Retail & Leisure
Gender Pay Gap obligatory reporting will be in force on 6 April 2017 for those employing more than 250 employees (first reports to be published April 2018). Employers who have already conducted preliminary audits may find they need to make adjustments to pay for some groups or individuals where the pay gap statistics are suggestive of an equal pay liability or use the voluntary narratives to accompany the publicised data to carefully explain discrepancies (although it is worth noting that a gender pay gap does not automatically give rise to a good basis for an equal pay claim).
What this means for the sector
While the retail sector is by no means the worst performer in pay gap statistics, the sector is already being targeted with equal pay claims as evidenced by a significant number of claims having been brought against Asda and Sainsbury's.
While having a pay gap will not necessarily mean an employer has an equal pay issue, the requirement to publish pay gap data may provoke further equal pay claims against employers in the sector.
Careful consideration will need to be given to pay structures and any explanatory narrative to accompany the raw pay gap data.
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