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Gender pay gap reporting – an update

New legislation will force employers with more than 250 employees to publish information about gender pay discrepancies in their organisations, with a league table ranking large firms by gender pay gap.

As well as looking at overall salary disparities, affected employers will also be required to publish bonus information, showing any gap between the average bonus payments paid to men and women over a 12-month period, as well as the proportion of male and female employees that received a bonus.

What you can do now to prepare

Despite the latest delay by the government on this issue – with female employees now having to wait until 2018 to find out if they are paid less than their male counterparts – there are still issues employers need to be aware of before the introduction of the legislation.

While the first gender pay gap reports will not need to be published until April 2018, the new regulations are likely to come into force on 1 October 2016. As such, employers will be required to have a snapshot of their gender pay gap data prepared for 30 April 2017, and publish their first gender pay report within 12 months of that date.

The mandatory reporting of inequalities will increase employers’ exposure to equal pay and discrimination claims. Therefore, it is vital that businesses conduct a review of their employment contracts – including considering undertaking equal pay audits – as soon as possible to establish and resolve any areas of risk.

Despite the two-year breathing space, to avoid equal pay or discrimination claims, we encourage employers to take proactive steps now to prepare for the legislation and minimise the legal and commercial risks to their businesses.

If you are concerned about the impact of this legislation on your business, or any other employment law issue, please contact Linder Myers today on 0161 837 6807 or email alan.lewis@lindermyers.co.uk

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