It has been confirmed by the Equality and Human Rights Commission (EHRC) that due to the coronavirus pandemic they have decided to impose a further suspension to the Gender Pay Gap Reporting Regulations, this time until October 2021.
After the gender pay gap reporting requirements were suspended for the previous financial year, they were due to be reintroduced in April 2021. However, due to the continued impact of the pandemic, the suspension has been extended once more to 5th October.
This news means that businesses will have an additional six months in which to accumulate and submit their data for the 2020/21 reporting year before being hit with any penalties.
Under normal circumstances, the deadline for public sector organisations to submit their gender pay gap data would normally be 30th March, with private companies being required to submit their reports on 4th April.
Baroness Kishwer Falkner, EHRC Chair, commented on the suspension:
“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.”
However, despite there being a suspension in place for the past year, a high number of businesses decided to publish their gender pay gap reports anyway, and Baroness Kishwer Falkner is recommending that businesses attempt to do the same this year:
“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.”
Adding:
“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.”
Whilst the decision has received a lot of support from various organisations, some experts and groups have criticised the decision and commented that it is unnecessary. Frances O’Grady, General Secretary of the TUC, commented:
“There is nothing to stop bosses reporting in March as usual – and hopefully good employers will still do this…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.
“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.”
Comment
This move will be welcomed by employers who are all trying to deal with the issues generated by Covid-19 and the lockdown restrictions.
However, in the longer term, we anticipate that equal pay and other equality issues will return to the fore and so employers should not ignore these issues completely.
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Laura Kearsley is a Partner in our expert Employment Law team.
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