Introduction of Gender Pay Gap Reporting in 2022

10 March 2022 3 min read

On International Women’s Day, the Irish Government announced the commencement of Ireland’s mandatory gender pay gap reporting obligations.

In June 2022, employers in scope will choose a ‘snapshot’ date of their employees and will report on the hourly gender pay gap for those employees on the same date in December 2022.

The long awaited regulations setting out the detail of the reporting obligations will be published in coming weeks.

In view of the relatively short lead time for reporting, employers are advised to commence preparatory steps for compliance with the obligations, including:

identifying relevant business stakeholders;
reviewing current headcount and payroll data;
identifying reporting resources and technology;
considering communications strategy; and
taking early legal advice to address employment and data protection law compliance.

An overview of the gender reporting obligations is set out the table below.

Question	Answer
What is the gender pay gap?	The gender pay gap is the difference between what women in aggregate are paid, compared to men. It differs from the concept of equal pay for equal work, which has been enshrined in Irish law for some time.
Are all employers impacted?	Initially applies to employers with 250 + employees. From the 2nd anniversary of the regulations, it will apply to employers with 150 + employees. From the 3rd anniversary of the regulations, it will apply to employers with 50 + employees.
What information must be published?	the differences between the mean and the median hourly remuneration of male employees and female employees as a percentage; the differences between the mean and the median bonuses of male employees and female employees as a percentage; the differences between the mean and the median hourly remuneration of male part-time employees and female part-time employees as a percentage; the percentage of all male employees and all female employees who were paid bonus remuneration; and the percentage of all male employees and all female employees who received benefits in kind. Employers will be required to explain any differences and any measures that they have taken, or intended to take, to eliminate any difference.
How will the obligations be enforced?	Employees who believe their employer has not complied with the obligations may make a complaint to the Workplace Relations Commission (the “WRC”). The WRC will decide if there is a prima facie case that would warrant an investigation. If the complaint is upheld, the WRC can order the employer to take a specified course of action to comply with the regulations. There is no mechanism for the WRC to impose a fine on the employer or to make a compensatory award to the employee. The Irish Human Rights and Equality Commission (the “IHREC”) are also given powers. If the IHREC has reasonable grounds to believe that an employer has failed to comply with the regulations, it can make an application to the Circuit Court or the High Court for an order to require an employer to comply. If granted, the employer will be in contempt of court if it fails to comply. The IHREC may also carry out, or invite a particular undertaking, group of undertakings or undertakings in a particular industry or sector to carry out an equality review or prepare and implement an equality action plan.
When will the obligations start to apply?	The precise details of the reporting obligations are to be set out by regulations which will be published in coming weeks. Employers will choose a ‘snapshot’ date of their employees in June 2022 and will report on the hourly gender pay gap for those employees on the same date in December 2022.