In the week we celebrate diversity and inclusion with International Women’s Day, the institute of Directors welcomes the announcement that mandatory gender pay gap reporting will resume from October this year.
Companies employing 250 or more people are now required by law to publish their gender pay gap figures – the difference between the average (mean or median) earnings of men and women across a workforce. But enforcement was suspended in March 2019 due to Covid-19 and there was mounting pressure for an announcement as to when it would be reinstated.
We, amongst others, are therefore pleased that the Government’s Equality and Human Rights Commission (EHRC) has now made clear that enforcement will start again as of 5th October 2021 and that employers are being encouraged to submit data earlier where possible.
Carolyn Stephenson, South West Ambassador for Policy and Corporate Governance, said: “Businesses are now set up for pay gap reporting so there really is no reason for pausing a process that ensures everyone is paid fairly any longer than is necessary. Diversity and inclusion
is one of the leading issues facing business today and must not be side-lined because of the pandemic. Transparency about reducing and closing pay gaps is one of the key drivers to retaining women in the workplace and encouraging them to progress their careers, which in turn will build better organisations across the board.”
Gender Pay Gap Reporting