Mandatory reporting on ethnicity pay gaps for businesses – comment from RWK Goodman
The Government has today launched a consultation that looks to introduce mandatory reporting on ethnicity pay gaps in businesses and organisations that have more than 240 employees.
The consultation follows calls in September from the Equalities and Human Rights Commission, which reported that just three per cent of organisations measure ethnicity pay gaps.
Richard Woodman, a partner in the London Employment team at law firm RWK Goodman comments.
“Further mandatory requirements will be costly and burdensome and could also force businesses to ask potentially intrusive questions. This may be further complicated as not everyone who may suffer from a health condition will necessarily meet the definition of disability under the Equality Act 2010.
“Despite the burden, such mandatory requirements would make big companies focus their minds on the situation and force them to think about strategies to increase the numbers of ethnic minorities. They would have to practice what they preach and also show that such candidates and staff are given equal opportunity in relation to recruitment, pay, training and promotion.”