8,000 Companies To Be Forced To Highlight Differences In Pay By 2018

The Government has today announced plans which set out the framework for the new gender pay reporting requirements.

The draft Equality Act Regulations 2016 have been published and state that companies with more than 250 employees will have to start collecting data on gender pay gaps from April next year.

The change in employment law, probably the most significant this year, will mean that organisations will have to publish the information on their websites by April 2018.

Employers will be required to publish mean and median pay information and highlight how many men and women are in each quartile of pay.

The new rules are expected to come into force in October this year and it is estimated that about 8,000 employers across the UK will be affected.

Nicky Morgan, the Equalities Minister, 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.”

The draft regulations are open for consultation until 11 March 2016.

Expert Opinion

“Many employers recognise that gender pay gap reporting is a new and important step towards full pay equality which is a key issue for all employers. Irwin Mitchell will be working closely with our clients to ensure that they meet their reporting obligations and if concerns are identified, we will use our expertise to support them in rectifying them.

“We recognise that businesses need to attract and retain the best talent in order to succeed and grow and this is one of the tools they will need to use to do so, in the coming years.”
Samantha Clark - Solicitor