Employment regulations have continued to evolve over the past 10 years with increased focus from regulators to ensure that workers are paid correctly and fairly.
With increased competition for labour and board level focus on the Environmental, Social and Governance (ESG) agenda, employers are focusing more on this area than ever before.
Especially as there are significant reputational risks where employers fail to meet these statutory requirements, together with financial penalties.
Pay governance encompasses Holiday Pay, National Minimum Wage, Statutory Payments, Gender Pay and wider pay compliance risks.
These areas are technically complex, require significant data analysis and often require discussions with regulatory bodies.
Our multidisciplinary team supports employers throughout their business cycle either by setting up compliant processes and controls, undertaking gap analysis or supporting during a regulatory review.
Providing our practical application of technical matters, data analytic capabilities and insights into market practice and future regulatory developments enables businesses to reduce management time, decrease financial penalties and manage reputational impact.
How we can help
Pay governance has many aspects, however, some key items for employers are:
- National Minimum Wage (NMW)
- Holiday Pay
- Gender Pay
- Governance in the supply chain
National Minimum Wage (NMW)
This can impact a wide variety of workers given the technical nature of the regulations. We can support clients to put processes and controls in place to manage compliance, as well as support during an HMRC led review.
Holiday Pay
Following recent case law, employees with variable hours or pay will need to be reviewed. We can support in reviewing current calculations, calculate back payments and implement required changes.
Gender Pay
Many organisations are looking to understand their gender pay gap, especially in light of reporting requirements for large employers. We can support by looking at the root causes of any gap identified and implement a programme to close this. Often employers extend this beyond mandatory reporting figures and expand it to wider diversity metrics.
Governance in the supply chain
With increased focus on where end users get goods and services, many organisations want reassurance that their own high standards in pay governance extend to their supply chain. We can support by completing a supply chain due diligence and incorporating this as part of regular reviews.
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