Reward insight
Allowing for the fact that data is scarce, analysis by the Trades Union Congress (TUC) at the end of 2018 found that the average disability pay gap stands at around 15%. That’s the equivalent of being paid nearly £3k (£2,821) less a year. And the TUC reports that the pay penalty is even higher for some disabled people; those with ‘depression or bad nerves’ are paid around 26% less, and those with ‘mental illness, phobia or panics’ are paid on average nearly 30% less than non-disabled people. Align this pay disparity with the TUC’s assertion that disabled people have an employment rate that is 30% lower than the non-disabled and it is clear that there is a long way to go before pay parity is achieved. So far, although the government has consulted on how ethnicity pay should be reported, no consultation has been forthcoming on the reporting of disability pay. Instead, back in November 2018, the government published a two-page voluntary reporting framework calling on large employers to report on the number
of disabled employees they employ.
reporting framework for disability pay reporting rather than exploring mandatory reporting options. Voluntary reporting doesn’t have a convincing track record. A voluntary scheme for gender pay gap reporting was introduced by the coalition government in 2011 with almost 300 businesses signing up, but only seven businesses actually went on to publish their data. Yet when mandatory gender pay reporting was introduced more than 10,000 employers reported their gender pay gap – close to 100% compliance. It is clear that without a legally binding requirement on companies to publish their pay gaps – and what action they are taking to address them – progress towards closing the disability and ethnicity pay gaps will be slow. Being open and transparent about pay has forced organisations to identify and address the poor workplace practices which have led to gender inequality. Let’s hope that it isn’t long before all other pay inequalities are identified and addressed too. n
Is voluntary reporting the answer?
The framework was developed by the government in partnership with large employers and expert partners (including leading charities) to support organisations to record and voluntarily report information on disability, mental health and wellbeing in the workplace. But the key word here is voluntary. Employers are under no obligation to do the right thing and report their disability pay gaps. The government has committed itself ...closing the disability and ethnicity pay gaps will be slow to reducing the disability pay gap in the same way that it is committed to reducing the gender and ethnicity pay gaps so it is unclear why it has introduced a voluntary
Employment status and modern employment practices
One day
This course explains how to assess employment status, the financial risk of getting it wrong, the right to work in the UK and a variety of modern employment practices. It covers recent developments such as the IR35 process changes (‘off-payroll working’) and possible future developments following various Government consultations.
This course covers: ● Optional remuneration arrangements ● Legislation and salary sacrifice case law ● Contractual implications ● Effective arrangements ● Payroll implications ● Salary sacrifice and noncash options
Book online at cipp.org.uk/training , email info@cipp.org.uk or call 0121 712 1000 for more information.
cipp.org.uk CIPP_UK cip .org.uk @CI P_UK
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| Professional in Payroll, Pensions and Reward |
Issue 54 | October 2019
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