Gender pay gap reporting: UK employment law

Essential points

• In UK law many large employer organisations are required to report their gender pay gap annually. Non-compliance with reporting comes with penalties and may have an adverse impact on an employer’s reputation.
• The CIPD define the gender pay gap as “a measure of labour market or workplace disadvantage, expressed in terms of a comparison between men’s and women’s average (median) hourly rates of pay. It’s about pay, but also about other factors.” 
• Specific organisations have additional reporting obligations aimed at ensuring greater pay transparency and progressing equality particularly those in the public sector, or in industries where governing bodies or regulatory authorities may require this (for example, listed companies and those in the financial services sector).    
• Organisations must be conscious of further legal requirements operating across Europe and in other countries in which they operate and have staff.  
• The guidance issued below relates to gender pay gap reporting in England, Scotland and Wales. 

The Employment Rights Bill proposes to make it compulsory for employers with 250+ employees to publish equality actions plans. Keep up to date with the latest on these changes with our tracker of potential law changes.We will update this page once any changes are enforced.