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Friday, October 16, 2026

Employment Law Coffee Break | Ethnicity pay gap reporting, other diversity initiatives and the spring statement - Lexology

Welcome to our latest Coffee Break in which we look at the latest legal and practical developments impacting employers.

No mandatory ethnicity pay gap reporting: guidance to be published in 2022

The government has published its response to the report of the Commission on Race and Ethnic Disparities which made a number of recommendations to address ethnic and racial disparities across society. The response "Inclusive Britain" sets out over 70 actions in response to these recommendations, grouped under three main themes: trust and fairness, opportunity and agency, and inclusion. Together, these actions set out an inclusion strategy for Britain in an era of rapidly changing demographics, social media, increasing ethnic diversity and advances in artificial intelligence (AI).

The response states that mandatory ethnicity pay gap reporting will not be introduced, as "it may not be the most appropriate tool for every type of employer seeking to ensure fairness in the workplace" and the government also "want to avoid imposing new reporting burdens on businesses as they recover from the pandemic". Instead, the government will be supporting employers with voluntary reporting and will publish guidance in summer 2022 to include case studies of those companies who are already reporting, and will give employers the tools to understand and tackle pay gaps within their organisations and build trust with employees. The response states that "once employers are equipped with a trustworthy,...



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