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Pay Gap

Posted by Jessica Thompson on 4th March 2016

The Government Equalities Office (GEO) has announced new legislation to help decrease the gender pay gap in the UK.

In a statement released earlier this month, they confirmed that it will soon be compulsory for all companies who employ over 250 people to publish the salaries and positions of all of their employees. This will mean that approximately 8,000 companies will have to divulge whether they currently pay their male and female employees equally. The details will be available on their websites.


A new league table will be put in place to highlight those falling below the standard. The legislation will go to parliament this September and be enforced in April 2018. The goal is that, by 2020, the UK will have three years of pay documented across all major businesses.

Companies will also have to publish their annual bonuses which are currently two thirds higher for men than women.


How could it affect you?

Here at Endeavour we are advising those in the private sector that this really is the last chance for employers to get their houses in order in relation to equal pay.  After all it has been 46 years since the last legislation, The Equal Pay Act 1970, which was meant to eradicate any pay gaps between men and women.


What should you do now?

It’s important to act now so that there’s enough time to address any unjustified pay imbalances before the first reports have to be published in April 2018.


What happens if you don’t do anything?

 If companies do not comply, then in addition to the reputation damage caused by the promised ‘naming and shaming’, the no-win-no-fee lawyers will also be circling and ready to pounce on any discrepancies which don’t stand up to scrutiny.  Invariably, there will be more and more expensive and reputation-damaging equal pay claims as the last 46 years start catching up.


Does it affect small businesses?

In a word, yes. This is not just a problem for large employers.  Equal pay issues will become more mainstream (in the press, online etc) and more and more employees will be aware of them and will start asking questions. 


Remember that the Equal Pay Act applies to all employers, regardless of size.


What should you do?

Endeavour Partnership has many years’ experience in this area and can quickly and easily conduct an equal pay audit of your business, large or small, and can help you identify any risks. 

We can then work with you to minimise those risks and to ensure that your business is in good shape to meet the rigours of the equal pay regime and, if you are large enough to have to publish gender pay gap information, to ensure that you are not embarrassed by the contents of that report.


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