Regulations on gender pay reporting are rumoured to be published soon along with a response to the Government’s consultation, which concluded in September 2015. The regulations are due for implementation on 1 October 2016 with the first mandatory reporting deadline expected around April 2018.

Uncertainty remains about the scope of the regulations although it is now expected to include the public sector as well as the private and not-for-profit sectors. The 250-employee threshold is likely to be retained but implementation may commence on a phased basis with larger employers caught first, although the impact on complex corporate structures and multinationals is still unclear.

The real interest for employers is what they will have to report. In particular, while basic pay might be easiest to measure, it may not give a realistic reflection of actual pay unless it covers variable pay. However, this would significantly increase the difficulty (and burden on employers) of preparing the report. The Government has announced that bonuses will be included but it is not clear about other variable elements such as overtime premia, unsocial working payments and shift allowances.

Mandatory reporting has been introduced as the voluntary approach failed to effect material change. Whether it will succeed remains to be
seen.

Richard Linskell, Gunnercooke LLP