Petition Introduce Mandatory Ethnicity Pay Gap Reporting
Much like the existing mandatory requirement for employers with 250 or more employees must publish their gender pay gap. We call upon the government to introduce the ethnicity pay gap reporting. To shine a light on race / ethnicity based inequality in the workplace so that they can be addressed.
Currently there is a lack of data available in gauging the ethnicity pay gap in the workplace. Introducing these measures will allow employers to be held accountable in closing the gap where there is disparity. In order to achieve a fairer workplace publishing this data is one of the next steps to knowing how extensive the issues are from a race and ethnicity perspective and not just through the lens of gender.
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This response was given on 24 June 2020
The Government ran a consultation from October 2018 to January 2019 on Ethnicity Pay Reporting and received over 300 detailed responses. We are currently analysing the responses.
Building a fairer economy means ensuring the UK’s organisations reflect the nation’s diversity – from factory floor to boardroom. We are committed to working closely with the business community to consider the steps that can be taken to build more inclusive workplaces, including reporting on diversity.
The Race Disparity Unit’s Ethnicity Facts and Figures website already publishes data collected by government about the different experiences of the UK’s ethnic groups at a national level. In 2018/19, the Government consulted on options for going further, exploring possibilities for employer-level ethnicity pay reporting.
Following the consultation, Government has met with businesses and representative organisations to understand the barriers towards reporting and what information could be published to allow for meaningful action to be taken. It is essential that any reporting is reliable and meaningful, and that is why last year we also ran a voluntary methodology testing with a broad range of businesses to better understand the complexities outlined in the consultation using real payroll data.
This work highlighted the genuine difficulties in designing a methodology that produces accurate figures that allows for interpretation and action from employers, employees and the wider public. It is also important that any reporting protects employee anonymity and avoids undue burdens on business.
On 14 June the Prime Minister announced a new cross-government Commission on Race and Ethnic Disparities which will examine continuing racial and ethnic inequalities in Britain and ways Government can address these and improve lives. Further information will be published in due course.
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