The decision by the government to release thousands of UK companies from a string of reporting requirements by reclassifying them as small businesses has led to criticism from unions.
Prime minister Liz Truss announced on Sunday (2 October) that, as part of a reforms package to “cut red tape” for businesses, organisations with fewer than 500 employees will be recategorised as small businesses, which, although yet to be clarified by the government, unions believe could make them exempt from mandatory gender pay gap reporting.
Truss announced the new threshold would come into play from yesterday (3 October), in a statement that confirmed “thousands of the UK’s fastest-growing businesses will be released from reporting requirements and other regulations in the future, as part of plans aimed at boosting productivity and supercharging growth”.
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However, while the government reassured that “exemption will be applied in a proportionate way to ensure workers’ rights and other standards will be protected”, unions have spoken out about their concerns regarding the potential effects on equality if these changes were applicable to gender and executive pay reporting.
The Trades Union Congress (TUC) voiced concerns about the potential impact on working women and pay parity. Its general secretary, Frances O’Grady, said: "Make no mistake, these changes represent real...
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