Race pay gap reporting

Recommendations on how a new requirement to report pay information broken down by race can be most effectively applied to reduce inequality.

Experts from the Institute of Employment Rights team up with the Oxford Human Rights Hub to make recommendations on how a new requirement to report pay information broken down by race can be most effectively applied to reduce inequality.

The recommendations in brief, which were based on evidence from comparable economies that have already implemented race pay reporting, included:

  1. Breaking pay information down in such a way that it can be intersectionally analysed has been shown to provide more useful data for the tackling of inequality
  2. Employers should be required to present an action plan for how they will reduce race pay inequality as well as reporting on it;
  3. Ethnicity should be classified according to the evidence of differential outcomes and should include disadvantaged white minority groups, such as those from Eastern Europe;
  4. Ethnicity should be self-identified by workers;
  5. The duty to report the race pay gap should be imposed by all employers who either have 11 or more employees working 16 hour or more per week, or have a high annual turnover. The requirements on smaller businesses should be scaled down to a manageable level.

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