If an organisation has 250 or more employees in total but fewer than 250 who are based in Great Britain, is it covered by the gender pay gap reporting duty?

Under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017 (SI 2017/172), an employer is covered by the duty only if it has 250 or more employees. The relevant definition of employee is that under s.83 of the Equality Act 2010. While this definition is silent on the position of employees based outside Great Britain, case law has shown that employees who are based abroad can still be covered if their employment has a strong connection to Great Britain.

The Equality Act 2010: Employment statutory code of practice gives guidance on the territorial scope of the Equality Act 2010. It states that when considering whether or not there is a sufficiently close link between an employee's employment and Great Britain, relevant factors include:

  • where the employee lives and works;
  • where the employer is established;
  • what laws govern the employment relationship in other respects; and
  • where tax is paid.

If an organisation has fewer than 250 employees based in Great Britain or with a close link to Great Britain, it will not be covered by the gender pay gap reporting duty.