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Call for ethnic pay gap reporting

Howells Solicitors

11 Oct, 2018

Theresa May has called for ethnic pay gap reporting – which is intended to be submitted in the same manner as employer’s obligation to report gender pay (business with 250 employees or more).

The Equality and Human Rights Commission (EHRC) reports that approximately only 3% of employers measure ethnicity pay gaps.

An audit carried out in London earlier this year, identified a significant pay gap between White British employees & BAME (black and ethnic minority) employees, with the largest disparity proving to be 37.5% – Bearing in mind that a national consensus (dated 2011) had established that 40.2% of London residents identified with either the Asian, Black, Mixed or Other ethnic group.

Whilst there would appear to be merit to investigate further, and the intention here has been some criticism and concern – some feel that race is a far broader issue than gender (which for the purposes of corroboration of data, appears to be binary).

In turn, others have responded by citing that you cannot simply lump ‘non-white British’ employees altogether in one group.

Are employers confident that they have necessary data on 100% of all of their staff? If not, results could be disingenuous. There may also be those who may purposefully omit from listing their ethnic backgrounds, due to fear of discrimination.

Patrick Macken, Employment 

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