Government urged to make ethnicity pay gap reporting mandatory
30 June 2021
The Trades Union Congress (TUC), Confederation of British Industry (CBI) and the Equality and Human Rights Commission (EHRC) have joined forces to urge the government to introduce mandatory ethnicity pay gap reporting.
On 25 June 2021, they sent a joint letter to the Chancellor of the Duchy of Lancaster, Michael Gove, which stated:
“Introducing mandatory pay reporting on ethnicity would transform our understanding of race inequality at work and most importantly, drive action to tackle it where we find it.”
Gender pay gap reporting was made a legal requirement for businesses employing more than 250 staff back in 2017. It is felt that making ethnicity pay gap reporting mandatory would be the next logical step.
There are already a number of businesses who voluntarily report their ethnicity pay gaps but making it mandatory would result in increased transparency and could spark widespread change.
The joint letter also urges ministers to establish a precise timeframe for ensuring that ethnicity pay gap reporting is made a legal requirement.
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