Gender Pay Gap reporting
In 2023 the Gender Pay Gap Information Act 2021 introduced the legislative basis for gender pay gap reporting in Ireland. The Gender Pay Gap is the difference between the average hourly wage between men and women in the workforce, writes Caroline Reidy
Print21 August 2024
It is important to note that ‘Equal pay’ is a different issue which is about the prohibition of pay differences between men and women for “like work,” “work of equal value” or “work rated as equivalent.” Such differences are not permitted under Irish law and this requirement is something that Irish employers already must address. The issue of “Equal Pay” is connected to the Gender Pay Gap issue.
Therefore, it is possible that, even if an employer does not have an equal pay issue, a gender pay gap may still exist, for example if the majority of lower paid roles are filled by women. Gender Pay in Ireland is a crucial step towards addressing pay inequality between men and women.
Reporting requirements
At present, companies with 150 or more employees are asked to report on their gender pay gap. The Act widens the scope to employers with 50 or more employees by 2025. All relevant companies are required to select a ‘snapshot’ date in the month of June. Their reporting will be based on the employees they have on that date. The companies then have six months to prepare their calculations before reporting six months later, by the end of December. It is intended that from 2025 the reporting date will change to five months from the June snapshot date. This means that mandated organisations will report on their Gender Pay Gap in November 2025.
What needs to be disclosed?
The Gender Pay Gap Reporting legislation requires employers to disclose statistics on pay differences between male and female employees across a range of elements, including hourly pay and bonus. Data must also be reported on differences between male and female employees across a range of working arrangements, including part-time employees and those on temporary contracts.
Disclosure is required on the following:
- The proportion of male and female employees who receive benefits in kind and bonuses.
- The number of male and female employees across four pay bands.
- A possible requirement to publish differences in pay by reference to job classification.
Where is it reported?
All required information relating to gender pay gap must be published on the employer’s website or in another way that is accessible to all its employees and to the public. Employers are required to ensure that their gender pay gap report remains available and accessible for not less than three years from the date of publication or on which they were made available. It is expected that an online portal will be available in the future.
What are the key points for employers to ensure they are fully compliant?
1. Understand what is required to be reported and ensure that systems are in place which can easily produce the statistical data for publication.
2. Calculate your gender pay gap now to identify any equal pay risks or other systemic issues giving rise to the gap before it must be published.
3. Identify additional numbers, initiatives and plans to address the gap which you would like to disclose that can provide supporting information.
4. Use the data and analytics to understand the root causes or why certain groups of staff are especially affected.
5. Begin to craft the narrative of your disclosure and develop your communication plan. This could include sharing and discussing the data internally before going public.
How do I address Gender Pay Gap issues?
The company must set out in their reporting, its opinion as to the reasons why a gender pay gap exists and the measures that are being taken or that are proposed to be taken to eliminate or reduce the gender pay gap. It is important to understand that there may be varying factors that have influenced your figures such as historical changes, patterns of progression or industry sector. It is also important that your response to any gender pay gaps is proactive and demonstrates positive changes. In reviewing any gaps, companies may need to revisit the organisations policies and practices in the relevant areas such as recruitment, retention, Diversity & Inclusion, and remuneration.
Non-compliance
A company employee would have the option to take a case against their employer in the WRC in respect of non-compliance with the Act. It does not provide for compensation for the employee or for a fine to be imposed on the company however an order can be imposed on the employer to take a specified course of action to comply with the Act. All decisions are published and will include the names of the employer and the employee.
If you are an organisation based in the Republic of Ireland and require further information or advice relating to HR, please do not hesitate to contact our office on (066)7102887 or email us at info@thehrsuite.com. For more information visit https://thehrsuite.com or read our blog.
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