In just a few weeks, the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (SI 2017/172) will be in force, and the 5 April snapshot date around which affected employers’ first gender pay gap reports must be based will have passed. Employers, and their lawyers, have had some time to pore over the Regulations and accompanying Acas Guidance. Now, as employers gather their pay data and put the Regulations’ detailed calculation provisions into practice, previously unforeseen complications are likely to arise. Here, we focus on those we feel may cause particular problems.
Unrepresentative hourly rates for employees with variable hours
The main gender pay gap calculations (mean, median and distribution across pay quartiles) are based on the hourly rate of pay. In order to calculate an employee’s hourly rate of pay, the employer must take the (ordinary and appropriately pro-rated bonus) pay received during the relevant pay period, multiply it by an appropriate multiplier (7, divided by the number of days in the relevant pay period), then divide by the employee’s weekly working hours (regulation 6). Continue reading