Ethnicity Pay Reporting Consultation 12 October 2018
A consultation on ethnicity pay reporting has been published alongside a Race in the Workplace Charter. The consultation asks how a new reporting requirement should operate.
The government introduced gender pay gap regulations in 2017 requiring large employers to publish the difference in pay and bonuses between their male and female staff. Over 10,000 employers reported their data in the first year of reporting. In her February 2017 report, Race in the Workplace, Baroness McGregor-Smith recommended that the government should legislate to introduce mandatory reporting of ethnicity data. At the time, the government said that the case had been made for ethnicity reporting and it expected businesses to do this voluntarily.
The government asked Business in the Community (BITC) to assess what steps employers have taken to haul down workplace barriers and harness the talent of a diverse workforce – they found that barriers persist in the workplace.
We now know that only a small number of employers have chosen to publish ethnicity pay data voluntarily. In the ethnicity pay reporting consultation, the government invites views on mirroring some or all elements of the gender pay gap regulations such as proposing the same threshold of 250 employees or above for mandatory reporting.
CIPP comment The CIPP Policy Team will naturally be dissecting the consultation document and asking members and the payroll profession for their input so please do watch out for a survey on this subject in the coming weeks.
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CIPP response to consultation on Ethnicity Pay Reporting 14 January 2019
The CIPP has submitted to government its formal response to the consultation on Ethnicity Pay Reporting.
Background In her February 2017 report, Race in the Workplace, Baroness McGregor-Smith recommended that the government should legislate to introduce mandatory reporting of ethnicity data. At the time, the government said that the case had been made for ethnicity reporting and it expected businesses to do this voluntarily. The government asked Business in the Community (BITC) to assess what steps employers have taken to haul down workplace barriers and harness the talent of a diverse workforce – they found that barriers persist in the workplace. Only a small number of employers had chosen to publish ethnicity pay data voluntarily, so in October 2018 the government published a consultation on ethnicity pay reporting (alongside a Race in the Workplace Charter) asking how a new mandatory reporting requirement should operate.
The government invited views on mirroring some or all elements of the gender pay gap regulations such as proposing the same threshold of 250 employees or above.
CIPP conclusion and recommendations From an administrative burden perspective comparability with the methodology applied for gender pay gap would be preferred by our members. However, our members are pragmatic and recognise that this will not achieve the same results because of the different challenges presented by ethnicity classifications.
There must be value achieved through the efforts of the software developers, payroll and HR professionals and so we recognise different methodology will be required.
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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