Naming And Shaming For Employers Who Fail To Comply With Their Gender Pay Gap Reporting Obligations

The Investigation and Next Steps

Under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (the Regulations), employers with 250 or more employees were obliged to report their gender pay gap information on or before 4 April 2018.

On 9 April 2018 the Equality and Human Rights Commission (EHRC) wrote to the 1,500 or so employers which come within the remit of the Regulations, but which have not reported their data, giving these employers 28 days to comply with the Regulations. Since these letters have been sent, a further 400 companies have reported on their gender pay gap.

Employers who have still not reported on their gender pay gap following the expiry of the 28 day deadline will be investigated under section 20 of the Equality Act 2006, and if they are found to have acted unlawfully, will be issued with an 'unlawful act notice.' If these employers fail to comply with this notice, a court order will be issued against them, breach of which could result in an unlimited fine.

The EHRC has confirmed that it will 'name and shame' all employees who reach the investigation stage. A report detailing the results of this investigation will be available to view by members of the public on the EHRC website.

Best Practice

Despite comments from Maria Miller MP about the EHRC's "toothless" approach to gender pay gap reporting, it now seems likely that the EHRC will be using the full remit of its powers under the Equality Act 2010. If your organisation has been issued with a letter from the EHRC, it is recommended that you deal with this as soon as possible.

The 'naming and shaming' of employers in the EHRC's report could result in significant reputational damage for your business which could be avoided by ensuring the company's compliance with the Regulations. You may also be issued with an unlimited fine.

If you need further advice on preparing a gender pay gap report compliant with the Regulations, or you have received a letter and do not know how best to proceed, please contact Kiki Dawes in our Employment law team on 0117 314 5309.