UK firms failing to report gender pay gap may face “unlimited fines”

UK firms that fail to report their gender pay gap figures ahead of the government’s April deadline have been warned of “unlimited fines”. 

This is the first year that businesses in the U.K have been required to publish the difference in wages, as the government looks to stamp out gender inequality.

All businesses with more than 250 staff are required to publish the data by the 4th of April.

Despite the April deadline fast approaching, fewer than 4,000 out of 9,000 have so far published their figures.

The Equality and Human Rights Commission (EHRC) warned firms were now in the “last chance saloon” to resolve the issue.

Rebecca Hilsenrath, chief executive of the EHRC, said: “Let me be very very clear: failing to report is breaking the law,”

“We have the powers to enforce against companies who are in breach of these regulations. We take this enormously seriously. We have been very clear that we will be coming after 100% of companies that do not comply.”

Accordingly, the EHRC said it would begin enforcement action proceedings as of the 9th of April, which could lead to further legal ramifications, alongside an “unlimited fine” set by the courts.

The Financial Times is among those to have released their figures, exposing a 24.4 percent gap, and among the highest to be thus far released.

The FT is only second to The Economist Group, which came in at 32.5 percent.

Despite the high figure, FT chief executive John Ridding maintained that there were “more women in senior roles across the newsroom and business than ever before in our 130-year history”.

Mr Ridding also assured that the publication is aiming to achieve gender equality in leadership roles by 2022.

Next month the Business, Energy and Industrial Strategy Committee is starting an inquiry which into executive renumeration, as well as the private sector gender pay gap.

Rachel Reeves, committee chair commented:

“Transparency on gender pay is only the beginning. We need to examine why these pay gaps persist, why within the same sector there may be companies with wildly differing pay-gaps, and what remedies are needed to tackle them.”