Further to our recent article, the Equality and Human Rights Commission (EHRC) has now announced that gender pay gap reporting enforcement has been delayed until the 5th October 2021.
Gender Pay Gap Reporting
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, on account of the Covid-19 outbreak and the first national lockdown. Until recently, all the indications were that the reporting requirement would resume again this year. If so, then the deadline for public sector employers to report their data would have been the 30th March 2021, with a snapshot date of the 31st March 2020. For private sector employers and voluntary organisations, the deadline would have been the 4th April 2021, with a snapshot date of the 5th April 2020.
However, doubts as to whether or not gender pay gap reporting enforcement would be suspended again first surfaced on the 9th February 2021, when the Guardian reported that the issue was "under review", with a representative from the government’s Equalities Hub stating that no decision has yet been made. 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."
Six Month Delay
On the 23rd February 2021, the Equality and Human Rights Commission (EHRC) formally announced that the reporting deadline for the purposes of gender pay gap reporting enforcement would be moved to the 5th October 2021. The change was also later confirmed on the Government website.
The chair of the Equality and Human Rights Commission, Baroness Kishwer Falkner, stated within the announcement that: "We know businesses are still facing challenging times. Starting our legal process in October strikes the right balance between supporting businesses and enforcing these important regulations. Taking action to reduce the gender pay gap must continue. Reporting provides an opportunity for employers to demonstrate their commitment to gender equality, which will be more important than ever as the effects of the pandemic continue. Employers should still report their gender pay gap data for 2020/21 on time if they can and we encourage them to demonstrate the steps they are taking to reduce long-term pay gaps through detailed action plans."
Gender Pay Gap Reporting Enforcement Delay: Reaction
The Chief UK Policy Director of the Confederation of British Industry (CBI), Matthew Fell, responded to the announcement on gender pay gap reporting by stating: "The COVID-crisis cannot be allowed to undermine companies’ commitments to tackle all forms of inequality, so resuming mandatory gender pay gap reporting is the right thing to do. Businesses will welcome certainty about what they are expected to disclose and by when. Reinstating enforcement from October 2021 will ensure that all firms within scope publish their data, while giving those who have been closed for most of the last year more time to do so."
The chief executive of the Fawcett Society, Felicia Willow, added: "The UK has a persistent gender pay gap that won’t be closed by inaction. Large employers must continue to scrutinise their gender pay gaps and take action in order that they can be closed. We recognise that the pandemic has affected many employers, but gender pay gap reporting is good for business. We therefore hope that there will be no further delays in enforcement after this year."
However, the TUC’s general secretary, Frances O’Grady, said that the 6 month delay on gender pay gap reporting enforcement sends "a worrying message". She stated: "Delaying gender pay gap reporting for six months isn’t necessary. There is nothing to stop bosses reporting in March as usual...Now is not the time to turn our backs on equality...Unnecessary delay risks turning the clock back. This decision sends a worrying message about the importance given to gender equality. It must not be seen as a nice addition when times are good that can be shelved when the going gets tough."
