In the UK, the government is attempting to address the gender imbalance and discrepancy in pay amongst men and women with the introduction of gender pay-gap reporting.

For the first time, larger employers (i.e. those with 250 employees or more) are going to be required to calculate and publish details of how they pay their male and female employees. However, public sector employers are not subject to these reporting requirements.

This new obligation is likely to be quite onerous and problematic for employers. It could well raise employee relations issues and cause reputational harm and it may even trigger potential equal pay claims from disgruntled employees. At the very least, employers could face embarrassment from the information they have to disclose.

The new gender pay gap reporting obligations are expected to come into force in October 2016. Current salary and bonus information will need to be analysed and reported on, so employers should be considering the potential impact of this new obligation now.

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