The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 are due to come into force on 6 April 2017. You will recall that these Regulations will apply to large private and voluntary sector employers with over 250 employees. If your company falls within the definition, you will be required to analyse your gender pay gap each April, and publish the compulsory statistics within 12 months. The report will need to be published on your own website and uploaded to a government-sponsored website.

The text of the final Regulations have now been released and the Government have sought to clarify some of the concerns that were originally raised. The key clarification areas to note are as follows:

Who to include in your report?

Although it may feel like it will now include everyone, the exemptions will ensure that your gender pay gap is not distorted, where for instance you had a large number of female employees absent on statutory maternity pay at the snapshot date, and this was taken into account rather than their normal rate of pay.

How to calculate the report?

Finally the Government has taken action to ensure that an annual bonus, paid within the relevant pay period, is not included as a whole when calculating the mean and median pay gap. This annual figure could have distorted your figures dramatically.

When is the snapshot date?

All these changes are welcomed so that employers can be clear as to what is expected of them. The Explanatory Notes to the amended draft Regulations also suggests that failure to comply with this law will constitute an ‘unlawful act’. Though what this means and the suggestion itself is not contained in the Regulations.

If you require any clarification on whether this provision will affect your business or legal assistance with gathering the correct information, then please call me or a member of our employment team on 023 8048 2482.

Click here for the revised draft regulations.