Under new Government proposals, businesses could be forced to publicly declare their ethnicity pay gap.
The aim of the plans recently unveiled by the Prime Minister is to help minorities at work address disparities between the pay and career prospects of minorities.
Our Employment Partner Julia Fitzsimmons discusses what it might mean for employers:
This new proposal follows hot on the heels of the legal requirement for big businesses to publish their gender pay gap in a bid to level the playing field between male and female workers.
The Equality Act 2010 (Gender Pay Gap Information) Regulations applies to all private, public and voluntary sector organisations with 250 or more employees, who must publish details annually of the pay for male and female workers on their own website and on a dedicated government space.
It’s likely that any ethnicity pay reporting requirement would follow the same pattern. Whilst it may seem like extra red tape for employers it is obviously for a laudable cause.
Whilst many businesses many not fall under the category for any legal declaration should it become law, it is always best practice to have effective equality policies that are widely and clearly communicated to employees.
That way, should your business practices ever come under scrutiny for any reason, you’ll be able to demonstrate a transparent approach to employee pay.
The consultation is open until January so, even if it the Government decides to introduce an ethnicity pay reporting rule, it could be some time before it actually becomes law.
For more information or advice on equality issues, contact Julia on email@example.com or 01952 208420.