Ethnicity Pay Gap Reporting in the U.K.

Labor and employment counsel Emma Vennesson and business litigation trainee solicitor Sinead Cuthill coauthored an article for Employee Benefits that discusses a recent policy paper in which the United Kingdom government stated it would not be mandating ethnicity pay gap reporting in order to “avoid imposing new reporting burdens on businesses as they recover from the pandemic.”

In the article, Vennesson and Cuthill outline criticisms of the government’s position on ethnicity pay gap reporting by the Women and Equalities Committee. The authors also touch on potential challenges noted by the government with regard to reporting on broader categories of ethnic groups.

Vennesson and Cuthill explain that, with the current trend towards greater transparency, employers should keep ethnicity pay gap reporting on their agenda and monitor the government’s guidance.