Gender pay gap reporting

The difference in average pay between men and women in the UK is 18.1% for all workers, and 9.4% for full-time staff.

The Office for National Statistics
Employment Law for Businesses

Recognising that a diverse workforce is good for individuals and employers as well as the wider economy, the UK Government introduced new legislation which took effect on 5 April 2017. The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 require all organisations with 250 or more employees to publish their gender pay gap data by 5 April 2018.

Penningtons Manches Cooper advises clients on each stage of the process, from the initial data collection required to comply with the regulations, to analysis and calculating the ‘snapshot’ figure for any gender pay gap, through to developing a strategy and communication message for the final gender pay gap report.

We recognise that data gathering and calculating the gender pay gap can be a complex process for an organisation. Despite the level of publicity that the new regulations have received, an online survey has revealed a degree of uncertainty over the practical application of the regulations in the workplace, with many employers unclear on what constitutes an ‘employee’, how group companies should report, and how different types of ‘pay’ and bonus schemes should be recorded. 

Our approach is both practical and strategic. We provide expert legal advice to ensure that the data collected and inputted to the calculations complies with the regulations, and our Gender Pay Gap Calculator is a practical tool that we have developed to calculate both mean and median pay and bonus figures. This enables employers to produce an accurate figure on the pay gaps in their organisation. 

We also work with employers to decide how the data should be presented. The publication of a gender pay gap statement can potentially have an impact on both the external reputation of an organisation and the individuals who work within it. We offer specialist advice on what an organisation presents and how, as well as on what steps it can take to close any pay gaps which may exist and what to include in any voluntary narrative.

Our lawyers can also carry out privileged pay audits in order to help frame the narrative in the way which best suits the company.

We offer expert advice on:

  • which organisations/groups of companies are in scope for the regulations
  • what employers need to disclose
  • the definition of ‘employee’ (contractors, agencies, casual staff etc)
  • what is included/excluded in the definition of ‘pay’
  • accounting for bonuses and non-cash bonus awards
  • calculating mean and median pay and quartile calculations needed for the ‘snapshot’
  • presenting the final data – mandatory and optional reporting
  • publishing the final report and communicating the organisation’s diversity message
  • potential steps to take to close the gender pay gap
  • privileged equal pay audits to help frame the narrative to suit the company

Recent work highlights

Academic assessment

Advising a leading independent school in relation to the calculation of working hours and rates of hourly pay for senior academic staff.

Communications challenge

Drafting a gender pay report and statement for an organisation with a significant gender pay gap and providing guidance on how best to deal with communication of this internally and externally.

Related expertise

Penningtons Manches Cooper LLP

Penningtons Manches Cooper LLP is a limited liability partnership registered in England and Wales with registered number OC311575 and is authorised and regulated by the Solicitors Regulation Authority under number 419867.

Penningtons Manches Cooper LLP