Employers may have to publish ethnic pay gap report

Tuesday 16th October 2018

Large employers could be required to publish details of any pay gap between different ethnicities after Theresa May announced a consultation on new ethnicity pay gap rules.

The Prime Minister said: “Too often ethnic minorities feel they’re hitting a brick wall when it comes to career progression

“Our focus is now on making sure the UK’s organisations, boardrooms and senior management teams are truly reflective of the workplaces they manage, and the measures we are taking today will help employers identify the actions needed to create a fairer and more diverse workforce.”

In response, Mary Walker, employment partner at Gordons law firm, said:

“Although such reporting can be a burden for businesses, this is another step in the right direction towards the bigger goal of a fairer and more diverse workplace.

“The introduction of gender pay reporting for businesses with over 250 employees has, in reality, made little difference in real terms during the short time it has been in place. It was unrealistic to think any changes would be made overnight. However, it has been successful in raising the topic and highlighting the differences in pay between men and women, as we have seen in high-profile cases like the BBC.

“We can expect any requirement for ethnicity pay reporting to do a similar thing. This won’t be a short-term fix, but it will provide the information needed to highlight the issue as we strive to achieve a fairer workplace.”

Read Mary Walkers’s comments on the Financial Times and Personnel Today.

To discuss in more detail get in touch with Mary Walker, or for anything else relating to employment law, contact our employment and HR team.