Further to our recent article, the government’s Equalities Hub has now indicated that gender pay gap reporting enforcement may be suspended again this year.
Gender Pay Gap Reporting Enforcement
Gender pay gap reporting enforcement in terms of the legal requirement for organisations with 250 or more employees to report their gender pay gap data, was suspended last year on the 24th March 2020. It was suspended on account of the Covid-19 outbreak and the first national lockdown. At the time, Liz Truss, the Minister for Women and Equalities, stated that businesses faced "unprecedented uncertainty and pressure".
It had been understood that employers would be required to report their gender pay gap data this year. Should that be confirmed, then the deadline for public sector employers to report their data is the 30th March 2021, with a snapshot date of the 31st March 2020. For private sector employers and voluntary organisations, the deadline is the 4th April 2021, with a snapshot date of the 5th April 2020.
Nevertheless, on the 9th February 2021, the Guardian reported that the issue of gender pay gap reporting enforcement was "under review". A representative from the government's Equalities Hub confirmed to the Guardian that no decision has yet been made, and added: "Last year’s decision to suspend enforcement action was taken to alleviate pressure on businesses during the Covid-19 pandemic. Separately the ONS continue to collect data on the gender pay gap, which fell to a record low last year, and we encourage all employers to take action to ensure that everyone has equal opportunities in the workplace."
Moreover, Gillian Keegan, the Minister for Apprenticeships and Skills, later told the BBC that gender pay gap reporting enforcement was now unlikely, and that "enforcing [it] at this time is something that doesn’t seem right. If we need to suspend enforcement of it we will probably do so."
Critics Say Enforcement Essential
A number of organisations have contended that gender pay gap reporting enforcement must go ahead, in response to the reports that it may be suspended. For instance, the chief executive of the Chartered Management Institute, Ann Francke, argues that the need for enforcement to resume this year is "very urgent" and that "if the government doesn’t act, things quickly disappear back down the rabbit hole. The excuse is likely to be that businesses are badly hit right now but actually, it is employees, especially women and minorities, who have been badly hit."
Moreover, the Women and Equalities Committee in its recent report, 'Unequal impact? Coronavirus and the gendered economic impact,' contended that enforcement needed to be "urgently reinstated". In their report, they argued that: "We were disappointed that the Government chose to suspend, rather than delay, gender pay gap reporting and enforcement [in 2020]. Given the high number of women who have been furloughed or worked reduced hours due to caring responsibilities, and the evidence of continuing gender inequality in other areas, this should have been a time for more - not less - transparency. We recommend that gender pay gap reporting be urgently reinstated, with reporting for the financial years 2019/20 and 2020/21 required in April 2021".
Furthermore, the TUC's women’s equality lead, Sian Elliott, argues that suspending gender pay gap reporting enforcement would convey a message that equality in relation to pay was "nice to have but not essential...If government allows employers off the hook again, it is yet more evidence that they are prepared to let women pay the price for this crisis."
Reporting Thus Far
As of the 21st February 2021, with just over a month to go in relation to the deadlines for reporting of gender pay gap data, should enforcement not be suspended, just 599 of the roughly 11,000 employers that it is anticipated would be required to report, have done so, so far.
