Gender pay gap reports – what organisations need to know

Gender pay gap reporting was introduced in order to tackle and discourage differences in pay between men and women in organisations. The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 took effect from 6th April 2017, requiring organisations to take a ‘snapshot’ of their gender pay data. Organisations had a further 12 months in which to analyse and publish that data, by April 2018 at the latest.

Since then, this has been an annual requirement for organisations with 250 members of staff or more, enabling them to demonstrate if they had seen any changes in a gender pay gap and, crucially, allow them to show what they’ve done to work towards this. However, all of this changed in 2020, with the challenges posed by the coronavirus pandemic leading to the government pausing the lawful need to do Therefore organisations did not have to publish a report in 2020, however the government has now confirmed that they will need to do so in 2021.

Guidance has been released from the government on how this will work, this is summarised below.

The law will work in the same way as it has done previously, but the impact of the coronavirus will be felt. The ‘snapshot’ date that employers in the private sector will need to focus on is 5th April 2020, which was just after the first lockdown was implemented and the original furlough scheme had started to be rolled out.

Normal rules on producing a report dictate that employees do not need to be included in the ‘reporting pool’ if they were not on full pay on the ‘snapshot’ date. This means that any member of staff who was furloughed, and who did not have their pay topped up to 100%, can be discounted from the report for the purposes of hourly pay calculations. The knock-on effect is that the reporting pool could be significantly reduced as a result; the results it produces may therefore show an increase, or decrease, in the gap that is not representative of the real situation.

That said, furloughed staff should still be included in any calculations relating to bonus pay, regardless of whether their salary was topped up or not.

Organisations should ensure that any report they produce is combined with a detailed explanation of the figures; if there is a substantial change, they should explain that this is as a result of the number of staff on furlough and/or the redundancies they have had to make due to coronavirus and steps the organisation had to take in 2020.

Another key issue to bear in mind is the need to have a least 250 members of staff in producing a report. Organisations may have reduced their staffing numbers throughout 2020 and therefore may believe that they are no longer required to produce a report. However, they should note that the key date is 5th April 2020. If on that date they did meet the criteria to produce a report, they will still need to do so. Again, a staffing reduction may have an impact on the figures, so this should also be clearly explained.

Furloughed staff should be taken into account when considering staffing numbers, regardless of whether their salaries were reduced or not.

New laws surrounding breach of self-isolation

With new laws surrounding breach of self-isolation requirements now in force, organisations need to be aware if their employees are told to isolate.

From 28th September 2020, it became a legal requirement for employees to self-isolate if told to do so as a result of potential, or confirmed, coronavirus exposure. These can range from having symptoms, to being told they have a positive case of Covid-19, to coming back from a country listed by the government has having high infection rates.

Breaching these new ‘Self-Isolation Regulations’ can lead to individuals receiving significant fines, a liability that also extends to organisations. In a nutshell, if businesses are found to have breached these requirements, they will face a fixed penalty notice of £1,000, rising to £10,000 for fourth offenses and above. It is therefore crucial that organisations understand the law.

In the Regulations, if an organisation requires an employee to come into work despite them being told to self-isolate, they will have committed an offence. This extends not just to them attending the usual place of work, but any other place connected with work that is not the location in which they are self-isolating, ie their home. For example, if an employee is asked to visit a client on work-related purposes, or even a colleague, this would still be in breach of the Regulations despite any social distancing in place and their visit only being a short one. Whilst staff can be asked to work from home if they are well enough to do so, they must not be encouraged or told by an organisation to leave here for work-related purposes.

These provisions also extend to ‘knowingly’ allowing an employee to attend the workplace, in other words being aware they have been told to self-isolate but permitting them to come into work if they want to. However, the situation does get a little bit trickier if the organisation is not aware of their employee’s situation, and this employee then goes on to breach the rules. Whilst employees are expected under the Regulations to disclose this if they have to undertake work-related activities outside of the place they are self-isolating, the law is less clear on what happens if an organisation is not told, or if the message does not get through to management.

To this end, it is vital that organisations take these new Regulations into account and make sure they are adhering to them. Employees should be clearly informed what they are expected to do if they are told to self-isolate, including who they need to tell, when and how. It should also be made clear that, due to the importance of adhering to the Regulations, failure to follow this could result in disciplinary action.

HMRC Portal for the Job Retention Scheme goes live tomorrow! Access the Step by Step guide in making a claim now!

HMRC are releasing the Portal for the Coronavirus Job Retention Scheme tomorrow.
 
HMRC have already released a step by step guide to assist with making a claim, to access this click the below link:
 
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/880099/Coronavirus_Job_Retention_Scheme_step_by_step_guide_for_employers.pdf
New Employment Law April 6th 2020

Changes To Employment Law 6th April 2020

Good Work Plan comes into effect from today.

In July of 2017 Matthew Taylor published a report into modern working practices and stated that numerous changes were needed to improve the productivity of employees. In December 2018 the government responded with the “Good Work Plan” this promised developments to the law over the course of the next few years. In particular this month, April 2020. However, due to numerous worries like the Brexit and the Coronavirus outbreak companies have put the changes on the back burner. Never the less, today on the 6th April the new laws have still come into effect.

From today the following laws apply:

Changes to written contracts of employment April 6th 2020

Several changes have been introduced to the right to receive a written statement of the main terms (SMT) The document will list all of the employees key terms of employment, this will include their pay and annual leave entitlements. Up until today organisations were given 2 months to give this to a new employee. The grace period that existed from today has been removed. This means that the SMT will now have to be given to the employee from the first day of their employment.

Not only this, more details now will have to be stipulated in the SMT these are as follows:

  • Details of training provisions and requirements.
  • Terms and conditions that relate to work have also been extended to cover the terms that relate to normal hours of work, the days of the week that the employee will be required to work and if these will vary.
  • Terms related to paid leave such as family friendly leave.
  • All details of other employee benefits, such as benefits in kind or financial benefits.
  • Terms relating to probationary periods including those in relation to length and conditions.

Employers now also have to provide and SMT to their “workers” as well as all of their employees, this includes employees on a zero hour contract and casual workers.

National Minimum Wage increase April 6th 2020

The rates are for the National Minimum Wage. The rates change every April. The New rates below:

Holiday pay changes April 6th 2020

From the 6th April 2020 companies will now have to use a period of 52 weeks when calculating holiday pay to work out the average opposed to the previous period of 12 weeks.

This will be used to calculate holiday pay for employees who work irregular hours. The new calculation will balance out peaks and troughs of working hours throughout the year.

Parental bereavement leave

As of today, the 6th April 2020 all eligible employees will be allowed to take 2 weeks leave if they suffer either a stillbirth after 24 weeks into their pregnancy or a child under the age of 18 dies. This right is implemented from day one of employment and employees are entitled to take these in one single block of 2 weeks or two separate blocks of 1 week leave. Employees will have up to 56 weeks following the bereavement to take this leave.

Agency workers

As of today the “Swedish derogation model” contracts given to agency workers are banned. The contracts were used as a legal loophole to avoid paying agency workers the same basic pay as their direct recruits at the company after 12 weeks of being assigned. Anyone who is at present engaged on one of these contracts will be entitled to a statement to explain the effect of the ban on their pay. This will need to be given out no later than the 30th April 2020.

All agency workers will also now be entitled to a key facts sheet before agreeing to any terms which they will be undertaking work. This will include the minimum rate of pay, any deductions that could be expected from their pay and the type of contract the agency worker will be given.

Coronavirus Employer & Employee Rights

Legal Implications of Coronavirus for Employers

At present there seems to be a high possibility of a Covid-19 pandemic in the United Kingdom. Infection rates could be seen to rise to nearly 60% of the population, with 25% suffering from more severe symptoms and 2% will require treatment.

If the Cornavirus spreads like suspected it will have a number of knock on effects, transport, schools, working patterns and more.

As an employer it would be irresponsible to presume that these predictions are exaggerated because we have survived other high-profile diseases and they haven’t spread like we thought they may. Now is the time to take sensible precautions and to prepare yourself for the worst. This could protect you from financial losses and claims in the future.

Your obligations

Contracts of employment contain obligations for you to take care of the health and safety of all of your employees.

Any breaches of these obligations could potentially lead to constructive dismissal claims and employee resignations.

As an employer you also have to follow a common law duty that states you have to take reasonable care of the health and safety of your employees. This includes providing them with a safe place of work.

If the damage was easily foreseeable your employee could bring a personal injury claim against you.

As a business you are subject to a similar obligation found under the Health & Safety at work act(1974) any breaches of this could lead to a criminal prosecution against you.

So it is imperative that you plan and prepare for what could be ahead.

Am I allowed to discipline or dismiss someone who is not ill but is refusing to come to work?

Dependent on the circumstances, yes. First you must take into account any existing conditions that may contribute to irrational or increased anxiety issues.

Do I have to still pay my employee if this happens?

It may well be a good idea for you to do so as the employee has rights to contractual sick pay. However, if the employee is not ill this does not apply. As previously mentioned though, if the employee is suffering from anxiety about the current threat of coronavirus, then they are entitled to the sick pay.

What should I do if my employee comes to work after being in contact with a person infected with the Coronavirus?

To begin with you should make sure that there are clear instructions that staff should not do this and that they should contact you via telephone if they believe they have been in contact with an infected person.

If any of your employees ignore this instruction then you can ask them to go home or to work from home. It is a possibility that you may have to pay your employee should this occur.

Should I impose new safety rules on staff? Do I need to talk to them about the new rules?

If the number of confirmed cases continue to rise as quickly as it has then there will be a duty for you to do so. Even now some would argue that as an employer you have a responsibility to impose these new safety rules.

It’s good practice to consult with all of your management team withing your organisation and to consider your specific needs and operations.

What if my employee chooses to ignore new rules?

If this situation arises then you may be in a position to take disciplinary action. Dependent on the specific circumstances a warning should be implemented first.

Can I adjust working hours to reduce the number of my employees at work at the same time?

Perhaps a good precaution to take if you believe it may reduce a risk of the staff becoming infected. You should however consult with the staff first.

Can I lay people off work or reduce their hours if my revenue becomes affected?

Dependent on if you have stipulated this already in your employee contracts. A well worded disaster recovery plan may give you this right.