Mind the Gap, Part II: Act Urgently on UK Gender Pay Gap Reporting
If you haven’t acted to submit your UK employee gender pay gap report, you probably aren’t alone: media reports suggest that only 1/6 of expected businesses have filed the required report. But covered businesses should not take a “safety in numbers” approach. With time until the deadline quickly running out, and the UK’s Equality and Human Rights Commission warning that it will be “fully enforcing” against non-compliant businesses, now is the time to prepare for the 5 April 2018 deadline.
As we said in Mind
the Gap, organisations with a “headcount” of more than 250 people in the UK
will need to file an annual statement setting out certain data about the gender
pay gap (i.e., the difference between the average earnings of men and women
working in the organisation).
The data required is detailed, and some thought
will need to be given to the calculations (further explanation is available here).
Some of the rules may be counterintuitive — for example, businesses are used to dealing
with part-time and job-sharing workers in ‘FTE’ calculations, but will now need
to count these workers individually for the purposes of their gender pay gap
reports. Another issue is the partner remuneration, which, depending on the
particular partner’s role in management and stake in the business’s finances,
may need to be included in the report.
The deadline is near, and the penalties for
non-compliance include an unlimited fine. Businesses should act now. Your usual
Vinson & Elkins contact will be pleased to assist you with any issues
relating to UK gender pay gap reporting.