When calculating their gender pay gap, how should employers report the pay of employees who are on maternity leave, or other family leave?
The draft Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 provide that employees should not be included in the employer's gender pay gap calculation if, during the relevant pay reference period, they are being paid at a reduced rate, or nil, as a result of being on leave. This includes employees on maternity, paternity, adoption, parental or shared parental leave. Therefore, employees on maternity leave, or other family leave, should be included only if they are in receipt of full pay during the pay reference period on which the employer's calculation is based.
Where an employee is on full pay but is on leave during the relevant reference period, the employer should calculate the employee's hourly pay using his or her normal contractual hours, or for an employee who does not have normal hours, his or her average hours over the 12 weeks before the end of the relevant pay reference period. Any weeks in which the employee did not work should be discounted; the average should be taken from the last 12 weeks in which the employee did work.
The exclusion relating to employees on reduced pay while on family-related leave does not apply to reporting on the payment of bonuses. Employees who have been on family-related leave for some or all of the 12-month period to which the bonus pay calculations relate should still be included.