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Guidance Published on Voluntary Ethnicity Pay Gap Reporting

on Friday, 28 April 2023.

The Government published its Inclusive Britain report a year ago. It has now reported on its progress in tackling the actions set out in the report.

It has also published guidance on voluntary ethnicity pay gap reporting.

Inclusive Britain - Update Report

The March 2022 Inclusive Britain report sets out the Government's commitment to tackling ethnic and racial disparities in the world of work and beyond. It contains a number of action points in response to recommendations made previously by the Commission on Race and Ethnic Disparities.

The Government has now published an update on the progress it has made in working towards those action points, stating that 32 of 74 actions have been delivered. As part of its update report, the Government has also published guidance on

  • voluntary ethnic pay gap reporting
  • inclusion and positive action in the workplace

Pay Gap Reporting Guidance

The Government previously confirmed that mandatory ethnic pay gap reporting will not be introduced. However, it does recognise the value in analysing ethnicity pay information in order to help employers understand and address pay disparities. It has now published guidance on voluntary ethnic pay gap reporting for employers. The guidance contains advice on:

  • collecting employees' ethnicity pay data
  • how to consider data issues such as confidentiality, aggregating ethnic group and the location of employees
  • recommended calculations and guidance on how to carry them out
  • how to report findings
  • carrying out further analysis to understand an organisation's pay gap
  • the importance of taking an evidence-based approach towards actions

Inclusion and Positive Action in the Workplace

The second piece of guidance published by the Government is on positive action and inclusion in the workplace. The aim of the guidance is to support employers to take positive action whilst avoiding unlawful discrimination. It draws on the Equality and Human Rights commission's Statutory code of Practice on Employment, which contains a dedicated section on positive action.


For more information or advice, please contact Charlotte Rose in our Employment Law team on 0117 314 5219, or complete the form below.

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