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ARTICLE · 10 APRIL 2018

Does A Gender Pay Gap Indicate That An Organisation Has An Equal Pay Issue?

The recent news headlines have been inundated with reports of gender pay gaps within well-known, and often well-respected, organisations.

United KingdomEmployment and HR

The recent news headlines have been inundated with reports of gender pay gaps within well-known, and often well-respected, organisations.

One of the latest being Channel 4, which has recently reported an average gender pay gap of almost 29% and a bonus gap of almost 48%. But does this mean that those organisations are in breach of equal pay legislation? Not necessarily...

The laws relating to 'gender pay gap reporting' and 'equal pay' are entirely separate and distinct, and can be summarised as follows:

Gender pay gap reporting

The gender pay gap reporting regulations came into force on 6 April 2017, and require large private and voluntary sector employers to publish an annual gender pay gap report. Each affected employing entity (being, any private or voluntary sector employer with 250 or more employees on 5 April that year (the "snapshot date")) must publish the following information:

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