It is already a statutory requirement for employers with at least 250 employees to measure and report gender pay gaps. The government has decided not to introduce a similar legal requirement for employers to publish their ethnicity pay gaps but it has now published guidance for those wishing to report voluntarily. 

Analysing ethnicity pay information is one way employers can identify and investigate disparities in the average pay between ethnic groups in their workforce. It helps employers understand whether unjustifiable differences exist between different ethnic groups and in turn, gives them an evidence base from which to develop an action plan. The government guidance sets out a consistent approach to measuring pay differences.

The guidance for employers provides practical advice on how to measure and report on any ethnicity pay differences within their workforce. Much of the guidance – including the methodology for the calculations – mirrors the approach set out in the guidance for gender pay gap reporting. This should help employers to avoid having to run different processes to collect pay data for both sets of calculations. It should mean that published figures from different businesses can be compared easily.

The guidance also suggests that employers may want to consider publishing an action plan that explains how they intend to address any pay gaps in their ethnicity pay figures. A good action plan should name clear, measurable targets that the employer commits to achieving within a chosen time frame. 

Speak to Jon Dunkley

Jon is a Partner at Wollens and can advise you. Contact Jon via email jon.dunkley@wollens.co.uk or call 01271 341021.

Jon Dunkley - Wollens Solicitors Devon

You can also complete an online enquiry form. One of the Wollens team will contact you as soon as they are available.

Related News & Insights

2 minute read
Wollens feature in most Recommended Law Firms in the South West! - Wollens Solicitors Devon

Wollens feature in most Recommended Law Firms in the South West!

Read Article
4 minute read
Understanding Shaken Baby Syndrome: A Guide for Parents - Wollens Solicitors Devon

Understanding Shaken Baby Syndrome: A Guide for Parents

Read Article
6 minute read
Buying your next home, Proof of funds - Wollens Solicitors Devon

Buying your next home, Proof of funds

Read Article
5 minute read
Entrepreneurs: are you leaving a headache for your executors? - Wollens Solicitors Devon

Entrepreneurs: are you leaving a headache for your executors?

Read Article
2 minute read
Chloe Emery qualifies as Solicitor at Wollens - Wollens Solicitors Devon

Chloe Emery qualifies as Solicitor at Wollens

Read Article
5 minute read
Devon Local Government Reorganisation Approved: What Does It Mean for Planning? - Wollens Solicitors Devon

Devon Local Government Reorganisation Approved: What Does It Mean for Planning?

Read Article
3 minute read
Electronic and workplace balloting: what employers need to know - Wollens Solicitors Devon

Electronic and workplace balloting: what employers need to know

Read Article
8 minute read
Breach of fiduciary duty – how should a director respond to an accusation of breach? - Wollens Solicitors Devon

Breach of fiduciary duty – how should a director respond to an accusation of breach?

Read Article