Gender pay gap
This month's topical employment update has been written by Hamda Mohamed from the University of Law. We hope you find it interesting.
Later this year, regulations will come into effect which will mean that employers have to publish data about the difference in pay between men and women in their organisation.
The Equality Act 2010 (Gender Pay Gap Information) Regulation 2017 will now include the private and voluntary-sector. The gender pay reporting legislation will require large organisations who employ 250 or more employees in England, Wales and Scotland (not including Northern Ireland) to publish how large the pay gap is between their male and female employees. Employers will be required to publish the data on the 5th April 2017 and the same date each year after that. There is no legal requirement on smaller organisations to publish such data, but they are encouraged to do so. Where an employer's headcount varies in any year where the headcount is 250 or more they are required to publish their data. The results must be published on the employer's own website and a government site, this means the information will be publicly available to customers, employees and potential future recruits.
The regulations contain a broad definition of employees and so will include zero-hours workers, apprentices and some self-employed individuals. The regulations will cover employees if they are employed on 5th April, work mainly in England, Wales or Scotland, and are on full pay. Employees on reduced rates of pay while on maternity leave or sick leave will be excluded.
What are the calculations?
An employer must publish six calculations showing their:
1. Average gender pay gap as a mean average
2. Average gender pay gap at a median average
3. average bonus gender pay gap as a mean average
4. Average bonus gender pay gap as a median average
5. Proportion of males receiving a bonus payment and proportion of females receiving a bonus payment
6. The proportion of males and females when divided into four groups ordered from lowest to highest pay
The government has launched an online tool that allows employees and the public to find out the gender pay gap for their occupation. The tool can be found here.
What should you do if you are being paid less than your colleagues?
The law prevents employers from paying employees differently on the basis of their sex. If you suspect that you are being paid less than someone of the same sex who does the same job, or a job of equal value, then you may be able to bring a claim under equal pay legislation. This can be a complicated process, so if you would like advice on this issue please consider making an appointment with us.
More information about the subject can be found on the ACAS website..
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Thank you Midland Legal Support Trust!
A big thank you to the MLST and to everyone who raised funds to support organisations like Birmingham Peoples Centre. Without your support we would struggle to meet the costs involved in providing our services. The grant we recently received will enable us to continue to assist those who have nowhere else to turn and make employment rights meaningful.
Working with students from the University of Law in Birmingham
Students from the University of Law have kindly offered to keep our news section topical by producing regular articles for the website. The first issue covered is the "gig economy" and the recent Uber case. Many thanks to the students involved!
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Britain’s second-biggest parcel company, Hermes, which delivers for John Lewis and other major retailers, is paying some of its couriers at levels equivalent to below the national living wage according to a snapshot of information provided by some of those who have worked there.
In common with several delivery firms serving the internet shopping boom, Hermes does not need to pay its couriers the £7.20 an hour living wage introduced in April because they are self-employed. The arrangement is legal and is approved by Her Majesty’s Revenue and Customs.
To find out more click here.
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A recent report by Citizens Advice highlights the difficulties that some low-paid workers experience in getting the wages that they are owed. If you need help to obtain the money that you are owed by your employer please contact us.
You can find out more here.
Revealed: how Sports Direct effectively pays below minimum wage
A recent investigation by the Guardian highlights working practices employed by Sports Direct that appear to show workers being paid bellow the minimum wage. Details of the report can be found here.