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The House of Commons Business, Energy and Industrial Strategy Committee has published its gender pay gap report, Gender pay gap reporting, in which the Committee focuses on the adequacy and effectiveness of the gender pay gap reporting requirements introduced by the government with effect from April 2018. It also considers the measures that businesses need to take in order to reduce and eliminate this gap.
The report is the first publication of the Committee's inquiry, Corporate Governance: Delivering on fair pay, which was launched in March 2018. The Committee’s report identifies the UK as having one of the highest gender pay gaps in Europe.
As a first step to reduce the gender pay gap, the report suggests that more companies should be required to report on their gender pay gap, why it exists and on what they are doing to close it.
The report conveys the Committee’s view that by widening the gender pay gap reporting obligation, businesses will be required to take responsibility for the impact of their own policies, practices and culture, thereby giving businesses an obligation, not just to reflect change, but to drive it.
What the report shows
The gender pay gap reporting requirements were introduced by the Equality Act 2010 (EqA 2010). Under EqA 2010, all public and private sector organisations with more than 250 employees must report their gender pay gap statistics on an annual basis. Public sector organisations were fir
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