The PTD mandates that employers across the EU engage in gender pay gap reporting, ensuring transparency and equality. This requirement applies to employers with at least 100 employees, although some countries may impose this on smaller employers.
Organisations with 250 or more employees must submit reports annually. Those with 100 to 249 employees need to report every three years. Key reporting areas include:
– The overall gender pay gap
– The median gender pay gap in additional or variable pay elements
– The ratio of female to male workers receiving additional or variable pay
– The proportion of female and male employees in each quartile pay band
– The gender pay gap within worker categories, detailed by basic salary and additional or variable pay elements.
Custom-Tailored Legal Guidance
1. Bespoke Legal Advice:
Our team of legal experts at Ius Laboris provides personalised advice tailored to your organisation’s specific needs. Whether you require strategic guidance on addressing identified pay gaps or need assistance in justifying gaps based on objective factors, our bespoke legal support ensures you comply with the PTD.
2. Comprehensive Pay Gap Analysis
Beyond identifying pay gaps, GAP IQ offers solutions for addressing or justifying these gaps where necessary. Our service includes crafting legally sound justifications for pay disparities where legitimate reasons exist, helping to safeguard your company against potential regulatory scrutiny.
GAP IQ combines automated data processing with expert legal knowledge. This creates a hybrid solution that addresses all aspects of compliance. This combination ensures that your organisation not only identifies pay gaps but also receives actionable recommendations on how to address or justify them.
3. Compliance-Ready Reporting
We generate comprehensive reports that fully comply with the EU Pay Transparency Directive. Our solution provides clear, concise documentation ready for submission to relevant authorities, ensuring your organisation meets all pay reporting obligations with ease.
4. Further help
– Strategic Interventions: Our service includes crafting legally sound justifications for pay disparities where legitimate reasons exist, helping to safeguard your organisation against any potential claims.
– Continuous Monitoring and Updates: As regulations evolve, so does GAP IQ. Our service includes continuous monitoring of legal developments and updates to ensure your organisation remains compliant over time, minimising the risk of penalties or reputational damage.
Our phased expert service can be used individually or as part of a fully- or partially-managed solution tailored to your organisation’s needs. The four phases set out below, represent different levels of the solution you can opt for.
Phase 1 – Assessment & Categorisation
In this initial phase, we conduct a comprehensive review of your current pay practices, policies, and data to pinpoint gaps or areas for improvement. This involves two days of consultancy with your reward team to thoroughly assess and document your current practices and data. We provide high-level feedback at this stage, focusing on categorisation—a crucial aspect of the PTD. Organisations must categorise distinct groups of workers engaged in similar or equal-value tasks. This step is vital for all organisations, as employees will gain rights to the average pay within their category. We offer support and guidance to ensure your job categories comply with PTD requirements and are consistent across various jurisdictions.
Phase 2 – Data Collection
This phase is critical for gathering the data needed to calculate mean and median pay discrepancies, clarify compensation disparities, and guide pay equity efforts. We advise on data collection, including specific pay elements, the data calculation period, and the snapshot point for reviewing past data. Additionally, we identify other data to capture to uncover potential reasons for pay gaps, such as performance, length of service, TUPE/ARD implications, regional differences, and market rate analysis.
Phase 3 – Calculations
We use advanced techniques to perform detailed calculations on collected data, helping you identify gaps and mitigate risks. This analysis includes examining evidence of bias in justifying pay discrepancies. Only objective reasons can explain pay gaps, necessitating a review of previously identified potential reasons for objectivity. We apply statistical tests to detect disparities, especially between men and women.
Randomisation Tests
A randomisation test is a straightforward method that assumes no difference between two groups if the data’s arrangement is irrelevant. By shuffling data points, resampling, and repeatedly calculating group differences (about 10,000 times), we assess whether observed differences are substantive disparities rather than chance. This approach ensures potential gap reasons remain relevant and supported by strong evidence.
Identification and Analysis of Reportable Gaps
We recommend calculating gaps using the PTD’s methodology, specifically calculating hourly rates to address variations caused by part-time employees and staff status changes, aiding in accurate gap identification.
Phase 4 – Legal Obligations
In the final phase, we provide comprehensive guidance on key legal obligations beyond mere pay gap reporting, promoting a fair and equitable workplace. This phase covers essential obligations, ensuring thorough preparation for various PTD aspects. Key areas include:
– Publishing pay ranges during recruitment
– Prohibiting inquiries about applicants’ pay history
– Ensuring transparency in pay setting and progression
– Prohibiting pay secrecy clauses
– Explaining the the Works Council’s role in compliance oversight.
Expertise You Can Trust
With years of experience in HR law and a deep understanding of EU regulations, Ius Laboris is uniquely positioned to guide your organisation through the complexities of the EU Pay Transparency Directive.
Tailored Solutions for Every Business
Whether you operate in one country or across multiple EU member states, GAP IQ is designed to scale with your organisation, offering tailored solutions that fit your specific compliance needs.
Cost-Effective Compliance
GAP IQ not only ensures compliance but also helps you achieve it in a cost-effective manner, reducing the time and resources typically required for such processes.
We provide help in key areas, such as:
– Advising on which entities are in scope and what counts as ‘pay’
– Providing specialist job-levelling expertise
– Calculating and analysing likely reportable pay gaps
– Identifing and advising on justification defences, where needed
– Preparing for requirements to publish pay ranges and other non-reporting obligations.
GAP IQ is ideal for organisations with 150 or more employees with operations within the EU that are looking to streamline their compliance processes and avoid the risks associated with non-compliance. If you are committed to fostering a fair and transparent workplace, GAP IQ is the solution you need.
