Jawaid Rehman 24 January 2017

Closing the gender pay gap

A report by the World Economic Forum has forecast that it could take 170 years to eradicate the disparity in pay and employment opportunities for men and women. The gender pay gap is clearly a hot topic at the moment, and the government have made it clear that they are committed to tackling it.

In July 2015, David Cameron announced that the government would ‘end the gender pay gap in a generation’. Consultation then took place on draft regulations introducing mandatory gender pay reporting for employers in the private and voluntary sectors with 250 or more employees – this has since been extended to a range of public sector employers and will likely come into force next year.

In simple terms, based on the draft regulations, those organisations within scope will be required to publish data annually on the following measures:

  • The mean and median gender pay gap;
  • The mean and median bonus gap;
  • The proportion of male and female employees in each quartile of the pay distribution.

Both the data and supplementary information will have to be published on websites accessible by the public and should be kept there for three years, as well as uploaded to a central government website. Non-compliance will mean that the Equality and Human Rights Commission has the power to take enforcement action.

The stated aim of all this is of course to tackle the gender pay gap, which is understandable, but one might question why this remains an issue in the public sector. Following the Single Status agreement in 1997, local authorities were required to conduct an extensive job evaluation programme; the aim of which was to produce a fair and non-discriminatory pay and grading structure for all workers.

While this unfortunately acted as a catalyst for waves of historical equal pay claims, it also ought to have gone some way to addressing gender pay issues for those carrying out equal work.

However, recent ONS data shows that the full-time gender pay gap in the public sector actually widened from 9.5% in 2013 to 11.4% in 2015, which may go some way to explaining why the issue is firmly on the government’s radar for public and private sectors alike.

Other than the time-consuming task of collating the information, the main implications of significant pay gaps will be:

  • Employees questioning their pay levels, which may result in equal pay claims;
  • Claimant lawyers targeting employees with the potential for equal pay claims;
  • Negative publicity.

What should councils do to prepare?

It would be prudent to conduct a pay audit and carry out a sample test to check the current gender pay gap. An action plan can then be put in place to narrow the gap and provide narrative for any differences where necessary. Employers will be able to volunteer explanations or further information to contextualise their data, therefore, strategic decisions will need to be made about what supplementary information ought to be published alongside any concerning or anomalous pay gaps.

Benchmarking data with other similar bodies to understand how they compare might also be a useful exercise. For all of the above, seeking professional advice at an early stage is likely to pay dividends.

Jawaid Rehman is a partner in the employment, pensions and immigration team at Weightmans LLP.

This feature first appeared in Local Government News magazine. Click here to sign up for your free quarterly copy.

Banning urban pesticide use image

Banning urban pesticide use

RSPB and PAN are working on a letter from local councillors calling on the Government to introduce a national ban on urban pesticide use. Find out more below.
SIGN UP
For your free daily news bulletin
Highways jobs

Social Worker

West Northamptonshire Council
£36,734 to £39,278
We are looking for Social Workers who enjoy working in a fast-paced environment and who are passionate about promoting independence and who share the vision of ‘Home First’ and reablement, to ensure people have choice and control over their own lives Northampton
Recuriter: West Northamptonshire Council

Head of Transport Strategy & Road Safety

Warwickshire County Council
£76,594 - £84,443 per annum
We have a unique opportunity for you to shape, influence and create a better future for Warwickshire Warwickshire
Recuriter: Warwickshire County Council

Development Engineer

London Borough of Bexley
£34,476 - £39,777 per annum
The team requires someone who can inspect, measure and monitor highway works Bexley (London Borough), London (Greater)
Recuriter: London Borough of Bexley

Highway Asset and Development Manager

Bolton Council
Grade N Scp 50 £59,031 to Scp 53 £62,076, plus car allowance
To be responsible for leading, developing and delivering an effective, efficient and safe Highway Asset Management Service Bolton, Greater Manchester
Recuriter: Bolton Council

Bridge Engineer

Somerset Council
£34,834 to £39,186
We welcome applications from a diverse range of backgrounds and experiences to enrich our team. Taunton
Recuriter: Somerset Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.