Employment Law Newsletter – May 2018

Welcome

Welcome to the latest Employment Law Newsletter which covers matters that we thought might be of interest.

If you have any queries on anything in this edition, please contact Nigel Harrison or Jack Latham on 01743 248545 or by email n.harrison@hatchers.co.uk, or j.latham@hatchers.co.uk. Also follow Hatchers’ Employment Team on Twitter @hatchershr

Answers on Gender Pay Gap Reporting

The law now mandates that large private and public sector employers must file gender pay reports.

Reports are to include the following:

  • mean gender pay gap
  • median gender pay gap
  • mean bonus gender pay gap
  • median bonus gender pay gap
  • proportion of males and females receiving a bonus payment
  • proportion of males and females in each quartile band

The mean hourly rate is the average hourly wage across the entire organization. This is calculated by adding the hourly rates of all employees in a particular group and dividing by the number of employees in that group.

The median hourly rate is calculated by ranking all employees from the highest paid to the lowest paid, and taking the hourly wage of the person in the middle

Gender pay gaps are published online at https://gender-pay-gap.service.gov.uk/ .

It remains to be seen whether negative publicity will be a sufficient motivator for employers to report their gender pay gaps and improve their recruitment, pay, promotion, flexible working and family friendly practices.

Below is a snapshot of some reported gender pay gaps for some of the largest employers in the country:

Asda Stores Limited
Mean Hourly Rate Women 12.5% lower than men
Median Hourly Rate Women 8.9% lower than men
Who Received Bonuses? 88.3% of women

85.3% of men

Mean Bonus Women 52.5% lower than men
Median Bonus Women 21.5% lower than men
Barclays Bank UK PLC
Mean Hourly Rate Women 26% lower than men
Median Hourly Rate Women 14.2% lower than men
Who Received Bonuses? 95.2% of women

93.1% of men

Mean Bonus Women 60.1% lower than men
Median Bonus Women 46.9% lower than men
Amazon UK Services Limited
Mean Hourly Rate Women 2.1% lower than men
Median Hourly Rate Women 0.1% higher than men
Who Received Bonuses? 39% of women

38.8% of men

Mean Bonus Women 2.9% higher than men
Median Bonus Women 4.7% higher than men
McDonalds Restaurants Limited
Mean Hourly Rate Women 4% lower than men
Median Hourly Rate Women equal to men
Who Received Bonuses? 53% of women

54% of men

Mean Bonus Women 57% lower than men
Median Bonus Women 7% lower than men
Royal Mail Group Limited
Mean Hourly Rate Women 2.1% higher than men
Median Hourly Rate Women 1.5% lower than men
Who Received Bonuses? 97% of women

99% of men

Mean Bonus Women 9.1% higher than men
Median Bonus Women equal to men
UK Armed Forces
Mean Hourly Rate Women 0.9% lower than men
Median Hourly Rate Women 0.2% lower than men
Who Received Bonuses? 23.1% of women

20.9% of men

Mean Bonus Women 7.9% lower than men
Median Bonus Women equal to men

Over 10,000 private employers published their gender pay gaps on or before 4 April 2018. The results show that 78% of large employers pay men more than women, with only 8% reporting no gender pay gap, with financial institutions having a particularly wide gender pay gap averaging 35.6%.

Ryanair Limited reported the largest gender pay gap, with women’s median pay being 71.8% lower than men’s.

High street food services sectors have reported the smallest pay gaps. However, this could potentially be explained by such businesses using flat pay rates, with a large proportion of staff on the minimum wage regardless of gender.

For more information on the gender pay gap, please see Hatchers’ previous newsletter “Seven questions on mandatory pay gap reporting” or contact Hatchers’ employment law team.