Gender Pay Gap Reporting Update

As highlighted in our previous article in June 2022 entitled “Employers to Begin Mandatory Reporting of Gender Pay Gap…

As highlighted in our previous article in June 2022 entitled “Employers to Begin Mandatory Reporting of Gender Pay Gap Information for the First Time” (link below), the Gender Pay Gap Information Act 2021 (“the Act”) came into force on 31^st May 2022. The Act amends the Employment Equality Act 1998 and aims to ensure greater transparency regarding differences in the remuneration of employees by reference to gender.

The Act requires relevant employers to do the following:

• • Publish an annual report identifying any gender pay gaps within their organisation; and
  • Publish a “relevant report” explaining the reasons for such a pay gap and identifying steps it can take to reduce or eliminate it.

The reporting requirements are being rolled out incrementally based on the size of the employer. Employers with 250 or more employees have been required to report since December 2022. Those employers were required to select a date in June 2022, a so-called “snapshot” date, and report within six months.

From 31^st May 2024, reporting requirements have been extended to employers with at least 150 employees. The Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) (Amendment) Regulations 2024 update the Employment Equality Act 1998 (Section 20A) (Gender Pay Gap Information) Regulations 2022 by amending the definition of “relevant employer” to an employer who employs not less than 150 employees on the relevant date. All employers with at least 150 employees were required to choose a snapshot date in June 2024 and they are required to report within six months of that date.

The 2024 Regulations also introduce changes to how gender pay gap reporting is carried out. These changes include the following:

1. An update to the formula used to calculate an employee’s working hours.

• • A change to the treatment of share options and interests in shares which are now treated as benefits in kind as opposed to bonus remuneration.
  • Clarification that basic pay includes payments made to employees (by the State and/or by an employer) during adoptive, maternity, paternity and parent’s leave.

Reporting requirements will be extended to employers with at least 50 employees in 2025.

Links –

• https://aocsolicitors.ie/employers-to-begin-mandatory-reporting-of-gender-pay-gap-information-for-the-first-time/
• https://www.irishstatutebook.ie/eli/2021/act/20/enacted/en/print.html
• The Employment Equality Act 1998 (section 20A)(Gender Pay Gap Information) Regulations 2022
• The Employment Equality Act 1998 (section 20A)(Gender Pay Gap Information)(Amendment) Regulations 2024
  

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Author – Jenny Wakely