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Gender pay gap reporting

The Women and Equalities Minister Nicky Morgan announced last week that private companies and voluntary organisations with more than 250 employees will be required to calculate the pay gap between men and women from April 2017. They will also be required to publish this pay information on their websites each year and senior executives will be required to  sign off on the figures personally.

Latest figures suggest that women in the UK still earn on average 20% less than men.

Section 78 of the Equalities Act 2010 can already “require employers to publish information relating to the pay of employees for the purpose of showing whether…. there are differences in the pay of male and female employees”.  Although further government consultation is expected to nail down the reporting requirements, employers will need to focus on ensuring that a full review of their pay systems including an equal pay audit is carried out.

Whilst the legislation will only apply to organisations with more than 250 employees, smaller employers could still face equal pay legal challenges where pay structures are not transparent.

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