Q&As

Are non-executive directors covered by the gender pay gap regulations relating to the private and voluntary sector?

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Published on LexisPSL on 03/10/2017

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • Are non-executive directors covered by the gender pay gap regulations relating to the private and voluntary sector?
  • Non-executive directors
  • Gender pay gap reporting obligations
  • The Equality Act 2010 definition of employment

Non-executive directors

A director is an ‘office holder’. It will be a question of fact whether a director is also:

  1. an employee, eg within the meaning of section 230(1) of the Employment Rights Act 1996 (ERA 1996)

  2. a worker, eg within the meaning of ERA 1996, s 230(3)(b)

There is no legal definition of ‘non-executive director’, but it is usually taken to mean a director who is not involved in the day-to-day operations of the company, but is responsible for monitoring executive activity and contributing to the development of strategy.

A non-executive director will not usually fall within the definition of employee for most employment purposes. However, a non-executive director may fall within the definition of ‘worker’, eg under ERA 1996, s 230(3)(b).

For further information, see:

  1. Practice Notes: Employee status and Worker status—Other persons with worker status

  2. the drafting notes to Precedent: Letter—non-executive director appointment

Gender pay gap reporting obligations

The gender pay gap reporting obligations which apply to the private and voluntary sector are set out in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017, SI 2017/172 (the private and voluntary sector regulations).

The Advisory, Conciliation and Arbitration Service (Acas) and the Government Equalities Office (GEO) have together produced the following non-statutory guidance: managing gender pay gap reporting.

The regulations apply where the employer has 250 or more 'employees' on the snapshot date (ie on 5 April 2017, and each

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