Commission / bonuses: Exercising discretion
In this case, the Court of Appeal considered whether the High Court was entitled to interfere with the employer's assessment of an employee's entitlement to commission.
Published 15 April 2016
The Government Equalities Office has clarified the scope of the draft regulations on gender pay gap reporting.
Following the publication of the draft regulations on gender pay gap reporting, the Government Equalities Office (GEO) has clarified the meaning of the term "quartile pay band."
The draft regulations require employers of over 250 employees to publish the numbers of male and female employees employed in four pay bands, set according to the "quartiles for the overall pay range". There has been some confusion around what is meant by "quartiles" in this context, in particular whether the quartiles should contain equal numbers of employees, or alternatively, whether the quartiles should be determined by splitting the pay range into four equal segments.
On 10 March 2016, the GEO confirmed that regulation 7 of the draft regulations envisages that an employer will look at the overall range of hourly rates paid to employees and create four equal pay bands, with each band consisting of one quarter of the difference between the lowest and highest hourly rates. While this has clarified the government's intention, it is still not clear that this is what is, in fact, achieved by regulation 7.
Please contact Ceri Fuller if you would like to discuss gender pay gap reporting.