In an effort to hold employers accountable and ensure transparency in pay practices, the Equality and Human Rights Commission (EHRC) has named six organisations that failed to report their 2023-24 gender pay gap data by the required deadlines. The EHRC’s move highlights the important of gender pay gap reporting as a tool for identifying and addressing potential pay disparities and discrimination in the workplace.

What is your legal obligation?

Currently, if you have less than 250 employees you are not legally required to report your gender pay gap data.

Public sector employers in England must publish their gender pay gap data by 30 March each year. Meanwhile, private, and voluntary sector employers across Britain and some public sector bodies in England are required to publish their data by 4 April, failing which, may lead to a warning notice from the EHRC and formal enforcement action. Formal enforcement action may include financial penalties and public ‘naming and shaming’.

EHRC’s enforcement actions in 2024

The EHRC’s firm stance on enforcement appears to be yielding positive results. The number of organisations failing to report their gender pay gap data has steadily declined over the past 3 years

Failing to report gender pay gap data prevents organisations from critically reflecting on their existing pay structures. Without this reflection, organisations may overlook potential pay disparities and discrimination issues.

Labour’s pledge

Currently, large employers (those employing 250+ employees) are required to report on their gender pay gap information, which should be published on both theirs and the government’s website. Ahead of the general election, Labour pledged to bring in mandatory ethnicity and disability pay gap reporting for large companies, on top of the current gender pay gap reporting requirement.  

According to the Office for National Statistics, in 2019, the median hourly pay for those in the white ethnic group was £12.40 per hour, compared to those in ethnic minority at £12.11 per hour – a pay gap of 2.3%.

If Labour’s plans are going to impact your organisation, or if you’re considering voluntary reporting to enhance your Inclusion, Diversity and Social Equality initiatives, Blue Circle HR and CG’s employment team are on hand to guide you through the reporting process and help you prepare your data.

Image source: Andrii Yalanskyi via Adobe Stock