Government rejects BEIS recommendation to extend gender pay gap reporting obligations
What has been the government’s response to the BEIS select committee’s report?
The Government has responded to the BEIS select committee report on gender pay gap reporting. It has confirmed that it will not be making any immediate changes.
What is included in the response?
It confirmed that:
- It will not extend gender pay gap obligations to companies employing 50 or more employees. Instead it will encourage smaller companies to look at their gender pay gaps. It may consider extending gender pay gap reporting obligations to smaller companies in future
- It will not require employers to produce an action plan. Whilst it is keen for all employers to produce an action plan, it considers that making action plans compulsory might result in a prescriptive format with limited value to employers and employees
- Partner remuneration will remain excluded from the reporting figures. However, it welcomes the fact that many organisations have voluntarily published additional information about partner remuneration and will evaluate altering the guidance regarding partners in future reporting years, for example to introduce a voluntary reporting methodology
- It will not at this stage require employers to report on salary deciles (rather than quartiles), nor require employers to provide separate part-time and full-time pay gap figures. Before such amendments could be considered, it would need to consult with employers and membership bodies
- It will not be amending the Acas/GEO guidance to deal with ambiguities (such as on how bonus figures should be calculated) but will continue to gather stakeholder feedback and will update the guidance if appropriate
- It will not give the EHRC power to levy fines. It is satisfied with the current enforcement strategy and noted that 100% of employers identified as in scope have published their information.
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