In July 2024, the Government announced its intention to bring forward the Equality (Race and Disability) Bill, introducing a requirement for large employers (those with 250 or more employees) to report on ethnicity and disability pay gaps. It has now launched a consultation seeking views on how it should be implemented.
The Government proposes to use the same set of pay gap measures for ethnicity and disability as are currently in place for gender pay gap reporting, with the addition of data relating to:
2. The percentage of employees who did not disclose their personal data on their ethnicity and disability For ethnicity pay gap reporting, the Government proposes that there should be a minimum of 10 employees in any ethnic group that is being analysed and acknowledges that this may involve grouping ethnic groups together to meet the threshold. It also proposes an option for ‘binary classification’ where an employer has smaller numbers of employees in different ethnic groups, allowing them to report their figures for two groups. For disability pay gap reporting, the Government proposes taking a wholly binary approach, measuring the disability pay gap by comparing the pay of disabled employees with non-disabled employees. Again, it is proposed that there should be a minimum of 10 employees in each group being compared. The consultation is expected to run until 10 June 2025. |