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With the gender pay gap reporting Regulations coming into force in April, it is critical that HR teams can understand and explain gender pay headline figures and the reasons for pay gaps. Daniel Pollard and Paul Quain of GQ Employment Law offer some tips on how to go about this.
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 will come into force on 6 April, requiring all voluntary and private-sector employers with 250 or more employees to publish information about their gender pay gap results.
The data will have to show median and average pay data and bonuses, and separate the data by quartile. The figures must be accompanied by a written statement of accuracy, signed by a director, and be published on the employer's website.
Despite the fact that the Equal Pay Act came into force nearly 50 years ago, on average the hourly pay of female employees is 18% lower than men's, according to the Institute for Fiscal Studies (IFS).
It follows that the typical employer should expect to have an 18% gap, although the gap is likely to be larger for businesses with large part-time populations, or for those with few women in senior positions. From April 2018 employers will have to provide an expla