The Government has announced that it does not currently intend to adopt any mandatory ethnic pay gap reporting measures. It will instead be publishing guidance for those employers wishing to publish this data voluntarily.
In 2018 the Government published a consultation paper on ethnicity pay reporting. It had proposed that there should be a mandatory duty to report ethnicity pay gap data as little voluntary progress had been made after the 2017 McGregor-Smith Review on race in the workplace (see corporate update 2018/21 for more details).
The guidance to be published by the Government is intended to enable employers to identify the causes of any pay disparities and take relevant steps to mitigate them. It will include case studies drawing on the experience of employers that have chosen to report on ethnicity pay issues, with the aim of establishing a benchmark for an effective action plan to tackle disparity.
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