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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. 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.

This information is provided by Vinson & Elkins LLP for educational and informational purposes only and is not intended, nor should it be construed, as legal advice.