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UK companies with 250+ employees must report ethnicity and disability pay gaps under Labour's proposed laws, extending equal pay rights to minority groups, following gender pay gap reporting from 2017.
UK companies with 250-plus employees will have to report
ethnicity and disability pay gaps under Labour plans laid out in
the King's Speech last week.
The King also announced a draft bill that would extend full
equal pay rights to ethnic minority and disabled workers.
Under existing law, women are afforded more stringent
protections than other groups. Gender pay gap reporting has also
been in force since 2017, but the Conservative government declined
to introduce similar reporting requirements for ethnicity in 2022,
saying that it did not want to impose new reporting burdens on
businesses and suggesting there would be "significant
statistical and data issues" involved.
An analysis by KPMG in 2022 of the impact of gender pay gap
reporting suggested that any positive change directly driven by the
regulations had been "statistically modest" so far: while
the gender pay gap among full-time employees dropped from 9.1% in
2017 to 7.9% in 2021, it was already in decline when the regime was
introduced.
So, were the announcements in the King's Speech enough to
move the dial on pay equality? Employment law expert, Louise Taft spoke to Management Today to give her view.
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