Gender Pay Gap Reporting Regulations – December 2022 Deadline

The Gender Pay Gap Reporting Regulations  have finally been published and are effective from 31 May 2022. The long awaited Regulations make Gender Pay Gap (GPG) reporting mandatory for the first time this year and provide much needed clarity for employers on their reporting obligations.

The GPG is the difference between the average hourly earnings for men and women. The purpose of GPG reporting is to encourage employers to assess and address the GPG that may exist within their organisation. In Ireland, the GPG is currently estimated at around 14% and this increases dramatically once an employee has children (i.e. the motherhood gap). The Regulations follow the introduction of the Gender Pay Gap (Information) Act 2021 and provide detail on how the GPG is calculated and reported.
 
Employers in scope must pick a snapshot date in June for the purpose of assessing its GPG and publish its report within 6 months of that date. The report must include the following gender pay gap information and the Regulations helpfully provide guidance on how to calculate each metric:
 

 
In addition, where the report shows that a GPG exists, the employer must include a statement setting out a) in the employer's opinion, the reasons for the differences relating to remuneration; and b) the measures (if any) being taken, or proposed to be taken, by the employer to eliminate or reduce such differences.
 
Reporting will be an annual obligation and will initially apply to employers with 250 or more employees. However, this is expected to include employers with 150 or more employees from 2024 and 50 or more employees from 2025. Employers must publish their report on their website for a period of at least 3 years in a manner that is accessible to its employees and the public. If the organisation does not have a website then it must be available in physical form for inspection.
 
The Irish Human Rights and Equality Commission has oversight for compliance with the Regulations and may apply to the Circuit/High Court for an order requiring an employer in breach to comply. In addition, employees may make a complaint to the Workplace Relations Commission requesting an order that their employer complies with the Regulations. While there is no direct financial penalty for failing to report or having a GPG, it will likely result in public scrutiny and difficulty recruiting and retaining talent in an already stretched employee market. In addition, while having a GPG does not mean that there is unequal pay within an organisation, it could still fuel a rise in equal pay claims.
 
Next Steps
 
Employers with 250 or more employees must now pick a snapshot date in June 2022 for the purpose of calculating its GPG. Employers should ensure that they have systems in place to capture and analyse the relevant information and to calculate their GPG in preparation for the reporting deadline in December 2022.
 
Reporting will be an annual obligation going forward and it will be extremely important for employers to take steps to reduce any GPG that does exist within an organisation before the next reporting deadline!