• Mandatory ethnicity pay gap reporting will be introduced in the future, along with the Equality (Race and Disability) Bill.
• Ethnicity data is a special category under GDPR, so employers must state what it will be used for and how it will be stored.
• Employers can use ethnicity pay data to identify wage disparities and opportunities or recruitment biases.

The King’s Speech in July confirmed that the government will introduce mandatory ethnicity pay gap reporting for employers with more than 250 employees through the draft Equality (Race and Disability) Bill. This proposed bill will also enshrine contractual equal pay for ethnic minorities and disabled employees through law and educate around what a pay gap is, because it does not always signify an equal pay issue.

Employers may, therefore, want to make a head start and start exploring how this will affect them in order to make plans.

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