HR Masterclass seminar

Free HR Masterclass Seminar

HR Masterclass seminar

Join us on Thursday 9th November at Livingston Football Club for a free HR masterclass seminar including how to prepare your business for the introduction of General Data Protection Regulation (GDPR) coming into force from May 2018 plus an opportunity to network with local businesses.

We have also teamed up with the guys at The Logic so they can give you some overall guidance on overarching requirements on the protection of your data.

The Masterclass will cover both IT and data security, risk assessment completion and the requirements on processing HR and employee data. There will be lots of hints and tips for you to take away and implement and you will leave with clarity on your obligations and be comfortable on any changes you need to make. We promise no scare mongering!

There will also be an opportunity the opportunity to have one to one sessions with IT and HR experts.

When: Thursday 9th November

Time: 9am for 9.30am start until 11.30 (teas and coffees provided)

Where: Livingston Football Club (plenty of parking)- Meadow Bank Suite

Please feel free to share with colleagues and fellow business associates who you think might be interested.

In addition to this, Solve are offering a free Contract of Employment document review consultation.


To reserve your place please complete the form below:

  • Please select if you have a preferred date for a Free Contract of Employment review consultation.
HR consulting services

10 things to consider when choosing a HR supplier

HR consulting services

As an HR and Employment Law Consultancy, we’re often asked to speak with prospective Clients who are ‘beauty parading’ a number of HR consultancies before deciding on the right one for them.  Often, what happens though is much like when you love all the things on a restaurant menu or try too many beautiful fragrances in a local department store – they can’t decide!

They see that there are differences – style and approach to managing HR dilemmas, culture fit with their business or even just plain old fashioned price, but most of the time, the consultancies offerings merge into one and they just can’t determine what consultancy would best meet their needs.  Sound familiar?

If you are scratching your head trying to decide what provider is right for you, we’re here to help!  Here are our top ten things to consider when choosing and using your HR supplier – no bias – promise!

  1. Know what your HR needs are

Are you a small start up business with one employee or a more established SME with a number of staff?  It’s very common in today’s fast paced marketplace that businesses can grow at a rapid rate and often, what worked for you as a start up, can quickly become out of date.  Therefore, when choosing your HR supplier, you need to be really clear on what your HR needs are today and what they are likely to be tomorrow and choose an HR supplier that is flexible and skilled enough to deliver both.  Do you want a call centre or IT solution that you can contact/use 24/7 or do you want a face to face solution?  Do you want to be sent templates to complete or letters prepared for you and ready to send?  Do you want only the Directors of the business to liaise with your HR supplier or do you have managers that require HR support also.  By establishing your current and future needs, you will be more prepared for any supplier meetings and may even be able to de select potential suppliers just by looking at their website!


  1. Evaluate their expertise

How many times have we gone into businesses where the owner tells us that they have the HR basics covered, contracts of employment, employee handbooks, absence management etc.  Sometimes of course this is all there and more and is a great foundation for advanced HR strategy and practice, but often, when we review these documents, they are at best ill thought out or at worst out of date legally.  This leaves the business and its Directors exposed to legal risk.  It pays to check who you are partnering with in advance – how long has the consultancy been in business?  What’s their operational structure?  Who will be dealing with your issues on a day to day basis and what are their qualifications? How often will the supplier update your paperwork and ensure that it complies with legislation?  Can they carry out small and larger scale change projects? Have they ever been to a tribunal?  These and many other questions will soon tell you about the credibility of your supplier and their expertise.


  1. Eye up the competition

No business owner has time to meet with every HR supplier that’s out there; however, once you have established your needs, you can quickly pick which suppliers you want to meet with.  Our advice would be to keep those meeting numbers low – maximum three potential suppliers.  Any more and your head will be swimming with choice and you will be left in the scenario of not knowing who to choose for the best.


  1. Establish if there’s a culture match

Now you have chosen the three suppliers you want to meet with and evaluated their expertise – it’s time to look at what kind of business they are.  What are the Directors/Business Development Manager like?  Are they aloof or down to earth?  Do they appreciate your challenges and have empathy with you?  Will they work with you as a business partner or are they simply there to get the deal?  How do they treat their staff? How long has their team been established?  Questions like these really focus the mind on how alike the supplier is in terms of culture and fit and will help you make a better choice


  1. What are they offering?

HR suppliers can vary in terms of what services they offer and how these are packaged for Clients.  It pays to choose a supplier who can be flexible to meet your needs.  Sometimes, before you sign up to a retained agreement, you may want to ‘try before you buy’ and work with your preferred supplier on a small piece of work to confirm that you can work together and that you are happy with their style and approach to dealing with your HR challenges.  If a supplier can’t offer you this – why not?  Retained agreements are great for both Client and supplier, however, if the supplier is the right one for you, they should work with you in a way that makes you feel the most comfortable before signing you up to any longer term commitment.  Of course you may want to commence a retained agreement immediately and that’s great.  Just make sure you are happy with all the terms of the agreement before doing so.


  1. What else can you do for me?

As your relationship with your HR supplier becomes more of a partnership, you may wish to use them to support other people related processes in your business.  Recruitment is a great example of this.  Recruitment can be a time and cost drain on your business and it can be a weight off your shoulders to work with a trusted partner to support you in getting it right.  However, many HR suppliers don’t offer additional services such as Recruitment either as part of their retained agreements or as a stand alone offering.  Therefore, it pays to check that your supplier offers the full spectrum of HR activities and has in house expertise in these areas that can help you when you need.


  1. Take up References

As you would with any new employee, we would always recommend taking professional references before committing to a supplier.  If they are as good as they say they are, then they should be able to provide at least 2-3 professional references from businesses, similar to your own, that you can speak to independently and ask any questions that you may have regarding the business as a supplier of professional HR services


  1. So what’s the deal?

Once you have agreed how you will work with your supplier and taken references, you need to review and agree to business terms.   As best practice, your preferred supplier should have provided you with a written proposal for the work to be undertaken, including the detailed elements of that work and any related costs.  Be sure to clarify what exactly the costs include and exclude e.g. project work and provision of third party services such as Occupational Health Consultations may be charged separately from any retained agreements.   Once you have agreed to the proposal, the supplier should follow up with a contract for services.  Any contractual agreement should be reviewed by Client and Supplier on an annual basis and should be flexible enough to be revised by both parties as required at that stage.


  1. Measuring Success

Your HR supplier, should, over time, be able to demonstrate how they are positively impacting on your business.  Once you commence working with your supplier, it might be a good idea to sit down and discuss with them how you will, together, ensure a return on investment.  Whether it’s reduced absence or turnover rates, increased employee satisfaction and engagement, your HR supplier should be able to establish early on how their success can be measured, should you choose to do so


  1. Use your HR service!

Finally, whilst you may not have HR issues arising daily, it pays to communicate actively with your supplier and discuss with them pro active HR strategies such as engagement, employee communication and involvement and so on.  Remember HR is not just about being reactive and fire fighting but getting the most from your people for business benefit.  There will always be something to do and your HR supplier should support you in finding the ‘magic dust’ that will take your business from good to great!


Contact Solve today to discuss your needs.

Employment Law

FAQ’s on Employment Status

Employment Law

You may have heard the term employment status on the news at the end of October 2016 in relation to Uber drivers.  This has prompted many business owners to think about the status of the people they engage.

1.     What is Employment Status?

  • Employment status looks at the nature of the relationship between an employer and the people that work for that company / provide services to that company.
  • Employment status looks at how bound and obliged the 2 parties are to each other and defines the employment status accordingly.


2.     What are the key categories?

The key categories when looking at employment status are:

  • Self employed
  • Workers
  • Employees

The Uber drivers were found to be ‘workers’ and not self employed


3.     Why is Employment Status important ?

Employment status is important because it determines employment rights

(Self-employed have the least rights, employees have the most rights)

  • Independent contractors – the truly self-employed have very few rights in relation to their work; for example, they have no entitlement to be paid minimum wage, holiday pay or sick pay.
  • Workers have various employment rights such as the right to minimum wage, paid holiday, appropriate daily rest breaks,
  • Employees have all the employment rights that workers have but have some additional protections including (subject to length of service) the right to: bring an unfair dismissal claim; request flexible working; statutory maternity pay; redundancy pay; and to a minimum notice period.

The HMRC website has an employment status indicator that you can use to look at how the Inland Revenue view employment status with respect to the paying of taxes.


4.     Surely if I agree with someone that they are self-employed and they are happy with that, then that is okay

  • That might sound okay and work out okay at the start of the relationship, however if the person is truly a worker or truly an employee attaching the label of self-employed to them doesn’t make them self-employed.
  • Furthermore it is always a good idea to look at a relationship – not when things are going well – but when things are not going so well. For instance when you want to part company with the person – if they are not self-employed then parting company with them may not be as easy as it would be if they were truly self employed
  • When determining employment status a  court will look at the reality of the situation – they will look at what happens in practice
  • A court will look at the detail of the relationship with a fine tooth comb


5.     How do I work out what someone’s employment status is?

To work out someone’s employment status there are many different tests but here are a few key areas to look at:

  • One of the most important things to consider is ‘mutuality of obligation’ – does mutuality of obligation exist between the company and the person?  If there is mutuality of obligation then that points towards the person being an employee. If there is a lack of mutuality of obligation then that points towards the employment relationship being looser and therefore the person could very well be a worker or self-employed.
  • It is worth looking at control also. How much control do you have over the person?
  • In the Uber case the court looked at the amount of control the employer had over the drivers. The court looked at the substance of the relationship between employer and driver – not the language of the documentation issued to the drivers – again just because you call someone self-employed does not make them so
  • The Uber situation isn’t new law – it was a case of applying old law to a set of modern circumstances.


6.      So once I have worked out employment status for each person then I don’t need to bother checking it again?

  • That is a very good question.   It is worth being aware that some employment relationships develop over time and can mutate/change into something different. For instance – someone may start off as a casual worker but over time there becomes a mutuality of obligation that makes them move from being a casual worker to actually being an employee.

For more information and advice please visit out Employment Law section or simply Contact us


6 Tips to improving your recruitment results


Unfortunately, regardless of what industry sector you operate in, hiring the right employee is a challenging process.

Hiring the wrong employee is expensive, costly to your work environment, and time consuming.  Here are some hints and tips to help you.

1. Define the job before hiring an employee

To do this you should create a person specification and job description.

What is a person specification? A job specification describes the knowledge, skills, education, experience, and abilities you believe are essential to performing the particular job.

What is a job description? A job description describes the duties, responsibilities, required qualifications, and reporting relationships of a particular job.

2. Plan your recruiting strategy

 Schedule a meeting with your HR Recruiter and Hiring Manager. During this meeting it is important to discuss the following;

  • Costs eg advertising/agency fees
  • The best place to advertise the role
  • Determine where to advertise the position to develop the most exhaustive candidate pool, including asking for internal referrals.
  • Determine who will interview the potential employees
  • Decide upon the candidate screening questions for the HR recruiter
  • Decide if testing will assist you to select the best candidate for the job
  • Timescales – closing date and interview date

3. Review credentials and applications carefully

Screen all applicants against this list of qualifications, skills, experience, and characteristics.

  • Read the customised cover letter. Look especially at what the candidate says they are looking for in their next job.  Is the statement customised to your job or does it describe any job in the world? Usually, unqualified applicants fail to write a cover letter. Choose, or choose not, to continue your CV review at this point.
  • Scan the CV to obtain an overall impression of the applicant. Look especially at presentation, spelling and grammar, and their attention to detail.
  • In the first skim, look for the easy-to-find qualifications. (As an example, if you are requiring a college degree, does the applicant have one?) If not, reject the CV or place it in your “maybe” meets qualifications pile.
  • Review the most recent employers and the applicant’s stated experience, accomplishments, and contributions. At this point, you should find significant cross-over between the applicant’s CV and your requirements.
  • Review your selected CVs against your criteria and each other.

Ask is there anything I should look out for as a cause for concern in a CV?

  • employment gaps
  • evidence of decreasing responsibility
  • evidence of a career that has reached a plateau or gone backwards
  • short term employment at several jobs, and
  • multiple shifts in career path.

 4. Pre-screen your candidates

The purpose of this is to assess the skills and personality traits of potential candidates, which is usually done via telephone.  Additionally, a pre-screening interview, gives you the chance to find out salary expectations and notice required.

5. Ask the right job interview questions

  • Questions about the applicant
  • Questions about their work experience and knowledge
  • Questions about why they want this particular job
  • Consider using competency-based questions

What is a competency based interview?

Competency based interviews questions can give valuable insights into an individual’s preferred style of working and helps to predict behaviours in future situations. Every job will have a set of key competencies, some of which are essential and others desired, but all are required to perform the job properly.

6. Be prepared to give reasons for rejection to unsuccessful candidates who ask.

For any further help with your recruitment process and techniques contact Solve today.

Employer Right to Work Checks

TUPE and Redundancy Management Case Study

An overview of Solve’s experience.

The following article outlines a complex TUPE project Solve undertook on behalf of a client who was taking on a service.

In this particular situation, we advised a business who specialises in earthworks and infrastructure services as well as coal extraction and distribution who had won a major contract to load and haul blasted rock from a quarry face to the processing plant.  The out-going contractor was understandably aggrieved about losing the contract and determined not to be helpful during the transfer.

Both sides accepted that TUPE applied to the change in contract.  The out-going contractor sent over a list of 47 employees they said were assigned to the organised group, confirming they were dedicated to the contract and therefore should all transfer over under TUPE.

Drawing on our experience of advising businesses on TUPE transfers we conducted due diligence on behalf of the business, and on analysing the tender document they had produced to win the contract, sorting headcount into designated roles and responsibilities and speaking directly with employees, determined that 6 of the 47 employees cited by the out-going contractor were not wholly assigned to the contract and should therefore not transfer under TUPE.  After debate with their in-house legal team the out-going contractor accepted and agreed to re-deploy the 6 employees.

We were then left with 41 employees to consult with.  As the new business were proposing to operate the contract in a radically different way and with new more advanced machinery, making a leaner more cost-effective service they were proposing to make 14 employees redundant and change work patterns from a shift based system of 4 on 4 off to working Monday – Friday.

The project was broken down into two distinct parts.  Firstly, to manage the entire collective redundancy consultation process pre-transfer which involved 40 employees including those on long term sick.  Secondly, to carry out the necessary TUPE consultation process with the 40 employees transferring to our client.  All consultations were to be concluded within a six week timeframe.

During this process, we managed the following activities:

  • Provision of support for the Staff Representatives taking part in both the TUPE and redundancy consultations, confirming their role and responsibilities and how to support employees during the process. Representatives had been elected but they didn’t fully understand their role.  This had led to confusion and rumour both of which ended following ongoing concentrated support.
  • Group consultation on behalf of our transferee for the TUPE process along with the out-going contractor.
  • Scheduling inviting and scripting individual TUPE consultation meetings on site with all 40 employees.
  • Inviting, scripting and holding individual consultation meetings on site with all 40 employees on redundancy, offering outplacement support and ultimately achieving 14 voluntary redundancies and that combined with the 6 employees the out-going contractor retained, meant that there were no compulsory redundancies.
  • Collating questions and issues arising from group consultation with regards to TUPE and Redundancy, drafting responses and publishing information. Clear and firm handling of the issues raised both during and after consultation meetings ensuring employee’s confidence in the process.
  • Co-ordinated, drafted and issued redundancy notice letters to all those employees who took voluntary redundancy.
  • Co-ordinated, drafted and issued letters confirming the TUPE transfer terms and measures accepted by all employees which also confirmed they were no longer at risk of redundancy.
  • Drafted and issued letters to all transferring employees that their new working hours would be initially on a two month trial period.
  • Collated information for payroll and pension for the 28 employees who transferred.
  • Maintained regular communication with the Directors allowing speedy resolution of any issues and a co-ordinated approach to bring the project to conclusion.
  • Issued documentation to transferring employees so that employee records were up to date and the client complied with obtaining right to work documentation as appropriate.
  • Held regular meetings with the Trade Union for those employees who were members. Although there was no collective agreement in force, the Trade Union were altered to the potential redundancy situation and we pro-actively engaged with them in an attempt to prevent hostility.

The outcome, was that the TUPE consultations took place within the six week window and transfers went ahead as planned with no issues or resignations.  The Directors were complimentary of the advice and support provided during what they had found to be a stressful complex legal process.

The redundancy consultation process was conducted successfully with no compulsory redundancies taking place.  There were no formal appeals or Employment Tribunal claims as a result of redundancies and the majority of employees were able to secure new employment.

All of which meant that our client from day one of the transfer, was able to concentrate on providing an excellent service to their new client.

More information on TUPE – Transfer of Undertakings Protection

What you need to know on Gender Pay Gap Reporting

The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 introduced an obligation for larger employers to report on salaries and pay and the differences in pay between men and women. The key points;

  • Reporting requirements will apply to each separate legal entity (i.e. the employer) with at least 250 employees within a group structure
  • The legislation focuses on employers with 250 or more employees delivering a report on the 5th April of a given year- you must use your actual headcount – FTE and length of service of employees does not matter.
  • The Equality Act 2010 makes it unlawful to prevent employees from having discussions to establish if there are differences in pay. However, an employer can require their employees to keep pay rates confidential from people outside of the workplace.
  • If an employer argues that ‘they cannot afford to pay’, this will not be a sufficient defence if discrimination on the grounds of sex is the reason for the differences in pay rates.
  • Also to claim that women are paid less than men because they are ‘prepared to work for less’ is not a defence.

The Business Case for Equal Pay:

Some of the barriers to gender equality and diversity include lack of opportunity to balance work with personal responsibilities, occupational segregation, gender bias and the gender pay gap.

If employers do not give women and men ‘equal pay for equal work’ then they run the risk of equal pay tribunal claims.  Furthermore, it can result in failing to attract the best candidates and retaining staff.

It makes good business sense to treat women and men equally.

If you understand the barriers to equality and diversity you are more likely to eradicate the inequality and improve diversity.

As an employer you are under a legal obligation to provide equal pay.

In the Britain, there is an overall gender pay gap of 19%. This shows that a woman, on average, earns around 80p for every £1 earned by a man.

How to conduct an Equal Pay Audit:

  1. Gather information

The first step of an equal pay audit is for the employer to assemble information about the organisation’s roles and pay arrangements. The employer could instruct an equal pay consultant to assist with the audit, and should involve managers and trade union or employee representatives.

The Equality and Human Rights Commission provides an equal pay review audit toolkit for employers.

Close the Gap is a Scottish partnership project looking at and working on women’s participation in the labour market.  This site has some useful information for employers.


  1. Determine which jobs are equal

Like work

Work that involves similar tasks requiring similar skills, and where any differences in the work are not of practical importance.

Job titles are the most common indicator of like work, but they can also be misleading. You need to review the job titles in your system early in your audit to ensure that the same, or very similar, titles really do indicate like work.


Work of equal value

Work of equal value is work which is not the same and is not rated as equivalent, but is of equal value in terms of factors such as effort, skill and decision-making.

Jobs that may be entirely different in content might be considered work of equal value when the demands made on the employees doing them are assessed. Do not assume that different types of jobs cannot be of equal value.

Applying a fair analytical job evaluation is the most reliable way of assessing whether jobs are of equal value.

If not using analytical job evaluation, you need to find an alternative means of checking whether employees are doing work of equal value.


Work rated as equivalent (under a job evaluation study)

Work rated as equivalent is work that has been rated under a fair job evaluation scheme as being of equal value in terms of how demanding it is.

Please note: grading that is not based on analytical, gender neutral job evaluation will not provide you with an effective defence against equal pay claims.


  1. Identify pay gaps

Once the employer has determined which jobs are equal, it should calculate whether or not there are gaps in pay for equal work.


  1. Determine the causes of pay gaps

If an equal pay audit reveals that the organisation is not giving ‘equal pay for equal work’, it should determine whether or not this is due to sex.


Can you argue that it is due to another reason – the ‘material factor defence’?

Possible material factor defence arguments include:

  • market forces, recruitment and retention factors, where the additional pay was made in response to demonstrably higher market rates than the normal grade rate. (you would need clear evidence of this, that the comparison is appropriate and the market information is not influenced by discriminatory factors e.g. job segregation)
  • differences in individual performance (you would need clear factual evidence of how this has been assessed)
  • differences in experience (you need to be extremely careful with this one and be able to argue that the difference in pay reflects differences in competence, performance or output)
  • differences in collective bargaining arrangements.


For something to be considered a ‘material defence’ – it has to be significant and relevant. It has to be the real reason for the difference and not a sham/pretence. It has to be the ‘cause’ of the difference in pay between the woman and her comparator.

For something to be considered a material defence the material factor must not be directly discriminatory and if it is indirectly discriminatory, the difference in terms must be justified.  (objective justification)


Indirect discrimination is where a pay system, pay policy or other policy, or a certain arrangement has a disproportionate adverse impact on women compared to their male comparators. If you cannot objectively justify it then it will not hold as a defence.

  1. Develop an equal pay Action Plan

If you discover ‘unequal pay for equal work’ what do you do?

Plan towards providing equal pay:

  • Introduce Equal Pay Policy
  • Train managers to make decisions that do not discriminate on basis of gender
  • Introduce initiatives to minimise occupational sex segregation
  • Monitor pay on a regular basis
  • Look at your processes – how do you determine your pay structure? How do you determine pay increases?


Understand that this is not a one off process. Implementing equal pay must be an ongoing business objective and kept under review.

Although the regulations will not require the publication of action plans, the non-statutory guidance will encourage employers to do so voluntarily where appropriate.


Moving Forward in preparation for pay gap reporting:

  1. Identify ‘relevant’ employees

Regulations apply to employees within the meaning of section 83 of the Equality Act 2010:

  • Any employees as per the Act who are paid during the reference period would be included: employment under a contract of employment, a contract of apprenticeship or a contract personally to do work. Therefore zero-hours contractors, apprentices and some consultants would be included.
  • Those who are not based in Great Britain but are still regarded as being employees of employers within scope could still be covered because of a strong connection with Great Britain.
  • Self-employed people (those who are not employees for the purposes of the Equality Act 2010) should not be included in the overall gender pay gap calculations (someone who does not have a contract of employment or a contract to personally do work with the employer)
  • Partners in a firm, including LLP members, are not included
  • Agency workers will be taken into account by the employer with whom they have the contract of employment or a contract personally to do work (generally their agency)

Note – employer is not required to include data relating to a relevant employee if:

  1. Person is employed under a contract personally to do work, and
  2. The employer does not have, and it is not reasonably practicable for the employer to obtain the data

So some self-employed workers may be part of the 250 employees but actual data may not be included if it is not ‘reasonably practicable’ to obtain this information



  1. Identify the pay period
  • Period when the employer pays the ‘relevant employee’ basic pay, whether weekly, monthly etc
  • If not paid basic pay then look at the period the employer most frequently pays the employee one of the elements of ordinary pay as defined below

3. Identify the ‘relevant pay period’

  • Means the pay period within which the ‘snapshot date’ falls (snapshot date is the 5th of April each year)



  1. Identify the ‘full-pay relevant’ employees
  • When looking at mean and median hourly rate of pay differences the Gender Pay Gap calculations will cover only those employees receiving their full pay during the specified pay period.
  • The bonus pay gaps look at relevant employees not just full-pay relevant employees
  • Consider who is a ‘full-pay relevant employee’ – this means someone who is not, during the relevant pay period, being paid at a reduced rate or nil as a result of the employee being on leave (so part time staff are classed as ‘full-pay relevant employees’ as long as they are earning their usual/full pay during the relevant pay period). Therefore staff receiving their full pay during parental or sick leave should be included in the mean and median hourly rate of pay differences but someone receiving less than their full pay should not be included.


  1. Identify working hours in a week
  • Normal / usual working hours per week
  • If no normal / usual working hours then average working hours per week using 12 week period ending with the last complete week of the relevant pay period. If no work done then ignore that week and go back a further week(s) to get your 12 weeks to take average from
  • If person has not been employed long enough to have 12 week period then use a ‘number which fairly represents the number of working hours in a week’ e.g. contracted hours or average hours of other staff in same job


  1. Then divide into 2 categories (male and female)


  1. Define ‘ordinary’ pay
  • “Ordinary Pay” includes basic pay, paid leave, maternity pay, sick pay, area / geography allowances, shift premium pay, shift allowances, and other pay (including car allowances paid through the payroll, on call and standby allowances, first aider or fire warden allowances).  Includes all allowances paid in money that have been earned in the pay period as part of the employee’s job
  • It does not include overtime pay, expenses, the value of salary sacrifice schemes, benefits in kind e.g. company cars, redundancy pay, other types of severance and termination pay, pay in lieu of leave, arrears of pay and tax credits, and pay for a different period


(If a company feels that their reporting results are skewed because of the greater take up of salary sacrifice schemes by one sex more than the other then this can be explained in the narrative summary. Similarly if a company feels that female employees’ earning potential is being depressed because they need to or opt to work family friendly hours and don’t therefore earn shift allowances/shift premium pay this can be highlighted in the narrative summary)


Pay is to be calculated before deductions for PAYE, national insurance, pension schemes, student loan repayments, compulsory deductions e.g. court-imposed payments.

Above to be in line with national gender pay gap figures, definition of pay is consistent with that used by the Office of National Statistics (ONS) for the Annual Survey of Hours and Earnings (ASHE). 


  1. Define bonus pay
  • “Bonus pay” is any remuneration that:
    • is in the form of money, vouchers, securities, securities options, or interests in securities – Remuneration in these forms is to be treated as paid to the employee at the time, and in the amount in respect of which, they give rise to taxable earnings or income as per the meaning of taxable earnings or income within ITEPA 2003 – Income Tax (Earnings and Pensions) Act
    • relates to profit sharing, productivity, performance, incentive or commission
  • Bonus pay does not include – ordinary pay, overtime pay, remuneration in relation to redundancy or termination of employment


  • It does not matter if the bonus is contractual or discretionary


  • For bonus pay gap info: The bonus information must be based on the preceding 12-month period, beginning with the 12 months leading up to 5th April (leading up to 5th April 2017 for the first set of figures to be published).


  • Gender pay gap calculations and earning quartiles are all based on headcount rather than FTE (full-time equivalent). If a gender bonus gap has been skewed where a percentage bonus has been paid to full-time and part-time employees, the employer may want to highlight that in their narrative summary.


  1. Define Hourly Rate of Pay
  • Have your relevant pay period
  • For each person identify all amounts of ordinary pay and bonus pay paid during the relevant pay period
  • Don’t include any ordinary pay that would normally fall to be paid in a different pay period
  • For bonus pay paid during the relevant pay period – if this bonus is not just for that pay period then divide the amount by the length of the bonus period** and multiply it by the length of the relevant pay period** (basically pro rating the bonus paid if necessary)
  • Add the ordinary pay and (pro rata) bonus pay together
  • Multiply this amount by 7
  • Divide this amount by number of days in relevant pay period
  • Divide that amount by the number of working hours in a week for that person


** year is treated as having 365.25 days and month treated as having 30.44 days


  1. Create Salary Quartiles

Basis of this is to be able to look at the proportion of male and female full-pay relevant employees in the lower, lower middle, upper middle and upper quartile pay bands.


The objective is to identify the numbers of women and men in each quarter by the overall pay distribution.


This will help employers consider where women are concentrated in terms of their remuneration and if there are any blockages to their progression.




Six Areas that need to be reported on

  1. Difference in mean hourly rate of pay

“Mean” = means the sum of all the values in a list divided by the number of values

(Average calculation)

Reflecting the full earnings distribution, the mean can be useful because women are often over-represented at the low earning extreme and men overrepresented at the high earning extreme.

  • Have your full-pay relevant employees – only include these in this calculation
  • Use the hourly rate of pay you have defined for each person
  • Work out male average (mean) rate of pay and female average (mean) rate of pay

What to publish

  • The difference between mean hourly rate of pay for males and that of females must be expressed as a % of the mean hourly rate of pay of male employees during the relevant pay period:

(A minus B)     x 100


  • A is the mean hourly rate of pay of all male full-pay relevant employees
  • B is the mean hourly rate of pay of all female full-pay relevant employees


  1. Difference in median hourly rate of pay

“Median” = means the middle value in a list where the values are listed in numerical order, from lowest to highest

(Point at which half earn more and half earn less)

By identifying the wage of the middle earner, the median is the best representation of the ‘typical’ difference as it is unaffected by a small number of very high earners.

  • Have your full-pay relevant employees – only include these in this calculation
  • Use the hourly rate of pay you have defined for each person
  • Work out median rate of pay for males and median rate of pay for females


What to publish

  • The difference between the median hourly rate of pay of male employees and that of female employees must be expressed as a % of the median pay of male employees during the relevant pay period:

(A minus B)   x 100    


  • A is the median hourly rate of pay of all male full-pay relevant employees
  • B is the median hourly rate of pay of all female full-pay relevant employees


  1. Difference in mean bonus pay
  • The relevant period for this calculation is the period of 12 months ending with the snapshot date (so for the very first calculation this will be the 12 month period leading up to 5th April 2017)
  • This calculation is applicable to relevant employees – so anyone employed on the snapshot date – 5th April each year (this calculation is not limited to full-pay relevant employees)
  • work out average (mean) bonus pay for males and average (mean) bonus pay for females

What to publish

The difference between the mean bonus pay paid to males and that paid to females must be expressed as a % of the mean bonus pay paid to males:

(A minus B)   x 100    


  • A is the mean bonus pay paid during the relevant period to male relevant employees who were paid bonus pay during that period
  • B is the mean bonus pay paid during the relevant period to female relevant employees who were paid bonus pay during that period


  1. Difference in median bonus pay
  • The relevant period for this calculation is the period of 12 months ending with the snapshot date (so for the very first calculation this will be the 12 month period leading up to 5th April 2017)
  • This calculation is applicable to relevant employees – so anyone employed on the snapshot date – 5th April each year (this calculation is not limited to full-pay relevant employees)
  • Work out median bonus pay for males and median bonus pay for females



What to publish

The difference between the median bonus pay paid to males and that paid to females must be expressed as a % of the median bonus pay paid to males:

(A minus B)   x 100    


  • A is the median bonus pay paid during the relevant period to male relevant employees who were paid bonus pay during that period
  • B is the median bonus pay paid during the relevant period to female relevant employees who were paid bonus pay during that period


  1. Numbers of men and women who received bonuses

% of men who received a bonus and % of women who received a bonus

  • Relevant employees (this calculation is not limited to full-pay relevant employees)
  • Relevant period is the period of 12 months ending with the snapshot date (5th April)
  • Again only need to capture the data of those employees who are employed on the relevant date (5th April)


  • Proportion of males who were paid a bonus as a % of the males overall (male relevant employees)
  • Proportion of females who were paid a bonus as a % of females overall (female relevant employees)


  1. Salary Quartiles
  • Only full-pay relevant employees included in this calculation
  • Use the hourly rate of pay you have defined
  • Rank hourly rates of pay low to high
  • Find median point in the ranking and this will help you create lower, lower middle, upper middle and upper quartiles
  • Where employees receiving the same hourly rate of pay fall within more than one quartile pay band you must as much as you can ensure that equal proportions of males and females on that specific pay rate are in each of those pay bands (e.g. don’t just put the woman all into the higher band)
  • Then express proportion of males and proportion of females in each quartile band as a % of the total numbers in each quartile band


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