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Section 78 of the Equality Act 2010 (as amended by the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, which came into force on 6 April 2017) (“EA 2010“), currently governs how large private and voluntary sector employers (defined as those with 250 or more employees as at 5 April each year) report on and publish information relating to their gender pay gaps.
Currently, under section 78 of the EA 2010, for financial years beginning on or after 6 April 2017, employers must publish:
On 28 January 2020, the Equal Pay Bill (the “Bill“) had its first reading in the House of Lords and was published.
The Bill seeks to extend the coverage currently given under the EA 2010 to a greater percentage of the workforce and proposes various amendments to section 78 of the EA 2010. This would widen the scope of employers’ gender pay gap reporting to:
If the Bill does become law, then there will be increased gender pay gap reporting obligations on employers, which may come with added financial implications as a result of employers seeking to comply with the Bill and also potentially as a result of new court and Employment Tribunal cases being brought by employees in relation to their pay. The Bill would also give the Equality and Human Rights Commission a discretionary power to enforce employees’ Right to Know, which could also have financial implications on employers.