13 Dec 2016
With the Government finally publishing after eight months of waiting, Clare Parkinson, Head of Reward at Croner, looks at what the final Gender Pay Reporting Regulations means for employers.There are a number of significant differences between the draft regulations and the final version. One of the key differences is with the definition of an ‘employee’, which now reflects that of the Equality Act 2010. This means that it covers not just employees, but self-employed workers who are engaged directly by employers as consultants for example. This change in definition may mean that many more workers may be covered. There is also the issue of pay data for these individuals who may not be on the company payroll. However, the Regulations state that self-employed workers are exempt from the calculations if it is difficult to obtain the relevant data. The ‘snapshot’ date to collect data, previously 30 April, has now moved to 5 April. This may affect those workers who are paid weekly or fortnightly, especially if annual bonuses are paid at the beginning of April. The process for calculating the hourly pay rate has also changed, with the Regulations stipulating that a month and a year are treated as having a specific number of days. Clarification to the definition of ‘pay quartiles’ will mean that organisations will have to split their workforces into four equal-sized groups according to hourly pay, from the lowest to the highest paid. Finally, only ‘full pay’ relevant employees should be included in the mean and median hourly pay rate calculations. Croner Reward has a specialist Gender Pay Reporting service to help organisations meet the requirements of the Regulations. This comprehensive service includes analysis of pay data, a comprehensive report, plus access to Croner's Employment Advisory Service, to support organisations with any issues they may have following analysis of their data. For more information regarding our Gender Pay Reporting Service, please click here.
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