Equal Pay Day a time for businesses to consider the gender pay gap

As “Equal Pay Day” arrives just a day later than last year, businesses should act now on the gender pay gap to avoid long term reputational and financial damage, say lawyers at Weightmans LLP.

10 November 2016 is Equal Pay Day in the UK, designated by the Fawcett Society to mark the day of the year that women effectively stop earning an income in relation to their male counterparts.

The scrutiny on businesses around equal pay is set to intensify next year as new regulations come into force in April 2017. This new legislation will require many employers to openly publish figures relating to pay, including overall average gender pay gaps and comparisons of bonuses paid between male and female employees.

Elaine McIlroy, Glasgow partner in the employment, pensions and immigration team at Weightmans said: “Equal Pay Day has moved back by one day this year to the 10 November – although this is a step in the right direction, there is still a way to go for employers to address the balance. A gap between the pay of men and women doing the same job will inevitably raise the risk of potential equal pay claims.

“New legislation will require many employers to publish figures showing a snapshot of pay as of April 2017, within 12 months. A great deal of scrutiny will be placed on those who reveal that they pay female staff less without reasonable justification.”

She added: “Businesses can and should be proactive in this difficult area, consulting advisors and performing audits now in order to be ahead of the curve and anticipate any issues before the gender pay spotlight shines on businesses next year. By adhering to guidelines and being prepared to report on what they are doing to close any gaps, businesses can both avoid costly claims and help Equal Pay Day become a thing of the past.”