Last month the new living wage came into force and because of that inequality between pay has also been highlighted.
New legislation has now been announced that will ensure companies with more than 250 employees will have to publish the salaries of their employees in order to see if there has been gender discrimination.
This new ‘name and shame’ technique is being used by the government to put a stop to the unfair and unequal pay. Women being paid less is nothing new, since world war II women have been doing the same jobs as men with less pay. So this new push is hoped to force employers to meet the basic demands and expectations of modern day society.
Whilst smaller companies are exempt from this new law, experts hope there will be huge wave effect. With women demanding their equal pay and standing up against any sex discrimination. This is hoped to be a huge step in fixing the pay gap.
The legislation and guidelines are expected to hit companies by October this year. And by next April a smaller version of the full data is meant to have been prepared. And 12 months after that the full data is legally meant to be published.
The data required by the government does not take into account part time or full time employers or their occupation level. All that is needed is the mean and median pay between male and female employees, the difference between mean and median bonuses received by men and women, and the number of male and female employees according to pay bands.
Along with the data, companies will be allowed to publish contextual data, which would allow them to ‘justify’ gaps if any and show how they will overcome them.
All data will have to be upload to the government website to be analysed and then reviewed.
Although there is no fixed penalty, fine or fee for not complying, the company will be named and shamed, which could adversely affect your business and your reputation. This could ruin customer reputation and incur loss.
Businesses are advised to make preparation to comply and meet a set of good standards in the months remaining between now and the legislation.
If you wish to seek any legal advice around gender pay gap reporting, or simply want to know more, don’t hesitate to call our team on: 0116 2999 199 or alternatively you can email us at: email@example.com