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Gender pay gap latest: Hundreds of companies flock to report pay ahead of midnight deadline

Government has not revealed what measures it will take against firms that do not report the data

Caitlin Morrison
Wednesday 04 April 2018 10:24 BST
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The gender pay gap explained

Companies are rushing to publish their gender pay gaps today as the deadline to report looms.

Public and private sector firms with 250 employees or more are required to reveal by midnight on Wednesday how much more or less male staff are paid compared with female staff.

By the government’s estimates, this applies to around 9,000 organisations. By 4.30pm on deadline day, more than 9,700 firms had reported, with more than 840 of those publishing since 8am on Wednesday.

Theresa May has vowed to tackle the "burning injustice" of the gender pay gap, comparing it to the women's suffrage campaign a century ago.

So far 78 per cent of employers who have submitted their data have a gender pay gap, compared to 8 per cent who have none and 14 per cent who have one in favour of women.

Airline Ryanair is one of the worst offenders, with a median gender pay gap of 71.8 per cent.

But according to the union Aslef, the job with the smallest gap in wages between men and women is train driving, which has a pay gap of 0.7 per cent.

However, it is unclear so far what actions the government is prepared to take if companies do not meet the deadline.

Baroness Williams, the equalities minister, said the Equality and Human Rights Commission (EHRC) has “powers to make (firms) produce an action plan about complying”.

“If they don’t comply there is recourse to the courts and also fines. There will be pressure on them if they don’t comply,” she added.

Lady Williams said the EHRC is “ready to take action” in response to questions over whether the government does have power to fine companies.

When asked whether the government would be prepared to stop signing contracts with companies that fail to comply, Lady Williams said: “If this legislation works in the way that we hope it will work, and makes organisations, public and private, look at their gender pay gap and actually take action to reduce it, then there will be no need to take procurement decisions.”

What happens to companies that do not submit gender pay details by the deadline?

At 11.59pm on Wednesday, the deadline will pass for an estimated 9,000 employers to submit details of their gender pay gap to the Government - but what happens to those that break the law and miss it?

Companies that miss the deadline could face legal action including court orders and fines, but only after being given more than a month's grace period.

A spokeswoman for the Home Office said companies will still be able to publish their data using the Government website after the deadline, but added that their entries will be time-stamped.

EHRC, whose job it is to impose sanctions on non-complying firms, said it will write to employers that have not submitted their figures on 9 April, giving them 28 days to do so "before an investigation takes place and an unlawful act notice is issued".

The Press Association understands that firms who publish their data late, but before 9 April, will not face any enforcement action but will be kept on record.

Those who report their figures within 28 calendar days of the EHRC's letter are expected to report on time next year to ensure no sanctions are applied.

Those who do not report their figures within the expected time frame will face investigation - if taken to court, an unlimited fine can be imposed.

Companies with 250 employees or more are required to publish their gender pay gap details under The Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

Chief executive of the EHRC Rebecca Hilsenrath said: "This is not optional; it is the law and we will be fully enforcing against all companies that do not report.

"This legislation is in place to bring about better gender equality in the workplace and any employer not complying needs to ask themselves tough questions, rethink their priorities, be prepared for serious reputational damage, and be ready to face a very unhappy workforce."

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