay data as at 30th April 2017.

It is important that employers understand that in addition to the risk of equal pay claims, the reputation of a company could also be called into question affecting its ability to retain and recruit staff.

Kelly Sayers, Head of Employment Law at Prettys commented, “Any negative publicity stemming from gender pay gap reporting may have a significant impact on an employer’s reputation and proactive employers therefore have an opportunity to investigate and improve any gender pay gaps now, before disclosure is required and in turn reduce any legal and commercial risks.”

Initially only businesses with 250 or more employees will have an annual obligation to publish their gender pay gap figures. Whether businesses choose to undertake a full audit of the pay arrangements or realign their reporting systems, the most important factor is ensuring that they are prepared for the new regulations. The government has stated that it will run periodic checks to assess for non-compliance and could potentially “name and shame” those employers who do not comply.

For more information, to register for the free gender pay gap reporting webinar, or to find out about the full employment webinar programme, log onto http://www.prettys.co.uk/employment-law-webinar.

Kelly Sayers, Head of Employment Law

Kelly Sayers, Head of Employment Law

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