Is your business prepared for gender pay gap reporting? Joanna Gregson of the EHRC has the information you need to get up to speed.
The COVID-19 pandemic has affected us all in different ways, but there is growing evidence of the negative impact it has had on women who already face inequality in the workplace.
Right now, many businesses will be preparing their gender pay gap reports ahead of the deadline of 4 April 2021. In fact, some leaders in the field have already published theirs.
Gender pay gap reporting provides a platform for transparency, accountability and resilience in a time of crisis. That’s why we have confirmed that employers need to publish their gender pay gap data for the 2020/21 reporting year.
Firms should aim to report by 4 April 2021 as usual. However, in recognition of the difficulties that some companies continue to face, we will allow a six-month grace period before enforcement begins. That means that anyone who has not reported by 4 October 2021 will face enforcement action.
Who has to report?
Businesses in England, Scotland and Wales with 250 or more employees must publish their gender pay gap reports on the government’s portal and on the employer’s website.
What do businesses need to report?
Employers need to publish six calculations showing:
- Mean gender pay gap in hourly pay
- Median gender pay gap in hourly pay
- Mean bonus gender pay gap
- Median bonus gender pay gap
- Proportion of males and females receiving a bonus payment
- Proportion of males and females in each pay quartile.
What if a business has furloughed staff?
We know many employers will have furloughed staff on the snapshot date and we have published guidance on how they should be included in their calculations.
Anyone receiving full pay (including furloughed employees whose salaries were topped up to full pay) is a ‘full pay relevant employee’ and should be included in all calculations.
Anyone receiving less than full pay because of being on temporary leave (e.g., they were furloughed under the Coronavirus Job Retention Scheme) is not a ‘full pay relevant employee’ and should not be included when calculating:
- Mean gender pay gap in hourly pay
- Median gender pay gap in hourly pay
- Proportion of males and females in each pay quartile.
Anyone employed by the business on the snapshot date, regardless of whether they were on leave, counts as a ‘relevant employee’ and should be included when calculating:
- Whether you have a headcount of 250 or more employees
- Proportion of males and females receiving a bonus payment
- Mean bonus gender pay gap
- Median bonus gender pay gap.
Maintaining momentum
We know that many employers have been taking concerted action over recent years to reduce their gender pay gaps and harness the benefits of workplace equality. Sadly, the long-term impacts of COVID-19 on women in the labour market will be felt long after this year and could reverse progress. This is why it’s vital to continue the good work many employers have already put in to close pay gaps and to have the data to understand where gaps are widening.
Like the CBI, we strongly encourage employers to develop time-bound, target driven action plans to address their pay gaps. Action plans send a clear commitment on the part of employers that they want to take meaningful steps to address the underlying causes of any gaps. Recognising and most importantly, doing something about gender equality in the workplace creates competitive advantage at a time when employers need it most.
