Welcome to our latest Coffee Break in which we look at the latest legal and practical developments impacting employers
Government publishes new guidance on ethnicity pay gap reporting
The government has published guidance on ethnicity pay reporting recognising that "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 disparities exist between different ethnic groups and in turn, gives them an evidence base from which to develop an action plan". This follows the report "Inclusive Britain", published in March 2022, in which the government confirmed that, unlike the statutory duty on employers with at least 250 employees to report their gender pay gap each year, mandatory ethnicity pay gap reporting would not be introduced. The guidance is therefore intended to set out "a consistent approach to measuring pay differences".
As part of its response to Inclusive Britain, the government has also published new guidance on "positive action" which we will be covering in next week's Coffee Break.
What is an ethnicity pay gap?
As with gender pay, the guidance stresses that a pay gap is not the same as unequal pay. It explains that "unequal pay means that employees performing equal work, or work of equal value, are not receiving equal pay. It is unlawful to discriminate both directly and indirectly against employees and people...
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