MHoC Bill Archive

B407 Pay Transparency Bill

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A Bill to require firms to publicly disclose pay-related statistics about their firm and its employees. *BE IT ENACTED by The Queen's most Excellent Majesty, by and with the advice and consent of the Commons in this present Parliament assembled, in accordance with the provisions of the Parliament Acts 1911, 1949 and 201, and by the authority of the same, as follows:-* **Section One: Definitions** (1) A qualifying firm (hereafter simply “firm”) is one with ten or more employees. (2) A closest match job title (hereafter simply “Job Title”) shall be a short description of a job defined and kept up to date by the Department of Business, Industry, and Labour (hereafter “the Department”). **Section Two: Requirements for firms** (1) Firms shall be required to submit the following data through an online page on the Department website, or through a postal submission to the Department, within one week of an employee being hired, their job role or pay level being altered, as well as removing any individuals who no longer work for the company within the same time period. The names of individuals shall be encrypted such that they cannot be accessed on the website, but so that the firm can amend submitted details about an individual themselves. (a) Average weekly pay over the last financial year. (b) Average hours worked per week over the last financial year. (c) Job Title (d) Detailed job role. (e) Any and all other legally permissible elements the firm uses to calculate pay, including but not limited to years of relevant experience, time worked at the firm, and performance-related pay schemes. The details of how such elements contribute to pay should be provided to the Department on an annual basis and shall be published under section 3 as well. (f) Estimated monetary value of any payments in kind over the last financial year. (2) Firms shall be required to disclose the data provided about an individual to that individual upon the request of said individual. (3) Both the firm and the Department shall be legally responsible for protecting the anonymity of employee data under existing data protection regulations and shall be subject to legal penalties and damages if any names connected with the data are unlawfully disclosed due to their fault. (4) Firms shall be required to comply with any reasonable requests for clarification about the above data by the Department. **Section Three: Publication of statistics** (1) The Department shall maintain a website at the web address “http://paytransparency.gov.uk” or similar. (2) Each firm shall be sorted a category comprising similar firms by the Department based on its activities. (3) It shall be possible for users on each site to search by firm and to narrow down categories such that a user can see the average pay for any combination of categories within a firm, a category of firms, or all firms. **Section Four: Penalties** (1) A firm which fails to submit employee data on time shall be fined up to £1,000 per individual violation. (2) A firm which intentionally or systematically (defined as a third conviction under section 4(1) with each successive violation occurring after the firm was officially made aware of the allegation of a prior violation of 4(1) by the Department or a judicial body) fails to submit employee data on time may be fined up to five percent of its annual profits or £100,000, whichever is higher. (3) A firm which submits false employee data may be fined up to twenty-five percent of its annual profits or £500,000, whichever is higher. If the firm can prove that it is likely on the balance of probabilities that the false data was submitted by accident, the penalty shall be a maximum of 2.5 percent of its annual profits or £50,000, whichever is higher. **Section Five: Enactment, extent and short title** (1) This bill shall take effect on the 1st March, 2017. (2) This bill may be cited as the Pay Transparency Act 2017. (3) This bill shall extend to England, Scotland and Wales.