In January 2025, President Trump signed three Executive Orders (EOs) that aimed at rolling back the Diversity, Equity, Inclusion, and Accessibility (DEIA) targets and programs previously promoted within the federal government.

The three Executive Orders (EO) signed by President Trump were:

1. “Ending Radical and Wasteful Government DEI Programs and Preferencing”– Focused on curbing government spending on DEI programs, and ending of the promotion of diversity-based policies deemed inconsistent with federal anti-discrimination laws.
2. “Ending Illegal Discrimination and Restoring Merit-Based Opportunity”– eliminating the affirmative action mandates and requiring all appointments to be on merit

3. Defending Women from Gender Ideology Extremism & Restoring Biological Truth to the Federal Government requires that their gender policies align only with biological distinctions of male and female

Additionally upon swearing in of the new Attorney General,  Pam Bondi issued two Memorandums to give effect to these EO’s. In the Memorandum entitled  Ending Illegal DEI and DEIA Discrimination and Preferences she directed DOJ’s Civil Rights Division to:

“investigate, eliminate, and penalize illegal DEI and DEIA [diversity, equity, inclusion, and accessibility] preferences, mandates, policies, programs, and activities in the private sector and in educational institutions that receive federal funds.

Therefore it mandates the identification of steps to deter DEI programs deemed discriminatory, including proposals for up to nine civil compliance investigations and possible criminal investigations. Targeted entities include large publicly traded corporations, non-profits, wealthy foundations, bar/medical associations, and well-endowed universities.

The report must also address potential litigation regulatory actions, and guidance.

A second internal facing one entitled Eliminating Internal Discriminatory Practices directed federal government to rescind their policies, practices that were not base don meritorious appointment and issue a report paying particular attention to ending:

“references to DEI or DEIA in (1) training and programs, including references to “unconscious bias,” “cultural sensitivity,” “inclusive leadership,” and any emphasis on race- or sex-based criteria rather than merit; (2) policies and guidelines, including hiring, promotion, or performance evaluation policies; and (3) vendor contracts and budget materials.”

So what does this all mean?

Executive Orders are directives issued by the President, instructing government agencies to take specific actions to faithfully execute federal laws. While EOs shape government policies, they do not change the law itself. Instead, they guide federal agencies on how to interpret and implement existing laws. However, adherence to these directives is crucial, as failure to comply can lead to legal investigations and other consequences.

The Memorandums explains how the Department of Justice will act to take effect to these EO’s. There remains uncertainty about these provisions and further guidance from DOJ is awaited. There are also legal challenges underway on the validity of these new provisions on grounds that they infringe constitutional and free speech rights.

The effects of these include:

1. US Government Employees on DEI Programs

DEI staff within the federal government were placed on paid leave almost immediately, and related programs were mandated to cease within 60 days.

2. Federal Contractors

Businesses contracting with the U.S. government, whether domestic or international, are required to comply with these orders. They must certify that their DEI initiatives do not violate any federal anti-discrimination laws. Non-compliance risks the termination of their government contracts. False statements can result in a False Claims Act (FCA) and non-payment of fees and a fine triple the size of the contract.

3. Ripple Effects Globally

The impact of these orders isn’t confined to the U.S.:

Multinational Corporations and large global businesses, may feel pressured to align with the new directives. Many will opt to avoid scrutiny, potentially leading to a reduction in the promotion of DEI programs across the board.

Small Businesses Smaller companies that look to larger firms for leadership and trends in diversity practices may also scale back their DEI initiatives.

Relevance in the UK (NI and GB) and Beyond

While the U.S. has historically pursued affirmative action policies to promote underrepresented groups, these steps often extend beyond what is permitted under Northern Ireland (NI) and Great Britain (GB) laws.

The recent EOs have introduced uncertainty. Businesses across the globe are trying to navigate this changing landscape carefully. For those in NI and GB, the focus must remain on fulfilling equality obligations under local law while striving to maintain inclusive and diverse workplaces.

We have provided summary of the laws in Northern Ireland below to assist businesses who may be assessing what they must continue to do here to comply with the laws.

Northern Ireland

Northern Ireland has its own legislative regime which is similar to GB but has some distinct differences.

There is a requirement for registered employers to monitor community background and sex of employees on annual basis

A form of positive action and affirmative action is permitted in Northern Ireland but operates in a very different way to that in US.

Laws requiring Gender, Ethnicity and Disability Reporting are also due to come into force

DEI Laws in Northern Ireland

Various Equality laws (see below) cover 9 protected characteristics of Sex / Pregnancy or Maternity Leave / Gender Reassignment Being Married or in a Civil Partnership / Disability / Race / Religious or similar Philosophical Belief / Political Opinion / Sexual Orientation / Age

See https://www.equalityni.org/legislation

Equal Pay Act (NI) 1970, and Sex Discrimination (NI) Order 1976

These laws prohibit discrimination and harassment on the grounds of sex; pregnancy and maternity leave; gender reassignment; being married or being a civil partner.

Special protection for a female on maternity leave from being made redundant (first refusal of any suitable alternative employment)

Fair Employment & Treatment (NI) Order 1998

This law prohibits discrimination and harassment on the grounds of religious belief or similar philosophical belief and political opinion.

Fair Employment and Treatment Order includes Article 55 Reviews, so that all registered employers (11 or more employees) must monitor the composition of their workforce in terms of whether they are from Protestant or the Roman Catholic communities or neither and also monitor their sex and file an annual report to Equality Commission Northern Ireland. Criminal Offence not to comply.

Northern Ireland Act 1998

Section 75 requires public authority employers to promote, monitor and to consider taking positive action where appropriate across the nine equality categories

Disability Discrimination Act 1995 and Autism Act (NI) 2011/ Autism (Amendment) Act of 2022

This law prohibits disability discrimination and disability-related harassment against disabled persons.

Employers are allowed to reserve job vacancies for: people who have disabilities (but not for people who do not have disabilities). Employers must act with caution

Autism Act places a duty upon government to implement an effective autism awareness campaign strategy.

Race Relations (NI) Order 1997

This law prohibits discrimination and harassment on the grounds of race; colour; ethnic or national origins; nationality; belonging to the Irish Traveller community.

Employment Equality (Sexual Orientation) Regulations (NI) 2003

This law prohibits discrimination and harassment on the grounds of sexual orientation.

Employment Equality (Age) Regulations (NI) 2006

This law prohibits discrimination and harassment on the grounds of age.

These Regulations could permit an employer to commit an act of direct discrimination (for example, reserving a quota of jobs for people in a certain age group) so long as the act can be objectively justified. This can only occur where the act is a proportionate means of achieving a legitimate aim.

Article 2 (Dedicated Mechanism) Protocol on Ireland and Northern Ireland 31 January 2020

Sets out certain commitments in relation to rights and equality to ensure that there is no diminution of rights, safeguards or equality of opportunity, as set out in that part of the 1998 Agreement in the area of protection against discrimination, as enshrined in the provisions of Union law listed in Annex 1 to the Protocol

NI Equality codes of practice are:

• Fair Employment in Northern Ireland – Code of Practice
• Removing Sex Bias from Recruitment and Selection – A Code of Practice
• Code of Practice on Equal Pay
• Code of Practice for Employers for the Elimination of Racial Discrimination and the Promotion of Equality of Opportunity in Employment
• Disability Code of Practice – Employment and Occupation

Gender, Ethnicity and Disability Pay gap Reporting due to come in imminently.

Positive Action / Affirmative Action that is permitted in NI

The basic rule is that it is unlawful to make recruitment or other employment decisions on any of the 9 protected grounds. Equality Commission in Northern Ireland has produced Positive Action an Employers Guide

Two important exceptions to this rule are that employers are, however, allowed to reserve job vacancies for:

(a) people who have disabilities (but not for people who do not have disabilities). Employers who do this must still act with some caution.

(b) people in certain age groups, but only where an employer can objectively justify such an action

Other Outreach Positive Action is permitted subject to certain preconditions: In summary, outreach positive action involves reaching out to specific under-represented or disadvantaged groups of people: for example, depending on the specific circumstances that apply in a particular workplace the groups might be: disabled people, members of the black or ethnic minority communities, women or men, Protestants or Roman Catholics, gays and lesbians and can include:

• Encouraging people to apply for job and training opportunities
• Offering training opportunities and facilities
• Reserving job vacancies for persons who are unemployed

If you require more information on this please contact our Legal Team.

Employers often face challenges in balancing the rights of employees with conflicting views, such as gender-critical beliefs and those regarding sexual orientation or same-sex marriage. These cases are frequently fact-specific, with actions that may be appropriate in one instance not being suitable in another. However, the recent Court of Appeal judgment in the case of Kristie Higgs v Farmor’s School provides a helpful framework for employers navigating this complex issue.

Case Overview

Kristie Higgs, a teacher at Farmor’s School, was dismissed over two posts on her personal Facebook account, made under her maiden name. The posts, which criticized same-sex relationships, were deemed transphobic and homophobic by a parent who complained to the headteacher.

Legal Proceedings

In the tribunal, it was argued that Higgs was entitled to hold her views but was dismissed due to the objectionable manner in which she expressed them. Initially, the Employment Appeal Tribunal (EAT) had remitted the case back to the Employment Tribunal (ET) due to flawed reasoning. However, the Court of Appeal overturned this decision, finding Higgs’s dismissal to be discriminatory and providing a clear framework for employers.

Key Points from the Judgment

1. Unlawful Direct Discrimination: Dismissal solely because an employee has expressed religious or other protected beliefs, to which the employer objects or fears will offend third parties, constitutes unlawful direct discrimination.
2. Proportionate Response: If the dismissal is motivated not just by the expression of the belief but by something objectionable in the way it was expressed, the employer must show that the dismissal was a proportionate response. This determination must be objective and justified.

Court’s Conclusion

The Court concluded that the factors relied upon by Farmor’s School could not justify Higgs’s dismissal:

• There was no reason to believe that Higgs, who had worked at the school for six years without complaint, would express such views at work or display discriminatory attitudes towards pupils.
• Although the posts’ language was rhetorical and provocative, it did not express hatred or disgust for gay or trans people. Higgs stated she endorsed the content of the messages, not their language.
• The risk to the school’s reputation was minimal, given the limited access to Higgs’s Facebook account.

Paragraph 175, offers valuable insights for those who want a quick summary of the case.

Conclusion

This case emphasizes that the appropriateness of behaviour must be determined objectively and that any disciplinary action must be proportionate. Employers must prove that the dismissal is objectively justified, not merely that they believed it to be justified.

It is important for businesses to pause and take a measured response when dealing with conflicting beliefs.

From 31 December 2024, the Home Office Guidance Guidance Workers and Temporary Workers: sponsor a skilled worker prohibits the recoupment of certain fees from sponsored workers. These changes are aligned with a commitment made in the Written Ministerial Statement on 28 November 2024, ensuring that specific costs are not passed on to sponsored workers.

Key Changes

1. Skilled Worker Sponsor Licence Fees:

Sponsors are no longer permitted to pass on the cost of the sponsor licence fee or associated administrative costs, including premium services, to sponsored workers.

2. Certificate of Sponsorship (CoS) Fees:

For CoS assigned on or after December 31, 2024, sponsors cannot pass on these fees to sponsored workers.

3. Amendment for Study Route Switch:

A minor amendment has been made reflecting a change of name for the CoS category where the worker is applying to switch from a study route.

4. Defined CoS Assignment:

It is now clarified that a Defined CoS must be assigned to a worker within 90 days from the date it was allocated to the sponsor, instead of the previously stated 3 months.

Consequences for Sponsors:

If a sponsor is found to have recouped or attempted to recoup these costs from sponsored workers, their sponsor licence will usually be revoked.

Commentary:

This now answers the question if these costs can be passed on to candidates. Indeed we understand that on occasion candidates offer to pay these costs in exchange for employment. Moving forward, this practice is no longer permissible. Businesses with any contractual recoupment clauses for these fees must ensure that these clauses are removed so as to comply with the new Guidance.

The Industrial Tribunals and Fair Employment Tribunal (Constitution and Rules of Procedure) (Amendment) Regulations (Northern Ireland) 2024 came into effect on 12 December 2024, making amendments to The Industrial Tribunals and Fair Employment Tribunal (Constitution and Rules of Procedure) Regulations (Northern Ireland) 2020.

The key amendments include:

1. Employment Judge Sitting Alone

An Employment Judge may now sit alone in certain circumstances. Whilst the specific conditions for this are not detailed in the Regulations, they may be outlined in a subsequent Practice Direction. Currently Employment Judges in Northern Ireland can sit alone in unlawful deduction from wages claims.

Since 2012, Employment Judges in Great Britain have been allowed to sit alone in unfair dismissal cases. We anticipate that we may follow this approach. In July 2024, the Senior President of the Tribunals in GB issued a Practice Direction which now permits Employment Judges to sit alone in all cases in GB.

2. Multiple Claimants on a Single Claim Form

In certain circumstances the amendments allow two or more Claimants to make their claim on a single Claim Form. This change is intended to streamline the process for cases involving multiple parties.

3. Default Judgments and Recording of Judgments

The Regulations provide for the issuance of default judgments and exempt the recording of judgments on the register when a claim is withdrawn.

4. Reasonable Notice of Hearings

The amendments require reasonable notice of Hearings, which can be less than 14 days if all parties consent. This flexibility is designed to expedite the scheduling of Hearings.

Commentary

As the Employment Tribunal in NI continues to modernise it will be interesting to see whether we adopt the GB practice of allowing Employment Judges to sit alone in all cases.

In our experience lay members play a critical role in Employment Tribunal Hearings by bringing realism and industrial knowledge to the decision-making process. In panels of three, lay members have equal voting power and can out-vote the Employment Judge, although this is rare. Indeed, there was an extensive recruitment campaign for lay members which was completed earlier in 2024 so it will be interesting to see how the extent of their role develops.

EHRC GUIDANCE: NEW SEXUAL HARASSMENT LAW AND WORKPLACE CHRISTMAS PARTIES: WHAT EMPLOYERS NEED TO KNOW

On 11 December 2024, the Equality and Human Rights Commission (EHRC) published guidance aimed at assisting organisations in complying with the new positive duty on employers to prevent sexual harassment at Christmas parties. Although the guidance states it is specific to Christmas parties, it can be applied to any work-related event.

Background

In Great Britain, a positive duty to prevent sexual harassment came into force on 26 October 2024. To accompany this new duty, the EHRC updated its technical guidance on Sexual harassment and harassment at work: technical guidance and released an Employer 8-step guide: Preventing sexual harassment at work

This New sexual harassment law and workplace Christmas parties: What employers need to know is intended to supplement those Guides.

EHRC’s Top 3 Steps for Preventing Sexual Harassment During Work Parties

The EHRC has outlined three essential steps that organisations should take to prevent sexual harassment and ensure a safe environment for all employees.

1. Think Ahead to Prevent Problems and Risks

• Alcohol: Recognize that alcohol can lower inhibitions and lead to inappropriate behaviour. Consider setting limits on alcohol consumption at events.
• Overnight Stays and Travel: Ensure that accommodation arrangements are safe and appropriate. Communicate that the same standards of behaviour apply at all times, not just during the event itself.
• Power Imbalances: Be mindful of the dynamics between senior staff and junior colleagues, and consider the gender composition of the workforce. Address potential issues proactively.

2. Set Expectations Early and Remind of Company Policies

• Define Sexual Harassment: Ensure employees understand what constitutes sexual harassment in the workplace.
• Reporting Procedures: Remind staff about the procedures for reporting and witnessing sexual harassment.
• Behaviour Standards: Reinforce the standard of behaviour expected at both company-arranged events and informal social gatherings.

3. Consider the Risk of Third-Party Harassment

• Risk Assessment: Complete a risk assessment during the planning stages of the event to identify potential hazards.
• Safer Locations and Activities: Use the risk assessment to choose safer locations and activities that minimize the risk of harassment.
• Communication: Clearly communicate your organization’s expected standards of behaviour to staff and any relevant third parties involved in the event.

Conclusion

Whilst the new duty to prevent sexual harassment does not extend to Northern Ireland the EHRC’s guidance is very helpful as it provides a proactive approach to preventing sexual harassment at work-related gatherings. By thinking ahead, setting clear expectations, and considering the risk of third-party harassment, organisations can create a safer and more inclusive environment for their employees.

Implementing these steps would not only help to comply with the new legal duty In Great Britain it would also foster a respectful and supportive workplace culture.

Taking these steps would also assist any Organisation in establishing that they have taken all reasonable steps to prevent sexual harassment and defend any sexual harassment claim in Northern Ireland.

EQUALITY AT WORK: GB CALL FOR EVIDENCE ON STATUTORY PATERNITY & SHARED PARENTAL LEAVE

2024 was a significant year for employment law, with a strong focus on reform of rights in the workplace. One of the areas currently under review in Great Britain is statutory paternity and shared parental leave.

Background and Context

On 6 December 2024, the GB Women & Equalities Commission launched a call for evidence to inform their work ahead of the GB Government’s proposed review of the parental leave system.

This move comes in response to the recognition that the current system does not adequately support working parents. The GB draft Employment Rights Bill published in October 2024 includes measures to enhance family-friendly rights at work, but states that a comprehensive review is necessary to create a more effective and equitable system.

Northern Ireland (NI) is currently working on implementing an effective Early Learning and Childcare Strategy, which is considered a critical driver of gender equality. Recent reforms to parental leave proposed in the NI Good Jobs Consultation  only tweak at the existing regime, addressing some of its current inefficiencies. These changes would more or less align NI to the current position in GB.

In Great Britain the review is much more far reaching.

The Call for Evidence

The Call for Evidence is the first stage of this review. The Committee has highlighted that the unequal division of childcare responsibilities is a key driver of wider gender inequality and the gender pay gap. The goal is to identify the most effective ways to encourage equal sharing of childcare and domestic responsibilities between mothers and their partners.

Employers are encouraged to share their experiences and views, especially on how inequalities in the uptake of shared parental leave by ethnicity, income, qualification level, and occupational status can be addressed.

Questions

The Committee is seeking written submissions on the following points:

1. What have been the longer-term equality impacts of the scheme, for example on equal sharing of responsibilities for children as they grow up, and wider domestic responsibilities?
2. What have been the labour market impacts of the scheme, particularly for women?
3. Why has take up of statutory shared parental leave been low and what could be done to increase take up?
4. How can inequalities in take up of shared parental leave, including by ethnicity, income, qualification level and occupational status, be addressed?
5. Are there potentially more effective alternatives to the current “maternal transfer” model of shared parental leave?
6. Which countries have most effectively incentivised equal parenting and wider gender equality through their approaches to parental leave? What would be the costs and benefits of replicating?

Timeline for Submissions

Employers and other stakeholders are invited to submit their written evidence by Friday, 31 January 2025. These insights and experiences will then help role shape what is hoped to be a more equitable parental leave system.

On 26 November 2024, the Northern Ireland Statistics & Research Agency (NISRA) published the Women in Northern Ireland 2023 Report . This report delves into the characteristics of women in the Northern Ireland labour market and highlights some critical insights for employers.

Key Findings

A consistent feature of the report is the higher economic inactivity rates for females. Whilst women make up half of the working-age population (those persons aged between 16-64 years old), significant disparities exist when comparing economic participation between genders.

Comparisons Between Females and Males

1. Economic Inactivity:

Three in ten working-age women are not working compared to one in five working-age men.

2. Reasons for Economic Inactivity:

The main reason for economic inactivity among women is long-term sickness. Thereafter for women, looking after the family is the second most common reason for economic inactivity. In contrast, ‘looking after the family’ is the least common reason given by men.

3. Employment Patterns:

Women are less likely to be self-employed and more likely to work part-time. Approximately 60% of employed women with dependent children work full-time, compared to 96% of employed men with dependent children.

The age of the youngest child in the household increases the likelihood of women working part-time. Women with dependent children are more likely to work full-time when the youngest dependent child is at secondary school.

Women with dependent children (of any age) are more likely to work part-time than those without children, while the opposite is true for men.

4. Employment Rates and Earnings:

Over the past ten years, the female employment rate has been lower than that of males. Women earned 7.8% less than men in Northern Ireland, meaning for every £1 earned by men, women earned 92p.

Commentary

These findings are not surprising, but they emphasize the ongoing challenges women face in the workforce. Particularly striking is the disparity in reasons for economic inactivity and the continued prevalence of part-time work among women, especially those with dependent children.

To see more women in leadership positions, employers need to address these challenges head-on. With the implementation of Gender Pay Gap reporting now is a good time for each Organisation to consider the data in their workforces and identify steps they can take to support female employees and address these disparities.

Audio recording of meetings – are you complying with Data Protection obligations?

Whilst most employers continue to make handwritten notes of meetings including investigations, disciplinary, and grievance meetings, with advances in technology and the increasing use of AI some employers are now considering alternative methods of notetaking. Some AI tools automatically transcribe the content of a meeting, alternatively parties may use more traditional audio recording and manually transcribe the content following the meeting.

Technology isn’t always without its glitches and from a practical perspective we would encourage any organisation considering moving to this type of recording to test any system rigorously before moving entirely away from handwritten notes.

The purpose of this article however is to consider the data protection implications of such recordings.

 Be aware of your data protection obligations

Recordings will contain the personal data of the participants and also contain the personal data of anyone who is discussed during the meeting. It is highly likely that in any such meeting Special Category data (which attracts a higher level of protection) will be recorded, for example, information about health, trade union membership, religious beliefs, race, sexual orientation etc.

Compared to making a handwritten note, any form of audio recording is more intrusive as it not only captures what each individual said but also their voice. If a video recording is made, for example of a meeting conducted via Teams, this is more intrusive again.

 Carry out a Data Privacy Impact Assessment

In light of this we strongly recommended that a Data Privacy Impact Assessment (DPIA) is carried out before an organisation take steps carries out any form of audio recording.

A DPIA is a process designed to help you systematically analyse, identify and minimise the data protection risks of a project or plan. It is a key part of your accountability obligations under the UK GDPR, and when done properly helps you assess and demonstrate how you comply with all of your data protection obligations. Conducting a DPIA is a legal requirement for any type of processing that is likely to result in a high risk to the rights and freedoms of individuals. The ICO website contains a template that you can use or adapt: https://ico.org.uk/media2/migrated/2553993/dpia-template.docx

 Identify your lawful basis for processing 

As part of the DPIA the organisation will need to identify its lawful basis for processing, and then document the lawful basis, before any processing (including recording) can begin. As members will be aware, due to the imbalance of power in the employer/ employee relationship consent cannot be used as a lawful basis for processing. Therefore you will need to consider whether you can bring it under “necessary for the performance of the contract” or the more flexible “legitimate interests” however this requires a Legitimate Interests Assessment and can also be open to challenge.

 Update your privacy information

Where audio recording is being used, it will also be necessary to issue all parties to a recorded meeting with an updated privacy notice. This updated privacy notice should detail information including:

• the lawful basis for processing;
• how the recording will be used;
• who it will be shared with;
• where it will be stored; and
• for how long etc

It must be provided to all parties in advance of the meeting. This could be achieved through a statement in the Disciplinary Policy and Procedure / Grievance Procedure itself provided the parties are made aware and are able to access to it. Alternatively, you may need to consider issuing a Just in Time Privacy Notice on each occasion.

You also need to define how long your organisation will keep the recording. We are aware that some employers transcribe the recording, share a copy of the typewritten notes with the employee, then erase the recording once the typewritten notes are agreed. You should however consider how you will deal with any disputes about the transcript as any party to the meeting could request a copy of the recording.

Deletion of the recording also may not be straightforward as it must be retained if it is relevant to any potential legal proceedings.

 Consider how you will deal with requests for the recording

Any individual who attends a recorded meeting may issue a Data Subject Access Request (DSAR) and as part of this request a copy of the audio recording. Such a request could be issued by the employee who is the “subject” of the meeting, it may be their companion/Trade Union representative, or anyone else in attendance.

There is an exemption in the Data Protection Act 2018 that states you do not have to comply with a DSAR if doing so would mean disclosing the personal data of a third party except where:

• the other party has consented to the disclosure; or
• it is reasonable to reply to the request without that individual’s consent

As all of the attendees at the meeting heard what was discussed, it is highly unlikely you could refuse to share the recording on the basis consent is required (or has been denied) by others who attended the meeting. If people who were not present at the meeting are discussed, this opens up a different line of consideration.

If you are sharing an audio recording then it should be subject to strict controls, some of which would likely include: that it is not to be published (for example, online); and an agreement about who it can be shared with/played to however this may be difficult to enforce in practice.

Overall, whilst the move to digital forms of recording brings a number of benefits, there are certainly a number of legal implications to consider.

In June 2024, we contacted the NI Department of Communities (DfC), which is responsible for introducing the NI Gender Pay Gap Regulations, asking about the expected timeline for the implementation of Gender Pay Gap Regulations. Their response was a vague “in due course.”

Then on 25 November 2024, DfC quietly launched the Consultation on The Gender Pay Gap Information Regulations  to plan how these Regulations will be implemented in NI.

Background

Most people are aware that the Gender Pay Gap regulations require the reporting of differences in pay between male and female employees. These regulations have been in place in Great Britain for seven years and initially it had been envisaged that similar measures would be introduced in NI in and around the same time. Due to a delay with the transfer of functions between NI Departments (in part caused by delays with covid and Stormont being dissolved) the regulations were not implemented and were placed on hold.

The purposes of these regulations in the main are to:

1. Identify gender pay gaps.
2. Analyse the drivers behind these gaps.
3. Explore how employers’ policies and practices may have contributed to these gaps.
4. Encourage employers to take remedial action.

The consultation does note that the Gender Pay Gap in NI is lower than in the rest of the UK. This is largely due to a higher proportion of public sector jobs, where the pay difference is 6.2%. However, in the private and voluntary sectors in NI, the difference is more significant, with females earning 14.8% less than males.

Proposals

The NI Regulations are intended to go further than the original GB Regulations by requiring employers to publish information on workers related to ethnicity and disability. Although there is no legal obligation to record ethnicity or disability, the NI Regulations propose that, when this information is available or the employer is notified, it should be recorded and reported.

The Consultation seeks response on a proposed snap shot date of 5 April each year. The snap shot date is the specific date that businesses base their gender pay gap calculations on payroll data.

The regulations are proposed to apply to employers with 250 or more employees, the same as currently in place in GB. As of June 2024, it is estimated that this would apply to 345 employers in Northern Ireland.

Consultation Details

The consultation is short with only 16 questions seeking views on how the regulations will be implemented, not on whether they will be implemented which is a given. For example, one of the questions asks if the Office of National Statistics (ONS) definition of calculating “pay” should be used.

Timeline

The estimated timeline for implementing these regulations is approximately 18 months for the policy proposals, with laws likely to be passed in early 2027. Therefore, actual reporting would typically begin a year later, in 2028 and data gathered over the previous year.

Consultation Period

The consultation will run from 25 November 2024 until 14 February 2025.

This year, 2024 has been a significant year for employment law, and these regulations will be discussed at the Employers Federation End of Year Gathering on 19 December 2024. If you wish to book on that event please email at john@eefni.org

We very much encourage Members to feed in their views and opinions which will help shape our responses particularly from those with experience of completing gender pay gap reports in other jurisdictions. Any responses are welcome and should be sent to michelle@eefni.org

The Labour Government’s Autumn’s Budget Autumn’s Budget  has met with mixed responses.  Tax is not one of the areas that is devolved to the Northern Ireland Assembly and The Executive so the increases in taxation will apply here.

[Note however Northern Ireland does have responsibility for local taxes (domestic and business rates). In March 2015 Parliament passed the Corporation Tax (Northern Ireland) Act 2015 which, subject to commencement regulations, will devolve corporation tax rate setting powers to the Northern Ireland Assembly. The Government has committed to commencing the regime if the NI Executive demonstrates its finances are on a sustainable footing.]

THE TAX RISES IN THE BUDGET THAT WILL AFFECT BUSINESSES INCLUDE:

Employers National Insurance Contributions (NIC)
This is a rise of 1.2% rise from 13.8% to 15% to only the Employers element of National Insurance Contributions. The threshold at which payments start will also fall to £5,000 from £9,100 meaning that businesses will have to start paying NIC on a larger portion of their employees’ salaries.

To soften the impact on small businesses, in April 2025 Employment Allowance will increase to £10,500 (from £5,000), providing some protection to the smallest businesses.

Income Tax

The Budget confirmed that Income Tax and National Insurance Contributions thresholds will continue to be frozen and only unfrozen from 2028-29 onwards.

National Living Wage
Prior to the Budget the Government confirmed that from April 2025 the National Living Wage for those aged 21 and over would increase to £12.21, representing a 6.7% increase of 77p.

National Minimum Wage

In addition the Government also confirmed that they would fully accept the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW). For the first time, the Government asked the LPC to take into account the cost of living, including expected trends in inflation up to March 2026, when recommending the NLW. The LPC expects its recommended rate to represent a real-terms increase across the whole of the period to March 2026, using any major inflation measure, thereby protecting low-paid workers’ living standards.

• 18-20 years old from £8.60 to £10.00 (increase of 16.3%)
• 16-17 years old from £6.40 to £7.55 (an increase of 18.0%)
• Apprentice rate from £6.40 to £7.55 (increase of 18.0%)

Corporation Tax

This will be capped at 25% for next 5 years and small business tax multiplier froze.

Capital Gains Tax (CGT)
Effective immediately, CGT charged on profit made from the sale of assets, will increase with the lower rate rising from 10% to 18%, and the higher rate from 20% to 24%.

Fuel Duty
Fuel duty will be froze for another year with the temporary 5p cut extended to 22 March 2026.

Company Car Tax Incentives for electric vehicles.

Impact
The investment projects in England proposed to boost the economy do not apply here. Instead Northern Ireland receives additional funding via the Barnett formula and NI Executive then decides on how to spend that money.

This additional funding amounts to £1.5 billion in 2025-26:

• £1.2bn for day-to-day spending and;
• £270m for capital expenditure i.e. infrastructure investment.

Statistics for March 2024 show that the majority (89% or 71,425) of businesses in Northern Ireland are micro-sized businesses (less than 10 employees). These tax measures will affect all businesses especially with the higher minimum wage and changes afoot on employment rights.

See Press Release: A Budget to fix the foundations and deliver change for Northern Ireland