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Draft Legislation Published on Gender Pay Gap Reporting

Last Friday the Government Equalities Office published a response to its “Closing the Gender Pay Gap” consultation, which was launched back in July 2015. It also published a “Mandatory Gender Pay Gap Reporting” consultation, which includes a draft version of The Equality Act (Gender Pay Gap Information) Regulations 2016, which sets out the requirements for gender pay gap reporting.

Compulsory gender pay gap reporting follows the failure of the “think, act, report” voluntary approach. The government estimates that the gap between male and female pay is currently at 19.1%, meaning that women earn approximately 80p for every £1 that is earned by men.

The draft regulations detail the specific requirements for gender pay gap reporting. The requirements will be mandatory for all employers in Great Britain with at least 250 employees. Such employers will be required to publish information including: the difference in mean and median pay, between male and female employees; the proportion of male and female employees who received bonus pay during the 12 months previous up to the relevant date (30 April 2017 and each subsequent anniversary of that date); and the number of male and female employees who are employed in four quartile pay bands. This information must be published within 12 months of the relevant date.

There are also requirements for the form and manner in which that information must be published.

The closing date for responses to the consultation is 11 March 2016. The legislation is intended to come into force in October 2016 with the first reports to be published from 30 April 2017. 

This bulletin is for general guidance purposes only and should not be used for any other purpose.

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