23 / 9 / 2016 2pm
The government has released its consultation on proposed mandatory gender pay gap (GPG) reporting for large public sector employers with 250 or more employees. The consultation which runs until 30 September 2016, sets out how the government intends to amend the specific duties regulations, which underpin the Public Sector Equality Duty (PSED).
This is your chance to have a first look at how it is proposed to implement these requirements and employers are encouraged to respond to it directly online. Please see the consultation document or complete the consultation here.
Since The Equality Act 2010 Specific Duties Regulations 2011 (SDR) came into force on 10 September 2011, there has been a duty for public bodies with 150 or more employees to publish information on the diversity of their workforce. Although the SDR do not require mandatory GPG reporting, the Government Equalities Office (GEO) and the Equality and Human Rights Commission (EHRC) provided guidance that made it clear that employers should consider including GPG information in the data they already publish. However not all employers currently do this, hence making this mandatory by amending the SDR.
All public sector organisations with more than 250 employees will be required to publish GPG information.
What will employers have to do under the new requirements?
Employers will need to publish the following information annually online and keep the information online for three years for all employees who are employed under a contract of employment, a contract of apprenticeship or a contract personally to do work. This will include those under Agenda for Change terms and conditions, medical staff and very senior managers.
The gross hourly rate will need to be calculated for each employee to provide a snapshot of all employees that are employed on 5 April 2017 (and each year thereafter). The hourly rate includes:
- basic pay
- paid leave, including annual, sick, maternity, paternity, adoption or parental leave (except where an employee is paid less than usual because of being on leave)
- area and other allowances
- shift premium pay
- pay for piecework
- bonus pay.
From this information, they will need to publish the following:
- The overall mean and median gender pay gaps.
- The difference between the mean and median bonus payments paid to men and women. Employers will need to analyse all bonus payments made in a twelve monthly period and publish the difference between women and men and will be required to publish the proportion of male and female employees that received a bonus.
- They will also be required to report on the proportions of men and women in each quartile of their pay distribution. The quartiles will split an ordered data set into four equal groups by number, where each group contains one quarter of the total number of employees.
Further actions are as follows:
- The above information will need to be published no later than 4 April 2018 for the 2017 snapshot.
- The information must be published on a website that is accessible to employees and the public free of charge.
- The EHRC will be responsible for monitoring how public bodies are complying with the GPG reporting requirements and can take enforcement action.
More guidance will be provided by the government when the regulations come into force, which will give more tailored information on what will be covered in the reporting requirements.
How will NHS Employers help?
NHS Employers will further liaise with the government following the publication of its response to the consultation.
NHS Employers will also engage with the NHS Staff Council equality and diversities group (EDG) to consider whether the existing equal pay toolkit is capable of measuring what is required, such as:
- calculating hourly rates of all employees employed at 5 April by gender and then calculating the gender gap
- calculating the proportions of women and men in each quartile of their pay distribution, the quartile being calculated by number rather than salary range
- calculating the mean and median bonus payments made to men and women.
This work is planned to take place in Autumn 2016. The EDG will need to consider making changes to the toolkit if it cannot calculate the above and publicise how it can assist employers with the snapshot of information and what action should be taken when the results are known.