The recent King’s Speech, which set out the immediate priorities of the new Labour government, included provisions for a new Equality (Race and Disability) Bill. The Bill will require employers with 250 staff or more to report their ethnicity and disability pay gaps, similarly to the way in which employers are currently required to report their gender pay gaps.
It was assumed that the Government would announce further amendments to the existing gender pay gap legislation, perhaps requiring employers to publish action plans detailing how they intend to deal with their gender pay gaps. This did not appear in the King's Speech. However, the background notes to the King’s Speech highlight that in 2018/19 only an estimated 52% of employers published an action plan and further states that ‘there are effective actions employers could be taking’. Taken together, the measures outlined in the speech and these notes imply that the Government wants to encourage employers to become more candid with their staff about pay.
The King’s Speech follows a recent survey by IDR, which found that employers are taking steps to becoming more transparent about pay. The survey found that the majority of participating organisations have identified the issues behind their pay gaps. However, a smaller proportion have drawn up action plans to address these gaps.
IDR offers services which help employers to identify the causes of their pay gaps, and we can work with you to devise strategies to reduce such gaps while promoting equality, diversity and inclusion in the workplace. To find out more please click below.
