1. Zero hour workers
The final guidance says that employees who receive no pay during the relevant pay period, whether or not this is as a result of being on leave, should be excluded from the pay gap calculations. This includes those on zero-hours contracts who do not work during the relevant pay period. This is important because including such staff in your analysis can materially skew your gender pay gap figures.
2. Bonuses paid in securities
The Regulations require employers to calculate the value of bonuses paid in securities at the time when the employee incurs a charge to income tax. It was unclear, however, how to treat securities under tax advantaged schemes which don’t incur income tax. The final guidance says that employers can ignore such tax advantaged securities in their bonus pay calculations.
3. Sign-on, buy-out and retention payments
It was unclear from the Regulations whether recruitment and retention payments should be counted as ordinary pay or bonus pay. This affects which pay gap statistics such payments should be included in. The final guidance confirms that such payments should be treated as bonus pay.
Next steps for employers
With the Regulations now in force, employers should be preparing for the new gender pay reporting regime in earnest. Our Gender Pay Gap Reporting: Getting It Right Guide sets out the steps employers need to take.
Employers can now register to report their gender pay gap data to the Government by accessing the Government’s new campaign page. This is of particular relevance now to employers who are well advanced with their gender pay reporting preparations.
Complying now with the new regime ensures you are best placed to manage and explain your pay gaps. BLP’s Employment Team can support you at every step of the process. If you would like to discuss your gender pay gap issues, please get in touch.