MPs call for mandatory ethnicity pay gap reporting

MPs have called on the government to make ethnicity pay gap reporting mandatory for larger firms, as experts urge employers to start collecting data now. 

In a parliamentary debate the government was told that unless ethnicity pay gap reporting was made mandatory for larger organisations, businesses would struggle to make the progress needed to close the pay gap. It was argued that mandatory ethnicity pay reporting, modelled on the current gender pay disclosure requirements, “would be one of the most transformative steps a company could take to address racial inequality at work and overcome practical difficulties in the workplace.”

The debate was triggered by a petition for the introduction of mandatory pay gap reporting, which was launched in the wake of the Black Lives Matter protests last year, which received more than 130,000 signatures.

The CIPD have called for ethnicity pay reporting to be made mandatory by 2023, and have published a framework for businesses that wanted to start collecting and publishing their data now. 

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