In recent years, gender pay gap reporting compliance among UK employers has significantly improved.
- The number of companies not reporting fell from 28 in 2022 to just eight in 2023.
- This improvement occurred without financial penalties being imposed by the authorities.
- Public naming and shaming and strategic reminders have been effective compliance measures.
- Increased global focus on pay equity likely influences greater adherence to reporting rules.
In a significant development for workplace equality, UK employers have ramped up their compliance with gender pay gap reporting obligations. According to leading employment law firm GQ|Littler, the number of employers failing to submit their reports plummeted by 71% to only eight in 2023, down from 28 in 2022.
Nikola James of GQ|Littler highlighted that the Equality and Human Rights Commission (EHRC) achieved this high compliance without resorting to fines. The commission, tasked with overseeing gender pay gap reporting, mandates that all employers with 250 or more employees publish data on the pay gap between male and female employees.
In 2023, approximately 7,900 private sector companies were subject to this reporting requirement, as part of efforts to enhance transparency and equality in pay practices. Notably, the EHRC has opted for a ‘softly, softly’ enforcement strategy, which appears to be yielding positive results.
James explained that the EHRC’s methods included public naming of non-compliant companies, reminder communications, and social media activities to drive adherence. Importantly, the past two years have seen no repeat offenders, indicating the effectiveness of these measures.
While financial penalties have not been issued, the EHRC has engaged some employers with ‘Section 23’ agreements, requiring them to comply under supervision. This approach, rather than immediate investigations or fines, has contributed to the progress in pay transparency.
Additionally, there seems to be an overarching trend toward pay equity, driven by global attention. This broader context might have incentivised companies to comply, aligning with international standards of transparency and fairness.
The improvement in gender pay gap reporting reflects both effective enforcement and a growing global awareness of pay equity.
