Compulsory ethnicity pay reporting to be introduced
Following the introduction of mandatory gender pay reporting for larger employers in April 2017, the government is now consulting on introducing similar requirements in respect of ethnicity pay. The proposal is part of a series of measures to tackle barriers facing ethnic minority workers in the workplace.
The consultation seeks views on practical matters such as the format of reports. For example should they show one headline pay gap figure, several pay gap figures by ethnicity group or a pay gap figure by pay band or quartile?
The government’s preference is that employers with 250 or more employees would be covered by the new requirements. However, it is consulting on this threshold so this figure could change. Reporting would remain voluntary for smaller employers.
The consultation closes on 11 January 2019 so it is quite possible that legislation could be implemented later next year.
Further information
The government’s consultation document can be found here.
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