The Minister for Justice and Equality, Mr Charlie Flanagan, and the Minister of State for Equality, Immigration and Integration, Mr David Stanton, announced the publication of the General Scheme of the Gender Pay Gap Information Bill which was approved by the Cabinet today.
This significant Bill will provide that employers with a certain number of employees (which will be set at 50 or more after an initial period of operation for bigger firms) must publish information on the gender pay gap in their firm.
Minister Flanagan said:
This Government is committed to gender equality. Both the Programme for Government and our Second National Strategy for Women and Girls commits to wage transparency measures to tackle the gender pay gap. In this significant year, the centenary of women’s voting rights, I am pleased, along with Minister Stanton, to bring forward these legislative proposals.
The gender pay gap has rightly attracted increased attention in recent times both in Ireland and internationally. While Ireland compares relatively well with the rest of the EU as regards the size of the gender pay gap – 13.9% compared with an EU 28 figure of 16.7% in 2014 – put simply, we want gender equality in Ireland and we are committed to tackling the gender pay gap. These pay transparency measures are part of a wider package of measures to promote gender equality.
Minister Flanagan added:
In formulating these proposals, we have consulted widely and taken on board much that emerged from the public consultation that Minister Humphreys, Minister Stanton and I hosted last year. I look forward to further consultations and a good debate in the Houses of the Oireachtas. I want to acknowledge the support of the Opposition for wage transparency measures and the work of Senator Ivana Bacik in particular.
Notable elements of the General Scheme of the Bill are:
- the Minister shall make regulations requiring publication of information on the gender pay gap in firms;
- the regulations will apply to employers with 250+ employees initially, then to those with 150+ and finally those with 50+;
- the regulations will apply to the public as well as the private sector subject to the employment thresholds;
- in addition to differences in hourly pay, information on differences in bonus pay, part-time pay and pay of men and women on temporary contracts will be among the data which must be published;
- the regulations may also require publication of differences in pay by reference to job classifications;
- the enforcement mechanisms include a power for the Irish Human Rights and Equality Commission to apply to the Circuit Court for an order requiring an employer to comply with the legislation. Also, an employee of the employer concerned may apply to the Workplace Relations Commission for an order requiring compliance. There is a provision too for designated officers who would investigate a sample of employers to ensure that the information published is accurate.
Minister Stanton continued:
This is an important measure to help reduce the gender pay gap by publishing information about it at the firm level, thus furnishing a deeper insight into the causes of the gap and facilitating employers in addressing it.
It is not by itself a sufficient response to the problem of the gender pay gap and needs to be supplemented by measures in increase the number of women in better-paid roles and occupations, improved childcare provision, dealing with gender stereotypes, more women in decision making etc. Actions in these areas are being pursued in the framework of the National Strategy for Women and Girls 2017-2020.
The General Scheme will now be published and submitted to the Joint Oireachtas Committee on Justice and Equality for pre-legislative scrutiny.