How does an employer calculate how many employees it has for the purposes of the gender pay gap reporting duty?
The gender pay gap reporting duty applies only to employers with 250 or more employees.
The number of employees should be counted on the relevant date. While the draft Regulations setting out the gender pay gap reporting duty set a relevant date of 30 April each year, the Government has indicated (in its consultation on mandatory gender pay gap reporting for public-sector employers) that this will be amended to 5 April. The Government has said that, subject to parliamentary approval, the Regulations should come into force in early 2017. Therefore, employers with 250 or more employees on 5 April 2017 will be required to report their gender pay gap figures in the first annual reporting round. They should then re-count their employees on 5 April in each subsequent year.
It is the total headcount that should be counted, not the number of full-time equivalent posts. So each employee should be counted regardless of the number of hours they work.
The draft Regulations define an employee as someone who ordinarily works in Great Britain under a contract of employment governed by UK legislation. However, the Government has indicated that the definition of employee that will be used in the final version of the Regulations will be that under s.83 of the Equality Act 2010, which includes apprentices and workers who have a contract personally to do work.