The Government has launched a consultation into whether ethnicity pay gap reporting should be introduced.
Ethnicity Pay Gap Reporting
The Government launched the consultation into whether to introduce ethnicity pay gap reporting on the 11th October 2018, with a closing date for submissions of the 11th January 2019.
In her review in relation to race in the workplace, published in February 2017, Baroness McGregor-Smith recommended that employers with 50 or more employees be required to publish ethnic pay gap data. However, the Government’s preferred threshold is employers with 250 or more employees, believing that imposing the requirement any lower than that would be too great a financial and administrative burden upon small businesses. Moreover, a threshold of 250 or more employees would match the requirements for gender pay gap reporting.
The Reasons For Launching The Consultation
In launching the ethnicity pay gap reporting consultation, Kelly Tolhurst, the Minister for Small Business, stated: “The government is committed to working closely with businesses on all aspects of diversity and inclusion to ensure that employers can make full use of the talents and hard work of the people that they employ. This is our ambition and it requires a concerted effort on the part of the government and employers to overcome structural, procedural and attitudinal barriers within society and individual organisations. Reporting ethnicity pay information enables employers to identify – and then tackle – barriers to creating a truly diverse workforce. If there is a consistent approach to reporting, they can also benchmark and measure their progress by comparing themselves to other employers and learn from them. We know that these are complex and sensitive issues. This consultation asks for your views on how we can take forward our manifesto commitment to ask large employers to publish ethnicity pay data so we can establish the best and most meaningful approach to 4 drive change, while ensuring proposals are proportionate and do not cause undue additional burdens on business. By understanding and taking action to overcome the barriers faced by all ethnic groups in the workplace, we can put diversity at the heart of how we do business and do right by all working people.”