The enforcement by the Equality and Human Rights Commission (EHRC) has led to a 71% drop in UK companies failing to report gender pay gaps in 2023.
- Only eight companies did not comply with the reporting obligation, a significant decrease from 28 in 2022 and 47 in 2019.
- Approximately 7,900 UK private sector businesses were required to report their gender pay gap data.
- The EHRC achieved compliance without issuing fines, using strategies like public naming and reminder letters.
- No companies have repeatedly failed to report their gender pay gap data in the last two years.
The recent data indicates a substantial improvement in compliance among UK employers regarding the reporting of gender pay gaps. In 2023, only eight companies did not fulfil this obligation, compared to 28 in the previous year and 47 in 2019. This marks a 71% reduction, reflecting the effectiveness of the enforcement strategies employed by the Equality and Human Rights Commission (EHRC).
The requirement to publish gender pay gap data applies to employers with 250 or more staff members. In 2023, approximately 7,900 private sector companies were obliged to adhere to these rules, aiming to enhance pay transparency and promote gender equality across workplaces.
According to Nicola James, a partner at GQ|Littler, the EHRC’s strategic approach has yielded ‘impressive results’ without resorting to fines. The commission’s methodology includes naming and shaming non-compliant companies, alongside sending reminder notices and leveraging social media to encourage adherence to reporting duties. Publicly listing non-reporters on the EHRC website further incentivises compliance.
Importantly, there have been no cases of companies failing to report in consecutive years, suggesting that the EHRC’s public accountability measures may deter repeat offences. By opting for a ‘softly, softly’ enforcement model, which includes entering ‘Section 23’ agreements with certain employers instead of pursuing formal investigations, the EHRC focuses on corrective action and monitoring compliance over punitive measures.
This approach must be viewed within the broader context of increasingly global attention on pay transparency and equity. The steady progress in compliance emphasises the impact of these softer enforcement strategies, combined with rising international expectations for corporate transparency in gender-related pay differences.
The EHRC’s strategic measures have significantly improved compliance with gender pay gap reporting in the UK.
