Number of Companies Failing to Report Gender Pay Gap Dropped by 71% in Past Year

The number of UK employers failing to report their gender pay gap fell significantly by 71% to just eight companies in 2023, compared to 28 in 2022 and 47 in 2019, according to leading specialist employment law firm GQ|Littler.

Nicola James, partner at GQ|Littler, attributes this high compliance level to the Equality and Human Rights Commission (EHRC), which oversees gender pay gap reporting rules. Remarkably, the EHRC achieved these results without issuing any fines.

Reporting Requirements and Compliance

All UK employers with 250 or more employees must publish data on their gender pay gap, measuring the difference between average (median) hourly earnings of men and women. In 2023, an estimated 7,900 private sector businesses were required to report this data as part of the EHRC’s efforts to promote pay transparency and gender equality.

Effective Enforcement Without Fines

In the past two years, there have been no “repeat offenders” failing to report their gender pay gap data consecutively. This suggests that the EHRC’s policy of publicly naming non-compliant companies is effective in ensuring compliance.

Nicola James explains: "The EHRC has taken a softly, softly approach to enforcement – rather than issuing fines at the first opportunity, that approach seems to have delivered impressive results. This is unlikely to be the only factor driving compliance and should be viewed in the context of the increasing global focus on pay transparency and pay equity.”

EHRC’s Compliance Strategy

The EHRC’s strategy includes alternative measures such as sending reminder letters, social media activity, and enforcement warnings. The EHRC also publicly lists non-reporters on its website to encourage compliance. While no fines have been issued, the EHRC has entered “Section 23” agreements with some employers, requiring them to comply with legislation under EHRC monitoring.

Historical Compliance Data

The EHRC paused compliance action during the COVID-19 pandemic and did not publish a list of non-compliant organisations in 2020 or 2021.

GQ|Littler Background

GQ|Littler is a leading specialist employment law firm and represents the London and Dublin presence for Littler, the largest global employment and labour law practice dedicated to representing management. With over 1,800 lawyers in more than 100 offices worldwide, Littler provides local workplace solutions globally.

GQ|Littler offers risk-based contentious and non-contentious advice across various sectors, including financial services, technology, healthcare, professional services, and luxury goods. Recognised as a leader in its field by Chambers & Partners and Legal 500, GQ|Littler is described as “undoubtedly the best boutique firm specialising in employment law for employers in London” in Legal 500 2023.

For more insights into the evolving European workplace and employer actions, see Littler’s 2023 European Employer Survey Report, which surveyed over 780 human resources executives, in-house attorneys, and business leaders.