Cedar Employment | Gender pay gap
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Gender pay gap

29 Jul Gender pay gap

Aimed at increasing transparency and, thereby reducing the gender pay gap, the government has published a consultation on its plans to introduce mandatory reporting of information on gender pay differences for larger employers (250 employees). Employers have an opportunity to help shape these important regulations by responding to the consultation.
Data from the Office for National Statistics (ONS), not only confirms a clear UK gender pay gap, between men and women for both full and part-time employees, but that this presently stands at a figure of 19% albeit the lowest since records began in 1997. The same data highlights a slightly higher figure of 25% in the private sector alone.

Employers will face a number of potential challenges in dealing with the government’s proposals including assessing whether existing systems are able to collect the necessary gender pay data, and, if not, the administrative burden of ensuring that they do so. Also, it is not clear as to what specific information or detail will need to be disclosed to whom, when and how in order to meet compliance requirements.

The consultation closes on 6 September 2015 with draft regulations expected to be published in the first half of 2016, although this may be delayed to give employers time to prepare. Larger employers may therefore now want to start thinking about whether more systematic monitoring of gender pay differences will help them prepare for the new disclosure obligation, including whether an equal pay audit might identify any potential gaps.

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