From April 2017 organisations in the UK with 250+ employees will need to report the overall gender pay gap between all men and women. This will need to be reported annually, not just on the organisation’s website, but also a dedicated Government website, which means that the information is accessible for everyone to see.
Large businesses should take action now
Although Gender Pay results should be published by 4 April 2018, using a snapshot of base pay as of 30 April 2017, businesses will need to include figures on bonus payments from as early as 5 April 2016. Waiting until the last moment or failing to report Gender Pay will endanger your business to be exposed to negative publicity and creating issues between your employees which could ultimately lead to legal disputes, which can be particularly costly and time-consuming – Equal Pay claims cases can last for years.
In addition there is the danger that you are exposed by the Government reports as they will be publishing league tables of results and naming organisations that fail to report.
The UK gender pay gap is at its lowest level ever. The current Government is committed to ensuring the gap is eliminated within a generation.
Make sure your payroll and accounting system is ready to produce the required information. Contact Synergy Technology if you would like to find out more about accounting applications and payroll systems for your business.
Gender Pay Timeline
6 April 2017:
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 for private and voluntary-sector employers are expected to come into force. All private and voluntary-sector employers with 250 or more employees will be expected to publish information about their gender pay gap results online.
4 April 2018:
Businesses with 250 or more employees must publish the information on your organisation’s website by 4 April 2018. The results must accessible to the public including an accuracy statement. The results must remain on the website for at least three years.
The businesses must upload the gender pay gap analysis results onto the Government’s reporting website.
What is the Gender Pay Gap?
The gender pay gap is an equality measure that identifies the differences in average earnings between women and men. In the UK the gender pay gap is at its lowest level ever at just over 18 %. The gender pay gap does not show differences in pay for comparable jobs. Unequal pay for men and women has been illegal for 45 years.
What are the causes of the Gender Pay Gap?
There are a number of overlapping reasons why a Gender Pay Gap arises including:
- More women choose careers and jobs that offer less financial reward (e.g. administration) and many higher paying professional sectors such as information technology are disproportionately made up of male workers.
- A higher percentage of women work part-time, and in general part-time workers earn less than their full-time counterparts.
- Women are still less likely to progress up the career ladder into higher paid senior and director’s roles.
Synergy Technology is a Pegasus Opera partner and an accredited Microsoft partner. We can advise you on the most suitable accounting and ERP system for your business.