Since 2017, employers with over 250 employees have to publish gender pay gap figures.
The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 defines a pay gap to be the difference between the median (or mean) hourly pay of employees in category A and the median (or mean) hourly pay of employees in category B.
Gender pay gap data is a measure of the difference between gender groups’ average earnings across an organisation or the labour market as a whole over a period of time, regardless of role or seniority. It is not a like-for-like comparison of male and female employees. Even if an employer has a fair pay and reward policy, and even if it has equal pay, it could still have a pay gap.
A pay gap is not the same as unequal pay. Unequal pay means that employees performing equal work, or work of equal value, are not receiving equal pay. It is unlawful to discriminate because of their gender.
It is unusual now for a woman doing the same job as a man to be paid less salary than him. However pay difference can arise when bonuses are awarded or if he is considered to be more ‘senior’ than her. The question of whether a woman is doing work of equal value to a man, but earning less than him, can be quite complicated to assess.
Equal Pay claims can be brought under the Equality Act 2010 but are not straightforward and require careful drafting.
We are discrimination and equal pay solicitors. If you are a woman who feels she is being paid less for doing work of an equal value to that of a man, do call to discuss your situation.
For more information see the government site on Gender Pay Gap Reporting.