Gender pay gap reporting – are you on track for next year’s report?

Print publication


Part of the Walker Morris Risk Series LogoThe deadline for private and voluntary sector employers with more than 250 staff to publish their first gender pay gap (GPG) results was 4 April 2018.  There was a huge surge of reports in the final days and more companies uploaded their GPG reports in the 24 hours before the deadline than had reported in the first 326 days.

The Equality and Human Rights Commission (EHRC) has been writing to employers who remain in default stating that it will take enforcement action against them if they don’t comply. The EHRC have also confirmed that they intend to ‘name and shame’ employers who are in default. The EHRC’s drive in this area makes it clear that there will be serious consequences for businesses who choose not to comply with their GPG duties.

Preliminary results show that 78% of large private companies pay men more than women and only 8% of employers reported no pay gap at all. The finance sector had the largest reported GPG of 35.6%, whilst the accommodation and food services sectors reported the smallest pay gap, with an average median gap of 1%.

Employers should remember that GPG reporting is an ongoing duty and that the ‘snapshot date’ of 5 April 2018 on which next year’s figures need to be based has already passed. Businesses need to take steps to begin updating their reports within a year of this date.

Inquiry into GPG and executive pay

In related news, a new parliamentary inquiry into executive pay and the gender pay gap in the private sector has been launched. Its remit is to consider the context of “concerns about the overall level of executive pay and bonuses” and it has requested written evidence on the following questions:

Gender Pay:

  • Whether the annual information related to gender pay required under the Equality Act 2010 is sufficient? Should any further information be required?
  • What is the extent of GPG compliance? Is the information accurate?
  • How effective are the sanctions for non-compliance with reporting requirements?
  • What requirements, if any, should there be on companies to address gender pay gaps?

Executive Pay:

  • What progress has been made on implementing the recommendations on executive pay by the previous Committee in its 2017 report on Corporate Governance?
  • What improvements have been made to reporting on executive pay in the last 12 months?
  • What steps have been taken by Remuneration Committees and institutional investors to combat excessive executive pay in the last 12 months?
  • What further measures should be considered?

If you would like further advice on this topic please contact David Smedley or Andrew Rayment.