Gender pay gap: With pay reviews soon to become mandatory for UK business, our experts take a look at the possible challenges ahead.

In a tough economic climate, the gap between rich and poor inevitably becomes headline news. But behind the headlines another important issue looms large: equal pay for men and women, often referred to as ‘gender pay gap’.

The fact is, despite great advances in employment legislation over the years in terms of diversity/discrimination, the gender pay gap persists – with men, on average, likely to be paid more than women. That’s especially the case in certain types of job, by business sector and number of hours worked (i.e. part-time).

Mandatory reporting – will you be ready?

To help address that issue, the Equality Act of 2010 contained a power for the government to make gender pay gap reporting mandatory for companies and organisations across the UK. Now, as part of a package of reforms announced in March this year, it looks likely that the proposed power will come into effect.

Although the details are still to be confirmed, the implications for relevant companies and organisations (any company with 250 employees) are clear:

  • You may be required to carry out an equal pay review (or audit) annually.
  • You may be required to publish the results of the review, including information any gender pay gap or overall pay gap between positions at all levels of the company, to ensure complete transparency.

The proposed penalty for non-compliance is £5,000 – but it could cost companies dear in other ways like backdated claims for equal pay by employees, a damaged corporate reputation or even implication for staff attraction and retention.

Preparing for compliance – we can help

Pay equality is a major issue for employers. And with mandatory reporting coming into force, staying on top of it – from handling the equal pay audit to addressing equality issues overall in the workplace – will become a must.

With years of experience and wide-ranging expertise, Ashworth Black can help your company make sure it’s complying with legislation – both now and in the future – leading to a culture of equality.

Speak to us today about equal pay audits and creating an effective pay-reward culture.

Call 01506 828 767, email or click here to Contact Us.