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24 Feb 2021
by Dawn Lewis

Gender Pay Gap reporting confirmed for 2020/21, but enforcement delayed until October

Calls for clarity around gender pay gap reporting have been answered, with the Equality and Human Rights Commission (EHRC) confirming that employers with 250 or more staff will need to report their Gender Pay Gap this year, although enforcement action will not begin until 5 October 2021.

 

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Gender pay gap reporting was originally suspended in March last year due to the pandemic. A lack of clarity on this year’s requirements had led to concerns around the long-term implications of a continued suspension. Just this week, REBA’s director Debi O’Donovan highlighted how the lack of workplace gender data is harming performance metrics.

Commenting on the announcement, Matthew Fell, CBI chief UK policy director said: “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.”

He explained that reinstating enforcement from October 2021 will ensure that all firms within scope publish their data, while allowing those that have been closed for the past few months more time to report.

Baroness Kishwer Falkner, chair of the EHRC, added that starting its legal process in October “strikes the right balance” between supporting businesses and enforcing the regulations. She also agreed that 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.”

Although the announcement has been largely welcomed, the TUC general secretary, Frances O’Grady, believes that delaying enforcement action for six months isn’t necessary and that employers should look to report on time.

“Now is not the time to turn our backs on equality. Women have lost out on pay and had to cut their hours in the pandemic. It’s vital that employers analyse their pay gaps and take immediate action to close them. Unnecessary delay risks turning the clock back,” she said. 

“This decision sends a worrying message about the importance given to gender equality. It’s not just a nice addition in good times that can be shelved when the going gets tough.” 

The changes for the 2020/21 reporting year gives those required to meet the regulations an additional six months to report their data before legal action begins.

The regulations state that public sector bodies covered by the regulations must report their data by 30 March. Private sector employers are required to report by 4 April. Full details on how to report your gender pay gaps.